Interest in blockchain technology is growing exponentially and new applications are emerging almost on a daily basis. While it still takes time for the disruptive power of this technology, on which cryptocurrencies are based, to unfold, digital marketers, in particular, should follow its development. Here, we explain the application examples of how the blockchain can be used in digital marketing.
Blockchain is currently one of the most important trend topics in the digital industry. Ten years ago, the world’s first cryptocurrency was developed under the pseudonym Satoshi Nakamoto: the Bitcoin Core, as the first form of Bitcoin. The fact that Nakamoto developed a currency as the first proof of concept for blockchain technology has meant that the financial sector in particular has so far dealt with this issue. In fact, the application possibilities are much more extensive than we can imagine at the moment. Interest in blockchain is growing exponentially and new blockchain applications are emerging almost on a daily basis.
Blockchain advocates are already talking about Internet 3.0, which could revolutionize all industries and will have a massive impact on our social lives. Of course, this does not happen overnight. But if the bank is no longer necessary as an intermediary, why shouldn’t this also apply to other areas? The blockchain stands for transparent chaining of data records, which makes classic inspection bodies superfluous. In this way, not only can currency systems be replaced, but also complete media and marketing processes.
What Is The Blockchain?
As with Bitcoin, all other digital currencies are based on a common technology: the blockchain. This is a digital ledger system (cash book) in which transactions are recorded. This means that individual parts (“blocks”) are firmly and inseparably and in the end cannot be manipulated into a chain (“chain”). The Bitcoin payment system is also a very exciting field, but above all, it is the technology behind it that makes the disruptive trend so revolutionary. The idea of a decentralized network that is not controlled and managed by one or more specific organizations can be decisive for the future of many industries. Because blockchain means openness, transparency, and democracy. It is the radical application of open source ideas. In addition to the financial industry, blockchain technology could also free distrust, prejudice, and deception in the digital industry.
What Potential Does blockchain Have For Digital Marketing?
At the beginning of the digitization, the network was open and democratic for everyone. The Internet 1.0 was used in particular to enable researchers to exchange information. Functions such as e-mail and the WW also existed at that time via an open, democratic protocol level. With the commercialization of the Internet after 1995, the basic services of the protocol-based Internet were no longer sufficient. Companies were thus found to offer the services requested e.g. Google, Facebook, and Amazon, which are currently among the most valuable companies worldwide. Their monopoly position is increasingly unsettling people, companies, and politicians with enormous challenges.
This increasing uncertainty also concerns digital marketing. Currently, marketers do not have it easy when, for example, Facebook scandals regarding privacy and data security further fuel skepticism about the digital advertising landscape. Because people no longer have any control over the tracking of their data. The blockchain has the potential to regain people’s trust.
How Can Marketers Use The Blockchain Technology in Digital Marketing?
The options for how people can use blockchain technology are almost as diverse as the options for using the Internet. At this point in time, no one is able to predict how the blockchain-based, decentralized system could revolutionize the communications industry and thus marketing. There are many ideas, but concrete applications in the area of marketing and advertising are still rare. As the past teaches, it will be early adopters, creative thinkers, and pioneers who will and must find use cases.
Below we present are application examples for blockchain technology in digital marketing :
1. Better Data Management And User Privacy
Data is the lifeblood of the digital advertising ecosystem. Those who have data have an advantage over those who have no data. It is therefore not surprising that there is increasing research into how the blockchain can help to master data challenges and problems. The data stored in the blockchain shows exactly and with a complete history of who did what and when.
2. Direct-to-Consumer Digital Marketing
Due to the increasing fear of data misuse, among other things, many brands are now looking for direct connections to customers and want to bypass the intermediate instances. With the help of blockchain, this could succeed. It offers a way to manage transaction data in a highly decentralized manner. The blockchain eliminates the need for an intermediate instance in transactions. The decentralized system of the blockchain technology creates a direct connection between the consumer and the company or publisher by selecting the amount of data that you want to share with the advertiser.
3. More Engagement And Better Targeting
For years, advertisers and the platforms they work with have been looking for options and data that will enable them to deliver the right content to the right user at the right time, thus persuading the user to take action. Blockchain technology could possibly serve as the basis for new targeting and interaction models.
Harnil Oza is CEO of Hyperlink InfoSystem, one of the leading app development companies in New York and India, having a team of the top app developers who deliver the best mobile solutions mainly on Android and iOS platforms. He regularly contributes his knowledge on leading blogging sites.
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