Blockchain. On the surface level, people associate blockchain with buying and selling cryptocurrencies, but it’s much more than that. Even if you’re not planning to implement cryptocurrency as a payment method just yet, knowing the concepts of blockchain is still important because it’s changing the digital marketing industry. What is blockchain? This makes it possible to process transactions without the need of a third-party marketplace. Consumers can control content As a marketer, you don’t want to hear this, but consumers don’t want to see ads all the time. However, since blockchain can be used to process transactions, malicious advertisements could potentially become an issue. Blockchain technology is making this possible. Conclusion Blockchain is almost always associated with processing cryptocurrency payments. How is your company preparing for digital marketing changes associated with blockchain technology?
Cryptocurrencies have been a hot topic lately to say the least.
You probably heard about Bitcoin years ago—the most popular cryptocurrency with the most media coverage. In the early days, it was primarily used for transactions on the dark web.
But today, cryptocurrencies have evolved and are starting to gain traction.
Everyone knows someone with a cryptocurrency story. Either a friend, family member, or a friend of a friend invested in Bitcoin years ago and made a fortune off it.
Or maybe you’ve talked to someone who regrets selling too early before some of the most recent surges took place.
That said, I didn’t create this guide to spark a cryptocurrency debate. Everyone has an opinion on this method of payment, and I don’t want to get into all the pros and cons.
Instead, I want to focus on one specific area that makes this technology work.
On the surface level, people associate blockchain with buying and selling cryptocurrencies, but it’s much more than that.
As a marketer, you need to recognize the latest trends and understand how blockchain technology works.
It will potentially impact your business today and in the future. It’s in your best interest to start educating yourself now.
Even if you’re not planning to implement cryptocurrency as a payment method just yet, knowing the concepts of blockchain is still important because it’s changing the digital marketing industry.
Here’s what you need to know.
What is blockchain?
Let’s start with the basics.
Blockchain technology can be compared to a shared ledger or an open record system.
These records are used to keep track of different transactions. There are multiple uses for the records on file.
As I said before, cryptocurrency is what comes to mind first. But blockchain can also be used to keep track of data such as home records, voting records, and medical information.
Each transaction is segmented by blocks, hence the name.
These blocks get verified by other users within the system. Blocks cannot be changed once they are verified.
The permanent blocks become added to a chain of other blocks that have already been validated as well.
It may sound a bit confusing, but here’s a great visual representation of the way blockchain works:
Right now, people are constantly buying and selling goods on the web. You might be one of those people.
But let’s look at third-party marketplace websites such as eBay.
Marketplaces turn a profit by charging buyers and sellers fees to use their platforms. If you buy something on eBay, the platform will use your bank and the seller’s bank to verify the transaction.
They will also confirm that the buyer and product actually exist.
Blockchain technology allows buyers and sellers to cut out these middlemen. This makes it possible to process transactions without the need of a third-party marketplace.
There won’t be any banks involved or transaction fees associated with the purchase either. Neither party will have to worry about exchange rates, even for international purchases.
It’s supposed to be a safe and fast way to make transactions. Blockchain is the backbone behind peer-to-peer electronic payments.
The first blockchain was created when the first cryptocurrency was created.
The software is open-source, allowing anyone to see the coding and make modifications to it. Next, different people and companies came out with different versions of blockchain without using the original coding.
Any user can see transactions made with blockchain.
They are visible to everyone, even when completed between two people. While the blockchains are visible to anyone, the identities of the users can remain anonymous:
Algorithms can be written to automate the transactions. This is similar to the way you pay a Spotify subscription each month with your credit card.
Now that you understand the basics of how blockchain works, I’ll show you how this technology is being used to revolutionize the digital marketing industry.
Middlemen in digital marketing can be eliminated
Blockchain technology makes it possible for advertisers to avoid middlemen.
Right now, marketers go through third parties to handle their advertisements.
Let’s go through an example.
Let’s say a company wants to offer banner advertisements on its website. But it doesn’t want to sell its ad space to just anyone.
Ads linking to low authority or sketchy businesses won’t add credibility to your website.
How does this company proceed? It goes through a platform such as Google. In this case, Google will act as the middleman.
By participating in Google Adsense, the company is assured that it will be connected only with credible businesses that want to buy advertising space.
This process makes both parties feel secure about the ads.
The site selling the space knows it won’t have any malicious content from unreputable brands being displayed on its pages. Furthermore, the company buying the advertisement knows that…