A Block-chain based Coupon Protocol with Online Evaluations and Bonus Rewards

Abstract

The competitive e-commerce pushes merchants to use various marketing methods such as E-coupons to enhance consumer purchasing. Not only the product sales but also the sales performance are increased by issuing E-Coupons. In order to increase the purchasing possibilities of online consumers, discounts and bonus rewards are often used to maximize marketing effects. This paper aims to leverage the effect of word-of-mouth by providing distinct levels of bonus rewards based on the sharing and usage history of E-Coupons, thus boosting the promotional effects of E-Coupons. Because the transaction parties in e-commerce might be unfamiliar with each other, evaluation systems are needed to help consumers select reliable trading partners without trusts. A coupon protocol applying the blockchain technology, which has the anonymous and secure data characteristics, is designed to achieve trustworthy third parties. We use the decentralization, distribution, and tamper-resistant characteristics of blockchain technology, combine with digital signatures and hash encryption, and present an e-coupon protocol with privacy protection, online evaluations, and differentiated bonus reward mechanisms. The proposed protocol can not only ensure the security of evaluations, but also achieve customer privacy protection due to its anonymous features.