If you’ve kept up with recent news, you know that Blockchain Technology has become a useful tool over the past few years. Blockchain became relevant by offering a decentralized ledger for use in cryptocurrency transactions, Bitcoin. These public ledgers record and distribute decentralized forms of any transaction across computer locations, ensuring transparent and verifiable data.
Blockchain is stigmatized for use on the cryptocurrency and financial sectors, but what people didn’t know is that the technology can be optimized for other industries, such as social media and digital marketing.
This technology works for any kind of data transaction, not only monetized data.
How does Blockchain Technology work?
Before we can understand the impact Blockchain Technology has on social media and digital marketing, we need to know what it is.
Blockchain is an advanced technology that offers increased security reassurance by not needing a central institution to store records. Instead, it is a list of public records, known as blocks, linked within a P2P network of computers. Each new block contains a timestamp, the updated transaction data, and a hash pointing back to the previous block’s data that links the two blocks together. This creates the blockchain. The newest block of data, also containing the previous block’s hash, is then unable to be altered. By having a multitude of copies existing among the network, it makes the data verifiable.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”- Don & Alex Tapscott, authors Blockchain Revolution (2016)
How will Social Media and Digital Marketing be Affected?
If you want to take the next step towards the future, delving into Blockchain technology is how to do it. Data is needed for marketers to understand and reach their consumers more. Social media and digital marketers will no longer have to outsource to third-parties to verify data. Instead, they will be able to validate their own data through first-party verification. Since all records are public on a decentralized network, all changes and information are transparent.
Here’s how blockchain will change marketing:
Get rid of the Middleman – The use of blockchain technology will eliminate the need for a middleman. Rather than purchasing through third-parties, you will be paying the consumer for their personal data.
Prevent Ad Fraud – Due to the transparency of blockchain technology and the secure decentralized network, social media marketers will be able to identify and purchase better ad buys. Since each block on a blockchain is secured and verified, marketers will be able to verify the bot data and paid-for clicks data from the verified consumer data when purchasing ads.
Smart Contracts: Digital marketers can opt-in to Smart Contracts, a code within a blockchain, that tracks the terms of a contract. The smart contract will complete deals once the agreed-upon terms are met, and the funds are then allocated. These contracts make global transactions easier for marketers by ensuring timely pay and secure contracts.
Better Targeting – The use of blockchain prevents the ability to store personal information within a central institution. Information is instead stored within the blockchain. This anonymity allows users to instead provide personal information to those marketers willing to buy the data. By purchasing data from consumers, the information you receive will be more accurate and better targeted towards people interested in your brand. Digital marketers will no longer need to get consumer data through third-parties.
What does this mean?
With blockchain technology, marketers can gain more accurate information from the consumers directly interested in their brand. This will not only increase their ROI but also allow them to target ads to potential consumers based on verified data. Marketers interested in global transactions will feel at ease knowing that implemented smart contracts will allow for a secure deal.
Guest Post By: Nick Rojas
Nick Rojas is a self-taught, serial entrepreneur who’s enjoyed success working with and consulting for startups. Using his journalism training, Nick writes for publications such as Entrepreneur, TechCrunch, and Yahoo. He concentrates on teaching small and medium-sized enterprises how best to manage their social media marketing and define their branding objectives.