How Blockchain Technology Will Transform the Marketing Industry

How Blockchain Technology Will Transform the Marketing Industry

Blockchain
July 14, 2020 Editor's Desk
549
There are no areas left in the modern business where blockchain enthusiasts will not attempt to utilize the technology. Distributed ledger technology is utilized in logistics, manufacturing, games, and facial recognition services. And although many projects cannot provide anything qualitatively new except for the principle of adopting blockchain, some projects manage to demonstrate their practical
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There are no areas left in the modern business where blockchain enthusiasts will not attempt to utilize the technology. Distributed ledger technology is utilized in logistics, manufacturing, games, and facial recognition services. And although many projects cannot provide anything qualitatively new except for the principle of adopting blockchain, some projects manage to demonstrate their practical benefits. Notwithstanding the illusion that marketing/advertising and blockchain tech are completely unconnected, some startups manage to utilize some of the advantages of blockchain technology in solving marketing problems.

Although for most people, blockchain is actively connected with cryptocurrencies, these are not solely correct representations. Instead, it is DLT that has allowed cryptocurrencies to survive and not vice versa. The technology itself is a chain of blocks with data that is sequentially added in real-time and collected on all network members’ devices. Each transaction, each addition of data to the chain, needs confirmation from all participants. This reduces the likelihood of falsification of information on the chain. It also preserves it well from external interferences, as even if 90% of all devices fail, the data will remain in its original form for the remaining 10%.

The second advantage of blockchain that can be implemented in the marketing industry is the elimination of intermediaries. According to multiple sources, most advertising revenue persists in the hands of monopolists like Google and Facebook. Although such companies lead an honest policy without misleading consumers, something that many little-known sites do, operating with them costs a lot of money for advertisers.

An alternative and solution for this problem is blockchain. Due to the transparency of the technology, the consumer is always sure that their budget will not be utilized on bots. Advertising will be placed on the earlier agreed resource, and the service will be provided in full. At the same time, the client does not spend money on intermediaries because the blockchain enables direct interaction between the consumer and the contractor. All processes from the execution of work to payment remain wholly transparent and controlled.

Besides, blockchain enables you to spend the funds only on real people and potential consumers. Each participant in the network has their digital signature, which confirms that they are not a bot or machine algorithms, but a real person. Thanks to an exceptional identification system, robotic interference is eliminated in the blockchain ecosystem.

Another benefit of utilizing blockchain in marketing tasks is the capability to operate with smart contracts. The ERC-20 protocol developed on Ethereum gives the ability to use an entirely new type of agreement in transactions: smart contracts. At the time of the creation of the contract, it will symbolize the requirements and conditions of the work performed.

Moreover, the program monitors the fulfillment of the conditions and, upon completion, collects a reward. This type of relationship is entirely safe, as it protects both the client and the contractor from any fraudulent activities. This is what the marketing industry has been missing for a very long time.

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