Research Report: Global Blockchain Industry Development Panorama (2019-2020) (Part 2)

3.11 Commercial marketing
Membership and point management is one of the most important marketing methods of an enterprise. Membership rights and interests are exported through member levels, discount promotions, points and gift exchanges, etc., improving member loyalty and enhancing the overall user stickiness of the enterprise.

At present, there are many pain points in the traditional enterprise member points operation system, which affects the efficiency of member incentives and management. First, the traditional membership points system is usually closed, the points are "produced and sold", and the access to and use of the points are relatively limited, and they cannot be easily exchanged with other points. For users, there may be membership points on multiple platforms, or there are many long-tail points that cannot be comprehensively utilized to maximize utility. From the perspective of the enterprise, the closedness of the points within the ecology also makes the value of the member's points lower, and the incentive effect and marketing efficiency for the members are correspondingly weakened.

Secondly, a common method of cashing in membership points is to redeem gifts and services. In addition to the products already in the enterprise itself, most of the gifts may come from external service providers, such as airline points and Alipay points. Species. In the case of an external equity service provider, the reconciliation between points is a very tedious task, and the service provider usually receives the points paid by the user and then settles with the enterprise. The traditional points are recorded and maintained by a single enterprise. The overall issuance and circulation between platforms, merchants, and users are not transparent. The data can be tampered with arbitrarily. Points may be abused, invalidated, and reconciliation errors may damage users and Merchant interests.

The member credit system based on the blockchain can use the technical characteristics of the distributed ledger of the blockchain to effectively solve the current situation where the credit system is closed and the information of all parties is opaque. A more transparent and reliable credit system is recommended. Through the blockchain, a point exchange platform between enterprises can be built to replace the point exchange scheme based on file transfer, which enables real-time clearing of points between companies, and users can redeem points of other companies anytime, anywhere, so that fragmented points can be maximized. Value, so as to help companies better maintain users, play the marketing effect of member points, and enhance marketing effectiveness. For platforms where there are multiple equity service providers, blockchain technology allows multiple parties to share ledgers and information to communicate, thereby better monitoring the issuance, destruction and circulation of points, and performing point payment and payment between platforms, users and service providers. Liquidation, improve the efficiency of points settlement.

Member points combined with blockchain technology will form a credible member point marketing system. In the future, the platform can also continue to expand ecological service providers and join the link of marketers. When member points can be used as a means of paying rights and interests within the ecosystem, the programmable feature of blockchain points can also be used to achieve the relationship between marketers, service providers, and platforms. Real-time distribution, make marketing data and effects transparent, better achieve precision marketing, enhance user stickiness, and at the same time reduce the trust cost of multi-party cooperation and achieve a win-win situation for multiple parties.

China Southern Airlines recently launched a point mileage exchange system based on blockchain technology. Blockchain is essentially a distributed bookkeeping technology. Through its transparency, non-tampering and traceability, it reshapes the process of redeeming points and miles, technically solves the problem of information verification and security, and the redemption process is realized. Automated and traceable throughout the process, to avoid time lag and misoperation caused by manual operations, but also give the points more fairness and higher transparency.

Huobi China has also successively developed several blockchain-based scoring systems with large companies, such as Coconut Credits and Haima Planet.

Coconut points are jointly developed and operated by Huobi China, Coconut Cloud Network and Hainan Bank. It is the first “point issuance and exchange platform” based on blockchain in China. Users can hold coconut points to exchange for massive gifts. Among them, Yeyun Network is a third-party point operation platform, issuing and operating points for various businesses; Hainan Bank is a fund custodian, responsible for checking the point flow and completing the fund settlement of points. In actual operation, since the issuance and destruction of points are carried out by the platform operator itself, there may be information asymmetry such as point over-issuance, which has a large run risk for other participants, especially the fund custodian Hainan Bank. The entire The trust cost of the system is higher. The Coconut Cloud platform builds an account management system based on the blockchain, which is used uniformly by platforms, merchants, and users to achieve business process on-chain, and the point issuance and exchange process are open and transparent. For merchants and users, you can query the platform through the blockchain account book to issue and transfer points in real time; for the platform, the points are exchanged for real-time clearing and settlement, which greatly improves the efficiency of the platform operation and reduces the cost of trust; for banks, platform points The issue of the issuance and redemption balance can be implemented through automatically triggered contract rules to effectively prevent over-sending of points. At the same time, based on the bottom layer of the blockchain, the entire process of point issuance and redemption is monitored for security, operation conditions are collected, real-time monitoring and abnormal alarms are provided to ensure the safe operation of the system.

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Hippocampus Planet Platform is a smart service platform jointly built by Huobi China and Chuangchuang based on blockchain technology and facing consumers and private gas stations. Based on the blockchain technology, a universal point system has been built, including two types of point systems: stable payment points and reward points. Payment points create a unified settlement system. Based on blockchain and smart contracts, it can automatically generate financial statements and provide real and transparent point data to service providers that accept point payments in the access system; reward points are for service providers and users. Reward points can be obtained by paying points for consumption. A unified reward point system is provided for various services, so that the membership points of various service providers can be merged, and there are more and more concentrated rights exchange options, so that the service platform is more motivated to use. In December 2019, the "Coconut Tourism Consumption Points" platform for tourism scenarios was successfully released, becoming the first landing application of my country's tourism consumption industry to use blockchain technology for point issuance and exchange supervision. Since its operation for more than a year, a total of more than 31 million regulated points have been issued based on the platform. The number of accounts has reached more than 100,000, and the point flow has exceeded 30 million yuan. It has provided services for more than one hundred merchants, accessing more than 200,000 kinds of exchange goods such as Jingdong Mall, Netease, Xuanhua, recharge, refueling cards, etc. The value of points exchanged goods exceeds 50 million yuan.

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The Haima Planet Platform not only solves the problem of opaque financial reports of private gas stations, but also establishes a standardized incentive system. Through bilateral incentives for merchants and users to achieve user growth and merchant income increase, resolve invalid competition, break the current fragmented operation of private gas stations, achieve economies of scale, and promote private gas stations to achieve new development. The unified membership points system will have a larger user group and higher user stickiness, will attract more service providers to join, and form a virtuous circle. In the future, based on the service records provided by the blockchain, it will be possible to realize a diversified automobile industry form with multiple parties including gas stations as the center, 4S stores, peripheral merchants, and automobile insurance companies.

4. Challenges and countermeasures for the implementation of blockchain applications
As an emerging technology, in the process of application, in addition to finding the true integration point with the industry and solving the real pain points in the industry, there are also some problems or general concerns that need to be resolved before the actual operation. . At present, the main concerns of enterprises when applying blockchain are: how to ensure the authenticity of the information on the chain and the premise of establishing a trusted environment for the blockchain; how to ensure data privacy and ensure that the enterprise itself in the process of applying the blockchain Do not disclose sensitive data; enterprises prefer to use the alliance chain, so will the use of the alliance chain affect the data communication and interaction outside the alliance; how to cold start and sustainable development of industrial blockchain projects.

4.1 How to ensure the authenticity and validity of the information on the chain

The relationship between information and blockchain can be divided into two stages: before the information is on the chain and after the information is on the chain. The advantages of blockchain traceability and anti-tampering are mainly to create value at the stage after the information is chained, such as ensuring the authenticity of the information after chaining, so that users can trust it with confidence; but to ensure that the information the user believes is true It is correct, we must start from the source of the information, that is, how to ensure that the information has not been tampered with before it is uploaded to the chain. This cannot be achieved by a single blockchain technology, and can be improved from two levels with other methods.

The first level is the level of information collection, which can be used to authenticate the information in the information collection link, so that the information can be endorsed with certain authority before being processed on the chain.

This method needs to be based on existing information authentication methods, such as notarization by a notary office, CA certification, due diligence, etc. The tZero investor KYC mentioned in Section 3.1 of this report adopts the method of conducting due diligence and then on-chain. In this case, all relevant information of the investor is audited off-chain through traditional methods, such as ID, address, net Assets, etc., after obtaining the results, generate an investor account on the chain, and manage the account permissions through smart contracts based on the results of the audit. This account and the corresponding authority are actually the investor's identity information on the chain. All subsequent actions involving lifting of the ban and market transactions will be based on this authenticated information.

In the process of information authentication, you can also use other technologies, such as voice recognition, fingerprint recognition and other biometric recognition technologies. Biometrics are essentially endorsements of information. Different information generated by the same user can be uploaded to the chain after the biometric authentication. In addition, you can also use the Internet of Things technology to automatically collect data from the machine, reducing manual intervention and reducing the possibility of tampering with information.

The second level is to shorten the time window between the generation of information or the verification of information to the chain of information to reduce the possibility of human tampering.

In order to shorten the window of information on the chain after information verification, we can set up verification nodes in the alliance license chain to let the information be broadcast to other nodes as soon as they are verified. You can even put the verification process on the blockchain, such as introducing multiple certification agencies, uploading the certification results separately, based on the smart contract judgment, only after all the certifications are passed is the certification completed, and the smart contract judgment is also The information will be automatically time stamped to complete the information on-chain process. In addition, the data collected based on sensors, Internet of Things and other technologies can also directly bypass the manual intervention link and realize automated real-time on-chain.

In addition to enhancing the credibility of the information before it is uploaded through the above methods, the non-tampering modification of the blockchain after it will be placed on the chain will also restrict the tampering behavior before the chain, especially for temporary tampering. Based on a single point of management system, the data can be changed at will, and the information can be changed back without leaving any traces after temporarily doing evil to achieve the purpose. But once the tampered data is uploaded to the blockchain, there is no chance to modify it, or any modification will leave an indelible record. Therefore, whether to tamper with the data before it is uploaded to the chain has become a problem that requires careful consideration for the perpetrators. As a result, the cost of tampering with the data also increases.

4.2 How to ensure data privacy

An important goal that the blockchain hopes to achieve is data sharing to solve the problem of data islands. In the process of data sharing, companies often have concerns about data privacy, which also greatly hinders the application of blockchain. Therefore, how to ensure that data is shared under the premise of protecting privacy is an urgent problem to be solved. Common privacy protection methods of blockchain can be divided into two types: setting data permissions and encrypting calculations.

Setting data permissions refers to certain methods that restrict the permissions for reading data. Multi-signature is a way to use more. When an account on the blockchain transfers data to another account, a digital signature is used. The basic process is: the receiving account first generates a pair of keys, and at the same time uses one of them as the public key to obtain the sending account of the public key Use this key to encrypt the data and send it to the receiving account together with the digital signature containing the sender's private key. The receiving account uses another corresponding private key to decrypt it, which realizes the blockchain Confidential data transmission. If the receiver is a multi-signature account, you need to change one digital signature in the process into multiple signatures, and the receiver also needs to use multiple corresponding private keys to decrypt the information, for example, the multi-signature account corresponds to N keys Yes, it can be stipulated that it needs at least M (M is less than or equal to N) to decrypt the corresponding private key in order to view the data. In enterprise applications, only the decrypted private key can be authorized to the relevant personnel to achieve a higher level of data privacy controlled by multiple parties.

Based on this feature of key pairs, we can also combine smart contracts to make additional restrictions on the authority to decrypt the private key. For example, a limited time to have permissions: the smart contract restricts the person who holds the private key to decrypt the information within a specific time, and the permission automatically expires after the limited time. Or obtain the permission by event driving: Only when a specific event occurs, the N keys can have the decryption permission.

In addition to restricting the permission to read data, there are some ways to directly bypass information reading and directly perform encryption calculations.

Secure multiparty computing is one such method. This solution mainly solves the problem of how to safely calculate a contract function when multiple parties participate in data processing and there is no trusted third party. All parties involved in the calculation can complete a certain calculation process without revealing their own data, and the final calculation result can also prove to be correct. Secure multi-party computing can solve the pain points that are difficult to share valuable data or private data in the era of big data, such as financial data and medical data. With the assistance of secure multi-party computing, multiple data holders can cooperate with greater confidence and create greater value without compromising their own interests. The Trusted Execution Environment (TEE) technology can also achieve the purpose of encrypting data. It mainly encrypts data and calculation processes through hardware and the software closest to the hardware. TEE is a safe area within the CPU of a computing device. It runs in an independent environment and runs in parallel with the operating system. Credit applications running in TEE can access all functions of the main processor and memory of the device, while hardware isolation ensures that other applications in the operating system cannot view the data and code in TEE, thereby ensuring confidentiality in this environment. The main differences between TEE and secure multiparty computing are: 1) TEE technical solutions need to be supported by hardware, and secure multiparty computing is mainly based on software; 2) TEE environment mainly ensures the privacy of data and computing processes in a single device, while secure multiparty computing Mainly guarantee the privacy of data calculation when multiple parties collaborate.

4.3 How to realize data communication between alliance chains

At present, most blockchain applications only solve the problem of data sharing and collaboration within a single alliance license chain. If there are other entities or other alliance chains that want to interact with this system, they need to join this alliance license chain to become The node. But the cost of doing so is high, and it is impossible for all the world's subjects to join a common alliance chain, and sometimes this "interaction" can be

Please read the Chinese version for the details.