Self-protect personal data powered by the blockchain loyalty program
5 min readOct 27, 2020

Blockchain loyalty program is considered the leading solution for the demand for self-protecting personal data in the digital era.

Companies, especially retailers or product suppliers always want to build a loyalty program to create their quality customer databases.

Such a database that includes personal data is always a competitive advantage for companies as it allows them to identify customers who are likely to stay with the brand and become more loyal.

However, misuse of customers’ personal data is the dark side of these programs. Therefore, companies are choosing a new direction by exploiting decentralized storage with blockchain to protect the security and privacy of customers. Blockchain loyalty programs open up opportunities for users to join corporate loyalty programs while still being able to self-protect their personal data.

  • Current loyalty programs put personal data in danger

A normal seemingly innocuous loyalty program comes with attractive rewards to lock customers into a company’s ecosystem. The secret trade-off, however, is that customers don’t lose money for the rewards they get but their personal information.

This often happens with existing loyalty programs. When subscribing to a major harmless company service, a customer may inadvertently agree to subscribe to a hidden service, targeting to share your browsing history and application usage with other companies, with or without being analyzed.

The potential of this activity has even created a $ 200 billion data brokerage industry with thousands of companies involved. Companies in the data brokerage world own tens of thousands of servers to collect and analyze consumer data (e.g. Acxiom is the largest company).

These companies collect up to 3000 data points per user including information about name, phone number, email address, residential address, credit score, investments, shopping habits, collected annually,… The information is then classified into groups based on their preferences and characteristics to sell to different clients.

Some data brokers charge their users an entry fee if they don’t like the idea of ​​their data being sold, or pay the user a sum of money to gain access to their social media accounts and transaction data for their credit card.

In general, the current data world still has plenty of ambiguity, where consumers are lacking control of their data, and depending on third-party data storage providers.

With fortune, customer information can be legally used for the purpose of personalizing other products or services in the future. Otherwise, your data could be sold to companies using that information illegally.

For example, it can be used to create a fake identity, representing to perform illegal activities. You may be prosecuted for a criminal act that you never did, or be rejected for the opportunity to participate in another service. There are countless ways that your data can be misused without your expectation.

However, the emergence and development of blockchain technology have opened up new opportunities for loyalty programs, helping them become more precise and transparent.

  • Blockchain loyalty program powering self-protect personal data

Blockchain can revolutionize all loyalty programs, from simple purchases of a local retailer to the complex travel industry.

Indeed, thanks to its non-centralized operation of data storage centers, high levels of data transparency, and cryptographic algorithmic technology, blockchain has brought about a positive effect in enhancing the ability to control personal data from the core, through:

  • Data ownership: The decentralized mechanism of blockchain ensures users own and control their personal data. Users will have their pair of public-private keys to encrypt and decrypt data.
  • Data transparency: Each user is completely transparent about which of their data is being collected and how it is being collected. In addition, the blockchain system can interact easily with other databases, so existing data remains in its original position if the transform happens.
  • Access control: Users can change the set of permissions at any time and revoke access to previously collected data. While the user interface will likely be preserved, access control policies will be securely stored on a blockchain, where only users are allowed to change them.
  • Get started on your blockchain loyalty program project

The landscape of blockchain platforms is quite diverse, including many layers: Protocol (framework and software platforms); Network (business networks that are managed by multiple parties); Application (business applications and templates deployed on existing networks); BaaS (software as a service solution that helps operate and manage blockchain networks on cloud or virtual private servers).

However, we believe that a complete blockchain loyalty program needs to meet three criteria: Portability to be able to easily run on different clouds or on-premises systems; The flexible architecture can be easily integrated with each organization’s existing business infrastructure; it can provide communication capabilities between organizations.

Therefore, we develop akaChain in the form of BaaS (Blockchain-as-a-Service) that brings the most power of blockchain to modern businesses.

akaChain simplifies the development and management of a private blockchain system by providing automatic deployment solutions on different cloud infrastructure, ready-made business application templates, and professional support services.

In general, our target customers are enterprises that seek to build production-level blockchain-based applications with great flexibility as mentioned in the previous section.

Partners implementing their blockchain loyalty program with our platform may see benefits including lower administrative costs, improved customer experience, and increased user engagement.

If you want to know what blockchain solution is right for your business, leave your information or contact us right away for a free consultancy.

About akaChain

akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since Establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit

Contact us for more information:

Phone: +84 90 1133883



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