Representation of the 3 Reasons Why Blockchain Should Be a Part of Marketing
Let’s examine the three main explanations for why blockchain is rapidly getting widespread adoption in order to comprehend how it will alter the marketing landscape.
- Decentralization is first
One (or more) entities are designated as the server in a centralized or client-server model. You (the client) must communicate with the server in order to receive the information. For instance, using the internet to transfer money to someone requires the use of a middleman, such as a bank.
The centralized approach is vulnerable to numerous threats, such as data leaks, in addition to the addition of a middleman.
A P2P network, on the other hand, is autonomous. The information is not hosted by a singular entity. In actuality, as was already seen, each node in the network saves the data locally. As a result, you can send money straight to someone without going through a middleman.
- Impermanence
The immutability of records provides protection, which is the second factor. The information contained in a block cannot be changed once it has been confirmed. Even if someone attempts to forge a block in the blockchain, the data and the hash of its prior blocks will be significantly altered. It cannot be verified with any other node because the entire blockchain has altered at this point. Anyone attempting to hack the blockchain would have to change data at every server, which is nearly impossible. - Objectivity
All blockchain users have access to the events that have occurred because blockchain is a distributed digital ledger. Although this aspect might cause some people to scratch their heads, there is no need to because even though blockchain users can access the transactions, user identities are still kept secret.
Observations on Smart Contracts
The phrase “smart contracts” will appear frequently in the following section. So let’s first grasp the idea of smart contracts before we see how blockchain will revolutionize marketing.
IBMdescribes smart contracts (also known as cryptocontracts) succinctly as, opens a new window
Code snippets known as “smart contracts” run autonomously when certain criteria are satisfied and are stored on a blockchain.**
**The terms of the agreement between the buyer and vendor are frequently contained in smart contracts, which are frequently self-executing, trackable, and irreversible. They don’t need intermediaries because of their ability to execute on their own.Businesses can use a smart contract, for instance, when working with a consultant, which will immediately release the money after the successful completion of the deliverables. In this manner, extra steps like billing are not necessary.
8 Blockchain Strategies and Best Practices for Marketing
Representation of the 8 Blockchain Strategies and Best Practices for Marketing
Real estate, journalism, retail, healthcare, and legal services are just a few of the sectors that blockchain technology is poised to upend. And those are just a few examples! Large companies like IBM, Microsoft, Oracle, Intel, and Apple have already seen the promise and begun to get involved with blockchain.
Let’s examine the blockchain strategies and best practices that are revolutionizing the marketing landscape in light of all the hype regarding the technology.
Influencer marketing, first
To reach a larger audience, brands are significantly relying on celebrities and micro-influencers. However, influencer marketing has a bad reputation because of issues like the inability to monitor return on investment, lack of transparency, and fake engagement and followers.
This issue can be successfully resolved by blockchain by integrating smart contracts into the network. Smart contacts will make the payout easier once certain tasks have been completed or the intended outcomes have been achieved.
The success and legitimacy of the influencer can also be confirmed using technology.
As an illustration, the Ethereum-based influencer marketing tool Socialmedia.marketOpens a new window allows advertisers to collaborate with influencers and provides a system for resolving disputes.
One example of a network in this market is indaHashOpens a new window. Another is PatronOpens a new window.
- Affiliate Promotion
6.4 billion USD will be spent on partner marketing in the U.S. alone, predicts StatistaOpens a new window. Sadly, despite such investment, companies still run into issues like working with shady affiliates, wasting money on useless websites, and paying high commissions to affiliate networks.
The following are some ways that blockchain can reduce this financial waste and introduce order to affiliate marketing: - Make payments easier by using coins.
- Affiliate networks typically defer payouts until the minimum payment threshold is met, whereas blockchain-based products can function without such restrictions.
- Use smart contracts to establish responsibility and lessen ad fraud. That implies that monitoring pixels will no longer be necessary.
An illustration of a blockchain-based offering in this market is coupit. Ref Token Opens a new window, HoquOpens a new window, and opens a new window all.
