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Types of Transactions

In the context of a Points Ledger system designed to manage loyalty points or similar digital assets, transactions can be classified into several types. Each transaction type serves a specific purpose, from creating new points to moving them between accounts or even removing them from circulation. Let's explore the types of transactions that are typically supported:

Types of Transactions​

There are several key transaction types within a Points Ledger system:

  1. Mint Transactions:

    • These transactions move points from an escrow account to a member's wallet. Minting is essentially the process of creating new points and distributing them to members, reflecting an increase in the total points a member possesses.

  2. Burn Transactions:

    • This type involves moving points from a member's wallet back to the escrow account or permanently destroying the points (depending on the Ledger Account configuration). Burn transactions are used to remove points from circulation, often in exchange for rewards or to adjust for expired points.

  3. Peer-to-Peer (P2P) Transactions:

    • P2P transactions facilitate the movement of points between two member wallets. This type allows members to transfer points directly to one another within the same Points Ledger system.

  4. Reversals:

    • Reversals are specific transactions that revert a previous debit transaction. This is done by creating a corresponding credit and linking both transactions together. Reversals are typically supported only for debit transactions, as credited points may no longer be available for reverting. Reversals ensure transactional integrity by allowing incorrect or disputed transactions to be corrected.

  5. Authorization Debit Transactions (or Pending Debits):

    • Used in authorization and capture scenarios, these transactions debit the balance from the source wallet and credit a "pending" balance to the receiving wallet.

    • While the total balances in both wallets are updated as in a normal transfer, the receiving wallet shows a pending credit balance yet to be applied.

    • This effectively reduces the spending capacity of the target wallet until the pending credit is confirmed. Pending debit transactions are designed to be automatically reverted after 72 hours, or a period configured by the client, if not confirmed.

These transaction types collectively enable a flexible and comprehensive management system for loyalty points, supporting various operational needs from issuance and redemption to adjustments and member-to-member transfers.

The diversity of transactions ensures that the Points Ledger can accommodate a wide range of scenarios, from simple rewards redemption to more complex financial instruments and strategic loyalty program adjustments.