If you think blockchain is only about cryptocurrencies? You are missing out.
Blockchain is normally associated with cryptocurrencies such as Bitcoin, Ethereum, Tether, BNB, etc., but it has much broader applications. It allows customers, content creators, users, collectors, bloggers, and streamers to get rewarded directly rather than through the third-party content platforms. Non-fungible tokens (NFTs) are the most common example of this.
NFTs create equitable, transparent reward systems for content creators, gamers, operators, and community-led control for content creators. Many, still view blockchain as this mysterious and far-out technology, it's becoming increasingly clear that Web 3.0 will revolutionize the way the world connects. Before going ahead let’s understand Blockchain.
What is Blockchain?
Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. One of the best things about Blockchain is that it is decentralized, and the data stored in it is immutable, thus making it credible for the industries. Its distributed database allows secure & transparent transactions.
To simplify it, we can say Blockchain is a digital ledger that can be accessed by hundreds and thousands of computers (called nodes) which are the members of a peer-to-peer network, each of them having a copy of the database. The ability to verify both parties in a transaction and make a permanent public record of the exchange advocates transparency and impacts all areas of business.
How Blockchain is evolving business operations?
Some of the world’s leading companies such as IBM, Microsoft, Google, Unilever, Nestle, McDonald’s, and Facebook have been investing in blockchain technology and using it to solve some of their most complex problems. Blockchain for business uses a shared and immutable ledger that can only be accessed by members with permission. In IBM, Blockchain is also referred to as a “trustless” network — not because business partners don’t trust each other, but because they don’t have to. The trust in the Blockchain is based on its enhanced security, greater transparency, and instant traceability.
Blockchain is also being offered as a service. The Blockchain as a Service (BaaS) model enables companies to access the Blockchain provider’s service wherein they can develop Blockchain applications at a minimal cost. offering the benefits of Blockchain-based services to a wider audience, the technology has started being offered in the cloud as a service business model. On the operational front, it is more or less similar to the SaaS, PaaS, and IaaS models which enable using cloud-based apps and storage.
Blockchain delivers even more business benefits, including the cost savings from increased security, transparency, efficiency, and automation. Let’s discuss them one by one:
Data security
Data security is a huge issue for everyone, there are frequent breaches that make the news, and baffle everyone if their identity or financial information has been compromised. Blockchain is changing how your critical information is viewed. By creating a public record that can’t be altered and is encrypted end-to-end, blockchain helps in preventing fraud and unauthorized activity.
Nurture Transparency
Blockchain technology provides a fully auditable and valid ledger of transactions. All transactions are immutably recorded and are time- and date-stamped. Since these smart contracts are available on public records, It is by far the best transparent system. Blockchain also enables members to view the entire history of a transaction and virtually eliminates any opportunity for fraud.
Enhanced efficiency and speed
Blockchain removes any third-party intervention between transactions and removes the mistake making the system efficient and faster. Settlement is made easier and smooth. There’s no need to reconcile multiple ledgers, and transactions can even be automated with “smart contracts,” which increase the efficiency and speed of the process even further.
Automation
Blockchain technology allows for automated verification by the network of machines itself. Once pre-specified conditions are met, the next step in the transaction or process is automatically triggered. Blockchain permits machines to exchange value and introduce the element of discretion into the hands of Machines. Smart contracts reduce human intervention as well as reliance on third parties to verify that the terms of a contract have been met.
How Blockchain is shaping marketing?
Blockchain was designed so that the web can run in the way that we know and love but without all of the concerns surrounding our data. It is the foundation of cryptocurrencies, but its applications are much more diverse. Marketing is one of these, and it is only a matter of time before it will disrupt the way we promote business using digital means. The ideas that were mere theories are being replaced with solutions addressing transparency, efficiency, and tackling fraud. The first impact of the Blockchain will be visible in digital marketing efforts.
As consumers become increasingly aware of how their data is used to generate revenue by the third party, there is a growing need for alternatives and solutions. Blockchain in digital marketing will bring change to how a user connects with these communities and platforms. On one hand, blockchain technology has the potential to return data control to the owners targeting digital advertising. This empowers individuals to control their own online profiles being used for ad targeting and social media graphs. On the other hand, blockchain has the potential to bring credibility to advertisers' claims and create new models of efficiency in their advertising. Advertisers can make better decisions about ad spending and can give customers a superior experience tailored specifically to them. Below are some possibilities blockchain can bring to digital marketing:
Differentiating between Fake and Real:
In the world of fake likes and views, it’s tough to determine the real audiences. Blockchain has the capability to make marketing more transparent. Marketers will be able to control the ad delivery by verifying the audience. This will help the brands to target their audiences in a better way and build trust with their customers.
Privacy Protection:
The most imperative concern of today’s connected world is PRIVACY. It is the advertisers’ responsibility to protect their customers’ private data. Because of the Blockchain’s secure environment, this privacy concern can be resolved which will eventually boost the customer’s trust.
Eliminate Intermediaries:
Blockchain application development technology connects advertisers and users directly. It can eliminate the need for the middlemen. Apart from fraud protection and data privacy, this also reduces costs and increases operational effectiveness.
Precise Targeting:
Blockchain is also expected to make it easier for advertisers to target their customers based on a wide range of criteria, including location and demographics. This will be especially useful in the mobile marketing space, where location-based services can be used to deliver highly targeted ads. It will also be easier for advertisers to find publishers that are a good fit for their ads, based on the types of content they publish and the audiences that visit those sites.
Personalized Ads:
When it comes to online marketing, there are two viewpoints. One is of the advertiser, and the other one is of the user. For advertisers, ads are expensive and difficult to manage, whereas, from a user’s point of view, they are infuriating and invasive. This issue can be resolved by using a Blockchain browser with its own internal cryptocurrency/token. In such a browser, the users get to decide which ads they want to see and are rewarded in tokens for viewing those ads.
Analyzing Customer Behavior:
Real-time analysis of users and adjusting marketing strategies based on the result. Blockchain can gather, check, store, and automatically update databases with a little human intervention. This is believed to transform the customer insights approach. Blockchain is the perfect underlying platform to generate ideas because it prioritizes data-driven marketing.
Copyrights Protection:
Blockchain will be useful for advertisers and publishers that want to protect their copyrights, as well as for those who want to ensure the accuracy of their audience metrics.
Conclusion
Blockchain is the future. Blockchain can manage and record data securely, conduct trusted transactions, increase automation and data reliability, and enable data flows among partners, making it an ideal fit for digital marketing applications. Combined with Artificial Intelligence, there is a clear path forward, and the reward is within our reach.
Today users are protective about their digital footprint and the data they share with any entity. After the implementation of Blockchain, the data collection process for the digital marketers would become a little difficult, but far more refined. The data collected would be only from the users who are actually interested in the product/services marketed. This will lead to better conversions, which is the actual objective of digital marketing, and not just generating random clicks or leads.
Blockchain will also be effective against ad frauds. Because it's decentralized and secure. Blockchain can help marketers track their ads, published platforms, social media channels, and users who are viewing them (and who aren't). It also makes transactions more efficient by eliminating intermediaries and allowing data to be shared securely and instantly among network participants. Blockchain technology will be a major factor in the future of digital marketing. While it is still early and many details are uncertain, marketers can prepare by learning more about blockchain technology and how it can be used in their field. Blockchain technology will change digital marketing in the near future.
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