Mar 13, 2019 / by admin / in: Blog
The rise of blockchain technology is making people on the edge of their seats. However, it’s just the tip of the iceberg. It’s believed that Blockchain technology will transform the digital marketing world and cause a noticeable shift.
What is Blockchain?
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
– Don & Alex Tapscott, authors of Blockchain Revolution (2016)-
To have a basic understanding of the blockchain, imagine a spreadsheet that is duplicated thousands of times across a network of computers, and that whoever updates this spreadsheet, the update takes place on all the copies on the network.
The Information held on a blockchain exists as a shared — and continually reconciled — database. The blockchain database isn’t stored in a single location, meaning that its records are public and easily verifiable. Its hosted by millions of computers simultaneously, which means that it’s data is accessible to any internet user; so, there is no centralized version of this information for a hacker to corrupt.
By allowing the digital information to be distributed and not copied, blockchain technology creates the backbone of a new type of internet.
Originally devised for the digital currency, Bitcoin, The application of blockchain technology can go well beyond cryptocurrency, reaching global finance, healthcare, and more.
Here are some ways blockchain technology will impact digital marketing
The various encryption methods make it harder for third parties to access data like emails and phone numbers and addresses. This is the best thing since sliced bread for consumers who are not interested in sharing their information. However, it might seem like a challenge for marketers. This is because knowing the consumers’ behavior will be a lot harder.
The solution here will be directly paying consumers for personal information. This can be done in various ways like smart contracts and decentralized apps. The advantage here is that digital marketers won’t have to depend on third parties like facebook and google to get their data. In this case, no one will be subjected to the algorithms set by companies that are biased sometimes.
The good news is that products will be more tailored to the consumer, which in turn makes them ready to pay for something that matches their unique needs.
Exclude the Need for Middlemen
Using the blockchain technology will eliminate the need for credit cards or centralized transactions. The transaction will take place between only two parties.
As mentioned before, the technology works by establishing a pear-to-pear system that enables the direct communication between parties without putting the control in the hand of a third party.
Blockchain-based transactions help build trust between the customers and the brand. companies that embrace the blockchain technology stands out as accountable and transparent.
As blockchain technologies are decentralized, all transactions are verified by several people before being recorded on the general ledger.
In a nutshell, blockchain is on the rise. In the future adapting to the new technology might be out of the question.
Abeer Mostafa / Senior copywriter/ Webmaster / Eureka Digital