Lyra Loyalty Blockchain for Merchants

What is it?

Lyra blockchain (blocklist, or block lattice to be precise) provides merchants with ability to create their own loyalty reward programs, gift cards, promotional coupons, and store credits based on crypto tokens.

How does it work?

As a merchant you establish the rate of loyalty reward points that get awarded for every unit of fiat currency spent by your customer (for example, 10 points for every dollar). You also establish the conversion rate of the reward tokens when they are redeemed to actual dollar discount (for example, $1 discount for every 100 reward points).

So in this example a buyer who purchased a $100 item, would receive 1000 reward points. The buyer accumulates these points in the Loyal Shopper wallet app. When the buyers shop your store again and want to use their rewards on the new purchases, they open up the wallet and redeem the points – these points convert into a discount code that can be applied at Shopify checkout. In our example, 1000 rewards are converted into $10 discount (those rates are flexible and configurable by the merchant).

How is Lyra solution better than similar ones in the Shopify marketplace already?

Other loyalty rewards, promotional coupons, gift cards, and store credit solutions in Shopify application marketplace are based on a centralized database tied to shopper’s Shopify account. This works up to a point though – if you were to diversify your selling to other ecommerce platforms, you would need a different loyalty provider for each platform. Also you run the risk of the application provider discontinuing support for their application or raising prices unexpectedly. This can have a devastating effect on your business as you will have shoppers with points they earned who can no longer use them. The benefit of the blockchain based solution is that it persists regardless of what happens with the software provider and it is portable across other platforms.

What is a permissioned blockchain and how do I benefit from it?

A permissioned blockchain is one where the validator/authorizer nodes are owned by known entities. In case of Lyra Permissioned, we’re setting up a community of merchants to also be the owners of this network, co-op style. As a merchant, you will have a choice to run Lyra authorization node (there will likely be technology partners who can run it for you) and stake it with LYPE tokens. Some of the Lyra Permissioned transactions are free and some incur transaction fees. The fees are then divided up amongst the node operators based on their staking amount.

Permissioned blockchain cannot be a fully decentralized network. However, even permissioned blockchain can contain features of decentralization that are missing from a regular network provided by a proprietary vendor. If permissioned blockchain is supported by multiple participants (authorizer nodes), the failure of one or even several participants does not fail the entire network. In a single-provider network, everything depends on the single entity.

Is Lyra Permissioned just for Shopify?

No, Lyra Permissioned blockchain can be extended beyond Shopify to other online and offline commerce platforms. We chose to start with Shopify for its significance in the ecommerce space and because of straightforward integration.
© 2019 LYRA Blockchain Project