Some are predicting Blockchain will transform the way we market.
Let’s call it marketing for Web 3.0.
Will it impact you? Or just fizzle into an impractical idea? Or something in between?
Here are 12 critical facts every president and marketing director should know about Blockchain:
1. What Blockchain is.
Blockchain is a decentralized record of internet data, made accessible to everyone.
2. What cryptocurrency is.
Cryptocurrency is the digital currency that is used to make transactions, which are entered into Blockchain. Bitcoin was the first cryptocurrency created, but now there are multiple variations of cryptocurrency, including Ethereum.
Remember, Blockchain and cryptocurrency are two separate ideas…but must work together to work at all.
3. Today data is privately owned by platforms like Amazon and Facebook, or by marketers themselves.
Today, there are massive amounts of data on internet users being continuously generated, especially on sites like Amazon and Facebook. This information includes the purchasing history of users, and when and where they buy specific products.
4. Marketers have conditional and limited access to valuable data.
For many marketers, it can be a frustrating problem not to be able to access valuable data. Their products are being sold and advertised on major platforms like Amazon, but they have restricted knowledge of the data behind all of these transactions.
5. For Blockchain to work, every marketer and platform gives up ownership of data.
Blockchain ends the debate over who owns data on the internet. This massive ledger of data is decentralized and public.
6. Blockchain users have digital wallets that are protected.
Every user of cryptocurrency has a private key, a string of numbers that is attached to his or her digital wallet. Only the user can access this key, which is protected by a wall of cryptography.
7. However, transactions are made public.
Every transaction that is logged into Blockchain is also associated with a key, but this string of numbers is public. This is the crucial step in the process that makes valuable data available to everyone, including marketers.
8. With cryptocurrency- and Blockchain- there is no government control.
Cryptocurrency is not tied to any government control. The benefits of this include:
- No government manipulation, bias, and corruption
- No private control of data with bias or self-interest
- No hassle related to international transactions or foreign exchange rates
9. Marketers don’t need to understand how Blockchain works—just that it’s advantageous.
The backend of Blockchain is extremely complex. Fortunately, marketers don’t need to understand the fine details of how Blockchain and cryptocurrency function. All they need to know is that it can benefit them….
10. How marketers will benefit.
With Blockchain, marketers can have access to valuable information that will allow them to strategically and efficiently target the right prospects. Now, everyone can develop a targeting infrastructure with data that isn’t owned by any particular company.
11. Blockchain is inevitable…or is it?
Blockchain and the use of cryptocurrency could easily go mainstream, whether it’s in the next few years or the next few decades. In fact, in Japan digital currency is being used as much as physical currency. It’s widely recognized as a legitimate way of financial transaction, even for businesses.
It’s possible that Blockchain could also open a different marketing landscape.
12. What to do now.
Now, marketers should do nothing. Don’t count on Blockchain, but watch and see what is happening.
As with any trend, don’t be left out, but avoid being deluded that there is a major pill around the corner. It’s not inevitable—there’s too much self-interest involved. And government should stay out of the way. This must be a voluntary movement, not government forced—which would create terrible uninvited consequences.