Over time digital marketing has become an indispensable part of a business process. It is unimaginable to achieve any business goal without using the internet.
It has simplified the process of interaction between businesses and consumers. People now can scrap the internet for a product or service and choose one that best suits their needs.
However, besides the benefits that digital marketing has brought to humanity, there has always been a threat to security. There have been numerous cases of data breaches and hacking scandals in the past few years. It created an urgent need for a security system that ensures businesses and consumers for data safety.
It is where blockchain comes into play. It succeeded at providing security that the digital world lacked. But, how is it beneficial for digital marketing? Before answering that question, let’s understand blockchain in detail.
What is blockchain?
A blockchain is a data structure that stores transactions and information in groups known as blocks. A block has a fixed storage capacity, when it is filled, the block is closed and linked to its predecessor block, forming a chain of blocks known as a blockchain.
The prime difference between an orthodox database and blockchain is how the data is structured. A database typically stores information into tables, whereas a blockchain structures its data into chunks strung together.
As new data comes in, it is filled into a new block and chained to the previous block forming a series of blocks.
What is the use of blockchain in digital marketing?
The decentralized form of blockchain enables users to collectively retain control rather than putting one person or a group of persons in charge of it.
Once a block stores the information, it becomes immune to external change. It helps digital marketers generate accurate leads and provide their customers with a better experience. It is why it has become one of the most rapidly growing technologies globally.
Another way blockchain benefits digital marketing is by providing the next level of safety and transparency.
Blockchain has enabled consumers to access some of the most vital information, such as the manufacturing location, the skill level of the laborers involved in the production, and the material used in manufacturing. It helps them assess the authenticity of the products and services.
Forecasts suggest that blockchain technology will experience rapid growth in terms of technology in the coming years.
Blockchain in digital marketing facilitates valuable customer interactions and long-term consumer relationships. Businesses can use blockchain to build trust in their consumer and increase brand awareness. Additionally, it provides the next level of security, so any possibility of data breach or cybercrime is obsolete.
How to implement blockchain in a business?
Blockchain as a service (BaaS)
The popularity of blockchain has driven a lot of tech giants towards blockchain as a service (BaaS). BaaS is when a third-party service provider installs and maintains blockchain for a business. It is an ecosystem managed and administered by cloud-based service providers.
BaaS has gained significant attraction after the success of bitcoin. It can resolve complex issues cost-effectively and straightforwardly. It is a good option for small to medium-scale businesses as it saves the extra cost of hiring developers and developing blockchain data structures on their own.
Several hosting providers and tech giants now provide dedicated to integrated BaaS services. There are chances that your hosting provider most probably has an integrated plan in place for you.
If you decide to build a blockchain-based application on your own, blockchain platforms will come in handy. They have built-in blockchain data models and frameworks, allowing developers to create and host applications on the blockchain.
However, it is essential to select the most suitable platform depending upon your requirements. Some blockchain platforms with the built-in framework are Ethereum, Hyperledger, R3, and Ripple.
Several factors determine the most suitable blockchain platform for your business.
- The development status of the platform
- The type of blockchain required
- The set of languages that the platform supports
- The functionality of the platform
- The popularity of the platform
- The scale of solution required
One thing that makes digital marketing trends different from other elements of digital marketing is the dynamics. Digital marketing trends are ever-evolving and change overnight. Blockchain in digital marketing is another such trend.
If you wait to implement it for your business, you will lag way behind your competitors. Blockchain in digital marketing is at its nascent stage. It is essential to improvise it as soon as possible and gain that extra edge over your competitors.