Blockchain in Marketing Strategies

In simple terms the definition of a blockchain is decentralized digital ledger distributed across the globe which is it is a database that spans multiple computers or nodes. Every verified transaction (data exchange) is recorded in blocks. Each block is comprised of the details of the transaction along with a timestamp as well as the hash cryptographic of the previous block.

Instead of relying upon an uncentralized system, blockchains use the Peer to Peer (P2P) network to store data in several places. Each location is known as the node and keeps a copy of the data from the initial block.

Each time a record is added to the database is updated across all nodes of the network. The transactions are checked by the network’s users through solving math problems. After the block has been verified, it is added to the chain of blocks. A verified block isn’t able to be changed, and this is when the immutability component of blockchains is crucial.

1. Decentralization

In a central or client-server model. There is one (or more) entity referred to as the server which hosts all of the data. For instance, if you require money to someone over the internet, you’ll have to do it through a middleman, such as an institution like a bank. In addition to the presence of middlemen, the central model is susceptible to numerous risks, such as leaks of data.

However the P2P network is not centralized.

There’s no one host for the data. As we’ve seen earlier, each node on the network stores data locally. Therefore, if you wish to transfer money to someone else, you can do it directly , without having to pass it through intermediaries.

2. Immutability

The second is security due to the invulnerability of records. When a block has been verified that the data contained inside it isn’t susceptible to alteration. If someone attempts to manipulate a block within its blockchain system, they will alter the data, as well as the hash of prior blocks.

Because the entire blockchain has changed and cannot be verified by the other network nodes. Anyone who attempts to hack the blockchain will need to modify the records of every point, making it almost impossible.

 3. Transparency

A brief introduction to Smart Contracts In the next section, we’ll frequently see the term smart contracts. Before we look at how blockchain can revolutionize marketing, let’s first understand the idea behind smart contracts. IBM clarifies smart contracts (also called cryptocontracts) as follows: “Smart contracts are code lines which are saved on blockchain .

Smart contracts tend to be self-executing, trackable and irrevocable. They also include the terms of the contract that the buyers and seller. They are self-executing and eliminate the need for intermediaries. For instance when using a consultant firms can make use of smart contracts that immediately release the funds when the consultant has completed the deliverables. This means there is no need to take additional procedures like invoicing.

This is just to mention some! The big names like IBM, Microsoft, Oracle, Intel, Apple have already realized the potential of blockchain and began to move into blockchain. With all the hype about blockchain technology, let’s examine the strategies for blockchain and best practices revolutionizing the way that marketers market.

1. Influencer Marketing

Brands are investing heavily into micro-influencers and celebrities to get the message of their brand to larger population. However, influencer marketing has negative reviews because of issues such as difficulties in tracking return on investment, the lack of transparency, false followers as well as engagement.

Blockchain technology can address this issue through the introduction of smart contracts to the ecosystem. Smart contracts will allow for payment after the fulfillment of certain actions, or following the delivery of desired outcomes. The technology may be used to check the effectiveness and legitimacy that the person who is influencing you.

For instance: Socialmedia.market is an Ethereum-based influencer marketing platform which allows advertisers to collaborate with influencers, and provides an option for dispute resolution. indaHash as well as Patron are two platforms that operate in the same field.

 2. Affiliate Marketing

However, despite this investment but, businesses, unfortunately, encounter issues like having to deal with untrustworthy affiliates or sites that aren’t worth their time, and paying huge fees to networks that affiliate with. Blockchain technology can stop this waste and restore order to affiliate marketing in these ways:

Utilize cryptocurrencies to speed up the process of making payments.

The tracking pixels be redundant.

3. Loyalty Programs

Members join loyalty programs because they’re loyal to your brand or trying to find discounts. A typical American household is a member of various loyalty programs, yet only uses 12 of them. The issue with loyalty plans for consumers is in the process of redemption of points. Customers have to keep record of the various loyalty programs and then redeem them prior to the time that the offer is due to expire.

Therefore, instead of creating a win-win scenario for both customers and brands, it’s actually the reverse of that because the companies are also losing money due to the risk of a liability. The blockchain-based loyalty programs can help solve this issue through the introduction of a frictionless system. Since blockchain is decentralized, different brands can work together by allowing customers the ability to redeem loyalty points for any brand in the network. Since loyalty points are transferred in real time, users can cash them out whenever they want.

In this means that everybody in the ecosystem gains. Examples: Loyalcoin, Sandblock, and KeyoCoin are just a few examples of loyalty programs based using blockchain technology.

4. User Data Protection

As data breaches become more frequent, companies need to be proactive in protecting their customer’s information. The GDPR’s introduction in the year 2018 has brought strict guidelines for companies in the field of collecting and using data from customers. Thus, companies are looking for solutions to increase the security of customer data. Blockchain can help in this case, allowing individuals to choose to sell their data to brands they select.

Examples: Killi is a blockchain-based solution that restores the power to the user through the ability to sell their information or take surveys and receive a fee for it. Similar to uPort, uPort enables users to identify themselves on Ethereum and also manage their data.

5. User Rewards

“We live in an world of attention and it is a matter of capturing viewers’ interest, you’re losing it. Brands literally pump out huge amounts of cash in online advertisements, so that the worldwide digital ad spending is expected to increase from 333.25 billion dollars by the end of the year. Blockchain technology can help you get the most from your investment by displaying your advertisements to the people who are most interested in what you offer. For instance, a blockchain-based web browser called Brave lets users select the kind of ads they view.

Brave has also introduced Basic Attention Token (BAT) which is an Ethereum-based utility token that is distributed between publishers and users in accordance with the ads they view.

In essence, advertisers are paying consumers for their attention and making sure that the budget for advertising is spent efficiently. Examples: Products like Kind Ads and Impetus One provide features in the same way.

6. Ad Fraud Prevention

In the past advertisers have suffered many dollars due to frauds on ads, including fraud in traffic and domains. Domain spoofing malvertising (a term that is a portmanteau for “malicious advertising) and many more. Additionally publishers scam advertisers by displaying ads on questionable websites that generate many visitors but produce no results.

One method to fight frauds in advertising via blockchain is to eliminate intermediaries i.e. the networks and preserving the advertiser publisher, and the customer. This can lead to greater transparency. Examples: Rebel AI, Lucidity and tribeOS are a few of the companies that use blockchain to stop the problem of fraud in advertising.

7. Blockchain-Based Social Platforms

The social media networks have accumulated billions of users in the past decade. While social media has provided users numerous chances to interact with family and friends, their favorite brands, peers and even celebrities but it comes at a price of their personal information. Because ad sales are the main revenue source of social platforms, they monitor every single action to increase their ability to target. This, coupled with the recent leaks of data has led to a greater caution among users in making use of social media.

Examples: Blockchain-based social media platforms provide control back to users. Platforms like Peepeth and mastodon.social solve the exact similar issue. Although I am of the opinion that these solutions might not provide any benefits for brands at this point, Steem is a social blockchain that allows you to build apps using the platform, make money from your content, and develop communities.

Applications like Steemit (Blogging platform), DTube (Video platform) and Utopian (Enables people to finance open project that are open source) are built on Steem.

8. Social Commerce

Social commerce has already sprung up and the next major disruptor for the industry of e-commerce will be blockchain. Blockchain is similar to blockchain in the field of e-commerce, in terms of stopping fraud, speeding up transactions, and ensuring that the customer’s identities private. Examples: In addition to these options, E-commerce is now able to benefit from different solutions.

AT&T has partnered in partnership with Microsoft along with IBM to create a range of blockchain-based products, which includes solutions that guarantee the authenticity of the products. Marketplaces for E-commerce that are decentralized and platforms like OpenBazaar, GAMB, Bezop and Eligma allow vendors to create online stores and become the ultimate decision makers for the online store they have created.

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