The blockchain technology is a big thing nowadays, catching attention of everyone related to the digital. The hype is so loud that it influences even those who don’t understand the point. Of course, when talking about the blockchain technology Bitcoin is the first thing to come to the mind. The cryptocurrency almost reached 20 000 dollars for 1 BTC in December 2017.
However, blockchain is much more than that. It’s already called the next big technological disruption after inventing the Internet. In the nearest future blockchain will cause a major impact on both digital and economic spheres.
Unhackable data storage system
So, how does the blockchain technology work? The key feature that makes blockchain such an innovative system is keeping data not in a one secure place, but in a decentralized ledger. Every user stores data about all the changes made in a blockchain. Therefore, it is impossible to change the information without a permission of other users. That’s why blockchain is unhackable — to make a fake data, the hacker would have to change information in every user’s storage.
Resolving marketing problems
Blockchain will completely change the way of purchasement, delivery, and measurement of the ad traffic. It helps to increase the accuracy of data tracking and gives precise information about user’s engagement. The following are sufficient things that blockchain will change in digital marketing.
No intermediaries and fraud. Trust is the base of the world’s economy. We trust that a merchant will be satisfied with a piece of paper we give him for a product. A huge middleman, a bank guarantees us that money has value. In the digital field, we need such a middleman too — to guarantee that advertisement on the website will be visible to users and real people, not bots, will click on it. Blockchain makes intermediaries unnecessary. It gives both sides precise information about whom, when and for how long viewed an advertisement on the site and how many real users clicked on it. Therefore, both the site owner and the advertiser will be secure: they won’t need a middleman and spare their money.
Reducing the payment complexity. In the current state, you can’t make a transaction without interaction with payment systems such as PayPal or Stripe. These systems take a transaction fee. Therefore, microtransactions (like paying a few cents) are unprofitable because the fee will be bigger than the payment itself. With the blockchain transactions of every scale are possible and it opens very interesting opportunities for digital marketing (like add-free content purchasement).
No bots. The negotiation between the client and the executioner often needs a verification. You can’t be sure that someone is a real person unless you have a confirmation. With the blockchain technology every user can safely store his personal information without a threat that his data will be somehow used against him.
Security for the data storages. Marketers and site owners could use blockchain to store great amounts of their clients’ personal information. The data is spread all around blockchain and, therefore, becomes unavailable to the third party.
Accurate targeting. Blockchain gives marketers the knowledge of what the customers like, how do they behave and what would affect them the best. Analyzing and using this information brings digital marketing to a new level of accuracy.
Blockchain technology benefits
· Transparency. Everybody has access to every change made in a blockchain and the cheating is impossible.
· Directness. The third party is not involved in transactions, saving money to all the participants.
· Clarity. The data, provided by a blockchain is clear, prompt and available to a wide audience.
· Speed. All the transactions are fast and performed with low fees.
Blockchain for influencer marketing
The quantity of blockchain-based apps grows exponentially. The potential of the blockchain technology is almost infinite. It is already used for verification systems and for collecting virtual kitties. SocialMedia.Market, the first decentralized platform for influencer marketing campaigns is also based on the blockchain. The system uses a local cryptocurrency and Smart Contracts to resolve issues of influencer advertising market. SocialMedia.Market provides influencers and advertisers with a secure and transparent marketplace for negotiation and cooperation.