Decentralized computer systems and methods for loyalty points payments using distributed ledgers

A method for conducting payment processing, the method comprising:

• initializing a smart contract of a distributed ledger network that maintains a list of agreed conversion rates between different loyalty points and currencies;
• converting a transaction amount in a transaction authorization request, which is a block in the distributed ledger network, from an amount in a currency to an amount in loyalty points issued by a first merchant, according to a conversion formula retrieved from a distributed ledger entry of the smart contract of the distributed ledger network;
• and
• prompting validators of the distributed ledger network to validate a transaction authorization request for a transaction with a second merchant by comparing the converted transaction amount in loyalty points issued by the first merchant with an amount of loyalty points present in a loyalty account issued by the first merchant to a consumer.

A computer system for conducting payment processing, the computer system comprising:

• a data storage device storing instructions using a distributed ledger;
• and
• one or more processors configured to execute the instructions to perform a method including:
• initializing a smart contract of a distributed ledger network that maintains a list of agreed conversion rates between different loyalty points and currencies;
• converting a transaction amount in a transaction authorization request, which is a block in the distributed ledger network, from an amount in a currency to an amount in loyalty points issued by a first merchant, according to a conversion formula retrieved from a distributed ledger entry of the smart contract of the distributed ledger network;
• and
• prompting validators of the distributed ledger network to validate a transaction authorization request for a transaction with a second merchant by comparing the converted transaction amount in loyalty points issued by the first merchant with an amount of loyalty points present in a loyalty account issued by the first merchant to a consumer.

A non-transitory machine readable medium storing instructions that, when executed by one or more processors, cause the one or more processors to perform a method for conducting payment processing, the method including:

• initializing a smart contract of a distributed ledger network that maintains a list of agreed conversion rates between different loyalty points and currencies;
• converting a transaction amount in a transaction authorization request, which is a block in the distributed ledger network, from an amount in a currency to an amount in loyalty points issued by a first merchant, according to a conversion formula retrieved from a distributed ledger entry of the smart contract of the distributed ledger network;
• and
• prompting validators of the distributed ledger network to validate a transaction authorization request for a transaction with a second merchant by comparing the converted transaction amount in loyalty points issued by the first merchant with an amount of loyalty points present in a loyalty account issued by the first merchant to a consumer.