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How is Blockchain Used in Marketing?

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Blockchain technology is not as modern and new as it might seem at first glance. Its development and creation are rooted in the distant 90s, when computer science was just beginning to develop and conquer world space. Of course, over these 30 years, the community has undergone many changes, progress and incredible speed of development – thanks to this, we can observe how blockchain technologies have migrated to cryptocurrency, which every inhabitant of the planet now knows about.

But did you imagine that blockchain technology can be implemented not only with Bitcoin, but also in marketing, advertising and business promotion? Perhaps this will be news to you, but such processes are really taking place and the first blockchain marketing company has been launched a long time ago. In this article, we will be able to understand in more detail how it works and whether it is worth devoting your time to it.

What Is Blockchain?

We should deal with the origins and definitions of the question in order to understand the processes better. Blockchain can be described as follows: it is a decentralized distributed database on several nodes or computing devices. Each exchange of such data is fixed on certain blocks, and each block, in turn, contains all the necessary transaction data, which creates the concept of blockchain.

Every time a new entry is added to the database, it is automatically updated on all network nodes. Transactions are verified by users on the network by solving a mathematical problem. Once a block has been validated, it is added to the chain of existing blocks.

Blockchain marketing interdependence

Why Blockchain in Marketing?

There are at least three main reasons why blockchain marketing got the opportunity to become really popular.

  1. Decentralization
    Any business model that reaches a certain level of development must base its information on a certain server. Everyone interacts with these servers: both the management and directly the clients of this business. To access information, make a certain transaction or purchase via the Internet, you usually use the services of banking systems. Such processes are risky with information leakage, risks and a number of negative factors. Blockchain technology offers an alternative – the decentralization of information, since there is simply no single carrier of information. Each node on the network only stores information locally. Thus, if you want to send money to someone, you can do it directly, using any blockchain marketing agency.
  2. Immutability of records
    Another cardinally important aspect of blockchain participation in marketing processes is immutability. This means that once a block has been validated, the data stored in it cannot be changed. Even if someone tries to interfere with this process, he will be rather puzzled, since in order to change the information it will be necessary to go through all the blocks on which it is stored. And it will be simply impossible.
  3. Openness and simplicity
    All users in the blockchain system can have access to completed transactions, which makes this process more open, simple and understandable. Perhaps for many this will seem like a disadvantage, as someone will consider it necessary to stay anonymous. In this regard, the blockchain is also prudent – the identity of users remains hidden.
Immutability of records

Now you know the main aspects of how blockchain marketing companies work. It will be important to highlight a few advantages that can further convince you of the strength of this union.

  1. Reduced Costs
    The fact that the blockchain is inherently decentralized significantly affects the cost of its use and maintenance. You avoid unnecessary intermediaries and work directly with people – whether they are clients, employees, freelancers, outsourced workers or other important personages in your business.
  2. Audience Targeting
    Any marketer will tell you how important it is to properly target to promote any product or service. Blockchain technologies allow you to set the criteria for selection as accurately as possible and, as a result, get exactly the audience in which the business is interested.
  3. Increased Efficiency
    Process automation and high technology often save time and increase the productivity of business processes. This example is no exception. You do not waste time on unnecessary bureaucracy and documents, technology does all the routine for you.
  4. Decentralized Applications
    Creating applications for your business is also decentralized thanks to the blockchain. Now you do not need intermediaries and deal directly with your customers directly.
Business model

The final word

It is important to understand that despite all its prevalence and advancement in the world of information technology, the blockchain is still at the beginning of its development. And this means that the prospects are much brighter and more attractive for both business owners and marketing employees. It is just enough to test it on personal experience to make sure that the combination of marketing and blockchain is highly effective.

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  • Source: Plato Data Intelligence: Platodata.ai
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