Ecosysnet Blockchain-enabled Reward System Sandbox

Leader: Shan Pan

Members: Yenni Tim, Sandeep MS, Suling Jia (Beihang University), Derek Du (Beihang University), Wenchi Ying (Beihang University)

Overview

A blockchain is a distributed ledger of records of transactions, which holds value of some sort (i.e. money, goods, property or votes). Blockchain famously started as the underlying technology powering Bitcoin, released in 2009. A blockchain is a chain of blocks, where each block records all transaction data occurring within a given period, and references to previous valid blocks. In this way, stakeholders can traverse the blockchain, viewing every validated transaction dating back to the first block in the chain, the "genesis block". Once a transaction has been recorded on the blockchain, it is stored permanently and cannot be tampered with.

Despite blockchain technology being a significant and promising technologies – with the potential to enhance business processes and interoperability – organisations lack the understanding of how to leverage this emerging technology. This sandbox explores the application of blockchain in the consumer loyalty context.

Participating Organization: Ecosysnet

Ecosysnet (http://www.ecosysnet.com/index-en.html) is a leading provider of blockchain-enabled solutions. Founded in 2013, Ecosysnet's focus area is the application of blockchain technology to create trusted and secure infrastructure to enable solutions in areas such as finance, the sharing economy, supply chain management and remittance solutions.

Impact Statement

This sandbox involves a collaboration between DERN and Ecosysnet to design a proof-of-concept of a blockchain-based integrated rewards platform for HNA Group to enrich employees benefit options. HNA Group was founded as a local airline operator in Hainan province, China, in 1993. Over the past two decades, the local airline operator has transformed into a multi-national conglomerate that covers businesses such as airlines, airports, tourism, hotels, logistics, real estate and finance. In 2016, the HNA group earned revenues in excess of USD 29 billion, placing it 353rd among the 2016 Fortune 500 Companies.

HNA Group has now grown into a conglomerate with 400 subsidiaries and 180,000 employees. Designing an integrated reward platform to manage employees reward across all different subsidiaries is becoming increasingly important. In the past, subsidiaries run their own reward plans, but isolated reward plans offer employees with very limited options and thus benefits.

This sandbox explores how blockchain technology can be used to develop and support an integrated rewards platform. The central design work of this sandbox is exploring and leveraging blockchain technology to create a platform where employee benefits can be distributed and exchanged via a digital wallet. The proof-of-concept will be experimented in various use scenarios and iteratively improved based on feedback from HNA.