Blockchain in Digital Marketing - Is it the Future?
You may have heard about blockchain and its transformative potential, but it can be hard to understand how this technology will impact your job. Blockchain is a secure method of storing data and tracking and managing digital interactions.
It's most commonly associated with cryptocurrencies like Bitcoin and Ethereum, but it has applications in many other industries as well. Many businesses are already using blockchain technology to track their supply chains or conduct transactions more quickly than they could before.
Blockchain can also improve digital marketing efforts by helping us verify information more efficiently and securely than we could before
How Does Blockchain Work?
Blockchain is a decentralized, peer-to-peer technology that enables people to share data without the need for an intermediary like a bank or government. It's a public ledger of transactions encrypted and stored in nodes on its network.
It means it can't get altered once it gets recorded. Each block includes information about the previous block, making it impossible to go back and alter any of the data in previous blocks. In addition to being tamperproof, this makes blockchain irrevocable as well!
This irrevocable nature of blockchain technology helps cryptocurrency markets to operate with ease. It ensures that the calculations and stipulating cryptocurrency prices happen based on the market's forces. Thereby, people can generate cryptocurrency value for themselves.
How does this apply to digital marketing? Blockchain offers marketers a way to protect their data from cybercriminals. It helps to store sensitive information on servers that get completely encrypted with cryptographic keys (for example passwords).
It prevents hackers from accessing your valuable information. It allows you access from anywhere in the world without having physical access anymore.
Another advantage of running your whole business through blockchain technology would be eliminating middlemen. They often charge fees for services rendered, such as banks or payment processors. It ultimately costs businesses money each year, so why not save some cash while making your business run smoother?
Security and Privacy with Blockchain
It is where blockchain comes into play. The concept of blockchain is fairly simple. It’s a decentralized database or a shared ledger that can get accessed on the internet by anyone who has permission.
It's like Google Docs for financial transactions. Each time someone makes a change to the ledger, it gets verified by multiple parties before being added to the chain (hence why we call them “blocks”).
By doing these thousands of times with each transaction, you have an unchangeable record of what happened at each step. All without having one central authority controlling it all or deciding which changes are valid and which aren't.
All participants can see what was changed, and they don't need any outside verification system either. The network operates as its accountability mechanism!
Decentralized Data Storage and Analytics
Blockchain can get used to store data on a server. In this case, the data is encrypted and can only get decrypted by the data owner. It ensures that all information stored on the blockchain network is private, secure, and decentralized.
Another benefit of using blockchain technology for digital marketing is its ability to provide transparency. It is specifically in regards to who has accessed specific files at any given time.
Each transaction within an organization or business gets recorded publicly on a shared spreadsheet as part of its record-keeping process. Any changes made by other users will be visible.
Building Trust with Consumers
Blockchain technology is the perfect solution to this problem. Blockchain gives us a transparent system where everything gets recorded, and all transactions are visible to the public.
It will allow brands to establish a reliable and trustworthy relationship with their customers. It provides them with 100% transparency.
Blockchain has the potential to help build trust with consumers because of its unique features:
- Transparency - every action on the blockchain can get viewed by anyone as it’s an open-source platform.
- Immutability - once data gets added to the blockchain, it cannot get altered or removed by any person or entity (including governments). It means that you can always verify whether an individual’s identity is real or not without any doubt!
Blockchain For Digital Marketing
With blockchain, advertisers can verify the authenticity of digital ad impressions and clicks. They can also ensure that they only pay for real human traffic instead of bots or fraudsters. It means a significant reduction in wasted advertising spend and increased inventory quality.
Another way blockchain technology is getting used to enhance digital marketing is by securely storing data and metadata. It can include video views, shares, likes, etc. All this is in a decentralized manner across multiple parties on the network.
It reduces costs associated with storage space and duplicating efforts when working with centralized databases such as Google Drive or Excel sheets. On these, one person has to manually enter all the data into another system for analysis purposes.
Blockchain can also protect user privacy by ensuring that their personal information isn’t shared unnecessarily without their consent.
It has Great Potential for Digital Marketing
As we move into a new era of digital marketing, it is important to understand how blockchain can benefit the industry. While there are many ways that blockchain technology can impact digital marketing, there are a few key ways in which it can get used.
One of the biggest problems facing marketers today is data security. It is not just from hackers but also from other marketers who may be using your data for their gain.
Blockchain technology allows for increased control over who has access to what information. It proves this access gets obtained legally if someone were ever to question whether or not they had received consent to use your data before sharing with others who need access (like ad networks).
It will ensure greater transparency when managing consumer trust across all channels while protecting against fraudsters who might try stealing customers' personal information under pretenses.
Conclusion
The technology is still in its infancy, and it will take time for blockchain to become mainstream. As of now, it's easy to see how blockchain can get used to enhance the customer experience with greater transparency and security. However, there are some concerns about its effect on data privacy and user behavior tracking.
If you want to learn more about the role that blockchain plays in digital marketing today, keep reading more content to enrich your knowledge.