Does Blockchain sound Chinese to you? Learn what it’s about because it’s coming strong
You may have already heard it because Blockchain, for some time now, has been going strong. But… What exactly does it mean? Why are we going to talk about it on the Microbio blog ? Is it that important? What does it have to do with advertising? And with digital marketing?
Index:
- Blockchain: the technology of the future?
- How does Blockchain work?
- Why Blockchain could be great in Digital Marketing
- It is something so new that it is normal to be somewhat lost.
But we are going to try to quickly and simply explain what Blockchain is and why, as a marketing professional that you are, you should include it in your next digital strategies.
Blockchain: the technology of the future (or so they say)
Blockchain translated, means chain of blocks , and consists of a cutting-edge technology that allows 100% secure data transfer.
It was originally invented to support the digital currency bitcoin : the first decentralized cryptocurrency not issued by a central bank. Those who buy and pay with bitcoins operate through a public network where all nodes keep a copy of each transaction.
But, as specialists on the subject point out, Blockchain , together with other technologies such as the Internet, can be applied to any transaction that requires verification.
The operation is as follows.
The Blockchain development services is like an immense registry (database) where everything you want to establish is recorded with enormous security in a stable way and without a mediator, and where the information collected is distributed among several participants. In other words, it is an immutable ledger that contains the complete history of all transactions that have ever been executed on the network.
The data is in a universe of computers, not in a ‘cloud’, which make up a network of points called nodes or servers connected through a P2P (peer-to-peer) system, which speak to each other using the same language – protocol – agreed upon between them to confirm that a given data is verified and to be able to carry out new operations.
There is no single Blockchain. There are many blockchains. As many as you want. And they can be interconnected with each other.
The message they transmit is known as a token (symbol, signal or token), which is the representation of the information hosted by the network. This information travels encrypted , so it can be distributed without revealing its content.
Token transfers are grouped into blocks that are generated from time to time. If, for example, there is a new transaction that has not fit in a block, then it must be included in the next one, which is inextricably linked to the previous one. And so on (hence the name blockchain).
This infrastructure makes things very complicated for ‘cybercriminals’. To steal tokens or disrupt the Blockchain, they would have to compromise many hundreds or thousands of computers at a time.
Therefore, for practical purposes, this decentralization (lack of intermediaries) and encryption make transactions resistant to manipulation.
Blockchain is a technology that facilitates the transfer of digital data securely.
In short, this technology serves to speed up, reduce costs and transfer digital data in a completely secure manner and without intermediaries. Something very interesting not only for the economic field, but also for many other fields, including the one at hand.
How Blockchain works in 5 steps:
- Block: set of transactions.
- Verification: the computers participating in the system evaluate the transactions and, when they reach an ‘agreement’, they verify it.
- Hash: each transaction block verified is temporarily ‘sealed’ with a ‘cryptographic hash’.
Why Blockchain Could Kill It in Online Marketing
Although, currently, the Blockchain is used, above all, for cryptocurrency transactions – in this case, if you have a bitcoin or another, you will already be aware 😉 -, the cool thing is what is to come .
Just as the Internet revolutionized our lives and our behavior as consumers, the influence of this recent technological innovation on digital marketing and advertising is something that companies have to, first, know how to identify and, second, be able to take advantage of. and put it into practice.
These would be the most notable contributions of Blockchain in online marketing:
- Safer e-commerce: Stronger brands. And happier customers. All good, right?
Blockchain development company full confidence when formalizing economic transactions. It is the definitive goodbye to counterfeits and the fear of fraud and scams.
Thanks to this technology, it could be verified that what we buy is authentic, since, as the products would be within the blockchain, exhaustive monitoring could be done from the beginning of the manufacturing process to its final distribution.
This would put an end to the ‘little thing’ of if…, “oops, have I bought something fake?” that we have all had at some point when buying online, the trust of the brands would be reinforced, and, hey, everyone would be happy!
- With Blockchain: would trolls’ days be numbered?
The incorporation of the Internet to Blockchain technology would mean the creation of a unique identity on the network for each of us (own, secure, private and non-transferable) to use in different online operations.
In theory, this would put an end to fraud, anonymity and impersonation on Social Networks and other digital platforms that could provide space for annoying trolls who, hidden behind the screen, leave no stone unturned.
Another thing is how this affects other related issues such as privacy or the right to anonymity.
- More expensive market segmentation: but with more skill.
The debate is already on the table: how to act if the user wants to charge for offering their data to companies?
In the Blockchain universe, the rules of the game change. It represents progress towards the democratization of the Internet – or that is how it is sold – and, as each user is the exclusive owner of their data , they are also the ones who decide what advertising they want to receive based on their personal tastes .
This would put an end to intrusive advertising – or at least it would be limited, but it would also affect the way a product or service is promoted.
That is to say, if I as a brand wanted to send a specific advertising impact to a specific person, I would have no choice but to ask, and this person, if interested, would be in charge of setting a price for the data exchange and I – the company – would be in charge of setting a price for the data exchange. pay (not to the medium where the ad is displayed, but to the user) the established amount.
This, all of a sudden…, may sound strange: pay the client to receive my advertisement? But you have to see the positive side.
Taking into account that one of the fundamental pillars of marketing strategies is segmentation , for brands knowing who their target audience is is essential for their campaigns to achieve the desired objectives.
And, in this Blockchain context, market research would be more expensive, but, in return, more accurate . Furthermore, since the consumer freely agrees to be sent an advertisement, said consumer would be much more loyal than any other who receives the advertisement by chance.
Of course, due to the high cost that would entail finding customers and converting potential sales into real sales, LOYALTY would become crucial and a good part of the means and efforts of the marketing departments would have to be dedicated to it.
- More responsible brands: Now, this works like this: when we make an online purchase, we have no choice but to trust – blindly – the companies, their word and guarantees, hoping that everything goes well and no problems arise along the way.
This changes completely with this technology. No need to be nervous until you receive the order and check that everything has gone correctly and that the store has complied.
The Blockchain brings with it smart contracts that are fulfilled ipso facto as soon as the parties agree to the terms. Here, the ‘company promise’ is public.
You may be interested in this video: What is the blockchain registration system and how it can change all types of transactions.
In short, and although many of these examples are not easy to implement and, sometimes, they will not be carried out, everything indicates that yes, in one way or another, Blockchain is here to stay and to revolutionize digital marketing.
It will bring significant changes with regard to natural search engine positioning and SEM positioning, advertising on web pages, electronic commerce, the role of intermediaries, the processing of personal data of Internet users, the way in which that brands are going to relate to their customers and are going to launch their advertising impacts on them and, in general, on the lifestyle of consumers, who will enjoy an environment with greater security, privacy and freedom.