Bitcoin could be the only way many business executives have interacted with blockchain technology. Unknown to many of them, what appears as an unstable currency or business model is about to change digital marketing forever. According to digital marketing services experts, Blockchain technology is about to create a fortune for some businesses and wipe others off the transactional map in a single stroke.
What is Blockchain Technology?
To understand the effects of blockchain technology, it is important to recap how it works. It is best described as an open record or shared ledger transactional system where every transaction is approved and verified by all parties before completion. The process of public and mutual validation means that you do not need a third-party to verify on your behalf yet the transaction will be more secure and faster.
Now that you understand the principle of blockchain technology, let’s look at how it will impact digital marketing. As you will realize, the biggest beneficiary will be the customer-end of any transaction. The traditional digital marketing approach has given sellers unchecked privileges, leaving the buyer- who could be a business or individual- anxious about the outcome and with little control over what happens. Here are aspects of digital marketing that will never be the same thanks to blockchain technology.
There is a tsunami of emotions and legal battles regarding data privacy, especially on consent from customers. Apps and online platforms are collecting names, emails, search history, and user activities online without indicating where and how this information is being used. It is now clear that the use of this information does not end with the transaction at hand. Blockchain technology has come to end this abuse and return control over personal data to the real owners.
Personal data is encrypted and its access can only be by mutual consent. Internet users approve who uses the data, including its sale to third parties. Without consent, such data will be impossible to access and, therefore, unusable. Your search history remains personal information unless you approve of its sharing. The step will shield you from targeted ads that force you to make involuntary buyer decisions or form biased opinions unknowingly.
On the flip side, companies that need your information will have to pay for it. If the information on your search history or personal data shared with third parties is important for a business, it will have to pay you for this information. The business of data now loops in the real owner, eliminating abuse and making you a beneficiary of personal information.
Cross-promotional B2B Contracts
Middlemen and agencies help in setting up as well as verifying transactions or executing contracts. It causes delays and makes the transactions more expensive. Profits go to agencies instead of actual producers or businesses. The open-ledger approach by blockchain technology eliminates the need for agencies and middlemen while still guaranteeing the integrity of transactions.
According to the best digital marketing agency Singapore, the technology facilitates, verifies, and executes an irrevocable contract without needing middlemen. The contract can only be replaced by a new one that restarts the process. The ensuing smart contracts will enforce the terms and only pay once each side has fulfilled its terms. Businesses focus attention on their core business without the fear of being outsmarted by clients or middlemen.
The open ledger element of blockchain technology will change the information-sharing discussions between customers and apps or any platform that wants to use this information. As the owner of data, you can see who received your information, any modifications made, and where the information was used. Confident that companies will not misuse your information, you can now release it.
All information on who is using your data and how it is being used will be available for everyone to see. It helps to avoid unscrupulous data collectors who sell to unsuspecting third party users without consent. Data transactions will now be an open-book situation.
Authenticity and Transparency of Sources of Goods
You may have bought an item that ended up faulty because it had been used yet you did not know. Such incidences erode the confidence of a buyer in the purchase process. Instead of relying on mere trust, blockchain technology lays down the history of all transactions on a product, especially data, to give you an idea of what you are buying. In case there are uncomfortable elements of the history of the data, you can raise the issue with the seller before the conclusion of the contract. It gives you a better picture of what you are buying and its value based on transactional history.
Blockchain technology is giving more control to data owners as opposed to recipients. It also restricts what can be done with the data and by who, giving better control to digital marketing data. It has eliminated the vulnerability that arose from uncertain data usage, giving B2B and B2C transactions more confidence and predictability.