Via Hyperledger, AmEx to Test ‘Blockchain for Membership Rewards’
Financial services powerhouse American Express has turned to IBM’s Hyperledger blockchain platform to test a new blockchain-based membership rewards program. The initiative is only the latest mainstream project leveraging Hyperledger’s tech.
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A New Way for Rewards
American Express has established itself as one of the most recognizable brands in the United States. And now the high-profile company is piloting one of its most popular assets onto blockchain technology in a test that may cause competitors to consider doing likewise.
The experimential pivot marks a milestone, being blockchain’s inaugural deployment in a large American firms’ rewards system.
Digging Through the Details
In describing its blockchain-based loyalty trial, AmEx laid out three specific benefits that merchants could eventually enjoy from it:
- Little time and resources needed to get started
- Rapid deployment of rewards offers
- Resulting data secured and private
To that last point, AmEx has promised to create private channels “on our blockchain implementation with the merchant to securely pass information back and forth.” The company also promised to produce “the appropriate anonymized smart contract codes for their offers to allow for proper passing of information and rewarding on our end.”
Hyperledger Use on the Rise
IBM’s open-source Hyperledger software has attracted many new users in recent months.
For one, the Chow Tai Fook Jewellery Group and the Gemological Institute of America just turned to the Hyperledger blockchain to create a jewelry supply chain system. Another jewelry consortium has also recently embraced the tech for its own logistics play.
Last year, seven large European banks embraced Hyperledger to create a trade finance platform for small to medium sized enterprises (SMEs). IBM’s also worked with insurance titan AIG to test out smart contract insurance policies “on chain.”
If these adoptions are any indication, we’ll be seeing much more of Hyperledger in the near future.
What’s your take? What’s your take? Is IBM a growing powerhouse in the blocktech world? Let us know your thoughts in the comments below.
Images via Samantha Stump, AmEX