🔏Data Security & Privacy

Figure 8. Payment channel pattern

Figure 9. Sequence diagram of payment channel

• A provider could create payment channels to its customers. All transactions between a provider and its customers are executed off-chain. No-one is able to trace how much reward a provider has been rewarding to its customers except the merchant itself. The provider may make multiple rewards to a customer, and vice versa the customer may also spend her rewards in multiple purchases. Only when the customer requests to settle her final reward balance, the transactions will be processed and published on-chain.

• A customer of provider A is able to make a purchase on provider B if there is a route or a channel between A and B.