Chances are, you’ve heard of Bitcoin and maybe you’ve just come to grips with this digital currency thing. Pretty confusing stuff, right? Even if it’s been making quite a lot of noise in the last few years, it’s not easy to understand. Now blockchain is this year’s buzzword, and marketers might want to pay attention.
“Entrepreneurs are aiming to use blockchain to rework everything from how we track land ownership to how we distribute medicine and how we grant diplomas.” - Wired
What the Heck is Blockchain?
Blockchain is the record-keeping technology of tomorrow, recording everything of value over a private network or the Internet. It’s revolutionizing business processes and transactions on a global scale.
In its simplest form, blockchain is a heavily restricted database that stores records of transactions. For example, it tracks and records Bitcoin digital transactions. Everything is encrypted, so all sensitive data and privacy is protected.
Blockchain is Changing Major Industries
According to experts, 2018 is the year of blockchain technology. It’s becoming mainstream as many industries are adopting it, such as real estate, law firms, and banks to gain a competitive advantage.
Here are the areas in which it will transform various industries:
More transparency - The blockchain database holds a history of transactions, which are only accessible by administrators with access privilege.
Improved privacy & security - It’s more secure than other record-keeping systems. Transactions must be approved before they’re recorded, then encrypted and linked to previous transactions. Data is stored across a network of computers instead of on a single server, which makes it harder to hack.
Lower costs - It’ll help businesses cut costs by replacing record-keeping infrastructure and systems like money transfer services, payment networks, etc.
Speed & efficiency - Wave goodbye to paper-heavy processes and documentation. Modern businesses across multiple industries will save time, reduce clutter and human error as blockchain will streamline and automate these processes/transactions to operate faster and more efficiently.
How Can It Change Your Digital Marketing?
Now that you have a better idea of how blockchain will impact banking and financial transactions, here are a few ways it can affect brands and marketers.
1. Personal Data Protection
A lot of personal information is stored on the Internet and big companies know more about you than you can imagine (ahem, we’re looking at you, Facebook!). Firms are buying and sharing online information like names, addresses, salaries, our Internet activities and online connections to advertisers. Blockchain protects personal data, which means it won’t remain on servers owned by the applications you use or the website you visit.
2. Trust Redefined
Nowadays, consumers want to know if the “cruelty-free” and “organic” products they’re buying are actually ethically sourced. With blockchain, brands can prove their label claims. Companies who can present facts to support their brand story or promises will have a leg up on their competitors.
3. Enhanced Client Relationships
When your company can actually prove ethical practices with blockchain technology, you’ll be able to bring your brand storytelling to a completely new level. Your prospects and clients will be able to see full product information and sourcing, which can help enhance and personalize connections and engagement.