Transparency. In today’s digital world, businesses and individuals, governments and consumers, all want to KNOW information; and in our paperless society, a society where too much data can be simply deleted, we are all looking for ways to maintain information, including the path of revision. This is where blockchain comes in, recording anything of value, creating a permanent file of what has happened in the past (even if it is only 5 minutes ago).
Blockchain In a Nutshell
The block is a public ledger that has been used to record all bitcoin transactions; it is also useful to record any other valuable data using an open & distributed record to keep track of transactions (anything from medical records to cryptocurrencies). Transactions are put into blocks, verified by users by completing a math problem. Once verified, it remains a permanent, unchangeable, block of information, along with the previous blocks, which is tracked by all the users included in the chain (hence the name, blockchain).
The communication and collaboration involved in blockchain means that you no longer need a middle man, who makes things more expensive and complicated. These additional players, who may not have any part in the actual transaction, are often just participating to provide access, regulate or administer transactions. This complexity disappears with blockchain. Information is permanent and cannot be manipulated.
Manipulation Not Allowed
Blocks are marked with a unique hash. The previous block’s hash is referenced in the new (revised information) block, creating a chain. If the previous block’s hash is changed, a new hash is created, and the old blocks are void since they are no longer referencing a valid block.
When someone wants to add a block to the chain, a validator in the network must verify the data and solve a mathematical equation to add it, called mining. Once the block has been added, everyone in the system (parties to the transaction) gets a copy. This means that everyone on the network has access to a single source, and not one person has authority to change what has already occurred. Recordkeeping is at the core of ANY business, so blockchain can help ANY business.
Blockchain for Uses Marketing
Now that you understand a little about blockchain, you may ask: “How can it help my marketing efforts?”
- Transparency crucial for marketers—how much money are we spending?
- Control Ad fraud—new level of security. Tampering much more difficult since blocks are connected
- Storing digital assets, obtain licensing rights for all types of content
- Improve online payment processing and delivery verification
- Improve customer trust (Minimal personal information is shared with use of keys in blockchain)
- Increased efficiency and speed. Less manual involvement, quicker responses
- Data Quality:
- Accurate data on customer’s journey can help improve marketing channels/methods/strategies
- Reduce the customer disconnect (customer trust increases with better security)
- Create rewards programs, monitor use of programs, authenticate agreements with customers
As is true of any new technology, it is important for marketers to leverage what they know, what they have access to, and the best use of the platform for a specific company or industry. Before you jump in with both feet, consider how your team can use blockchain without imploding what you are doing now. The transparency, security, and depth of customer information which can be obtained with blockchain makes it attractive to marketers…and if it saves you money, why not invest in it?
Marketing Technology and Implementing Blockchain
With experience in marketing technology, the team at Digital Impact Agency can help you navigate to process of adopting blockchain as a marketing tool. We are a HubSpot Certified Partner Agency, and staff Certified Inbound Marketers to help you create strategies to meet your business goals and maximize your ROI. Let us help you create a strategy to leverage your established processes while incorporating new advances to develop a new—and successful--approach to marketing.