What is block chain technology and its use in marketing.

Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then
imagine that this network is designed to regularly update this spreadsheet and you have a basic
understanding of the blockchain.

Information held on a blockchain exists as a shared — and continually reconciled — database. This is
a way of using the network that has obvious benefits. The blockchain database isn’t stored in any
single location, meaning the records it keeps are truly public and easily verifiable. No centralized
version of this information exists for a hacker to corrupt. Hosted by millions of computers
simultaneously, its data is accessible to anyone on the internet.

The traditional way of sharing documents with collaboration is to send a Microsoft Word document
to another recipient, and ask them to make revisions to it. The problem with that scenario is that
you need to wait until receiving a return copy before you can see or make other changes because
you are locked out of editing it until the other person is done with it. That’s how databases work
today. Two owners can’t be messing with the same record at once.That’s how banks maintain
money balances and transfers; they briefly lock access (or decrease the balance) while they make a
transfer, then update the other side, then re-open access (or update again).With Google Docs (or
Google Sheets), both parties have access to the same document at the same time, and the single
version of that document is always visible to both of them. It is like a shared ledger, but it is a shared
document. The distributed part comes into play when sharing involves a number of people.

By storing data across its network, the blockchain eliminates the risks that come with data being
held centrally.

Its network lacks centralized points of vulnerability that computer hackers can exploit. Today’s
internet has security problems that are familiar to everyone. We all rely on the
“username/password” system to protect our identity and assets online. Blockchain security methods
use encryption technology.
The basis for this are the so-called public and private “keys”. A “public key” (a long, randomly-
generated string of numbers) is a users’ address on the blockchain. Bitcoins sent across the network
gets recorded as belonging to that address. The “private key” is like a password that gives its owner
access to their Bitcoin or other digital assets. Store your data on the blockchain and it is
incorruptible. This is true, although protecting your digital assets will also require safeguarding of
your private key by printing it out, creating what’s referred to as a paper wallet.

How could blockchain influence digital marketing?

Digital marketing is a type of marketing that still has a ways to go. Consumers always have one
irritating issue faced by them - ad overloads. Companies always show and send users a load of
advertisements instead of sending fewer advertisements. The main reason behind this is the lack of
understanding of companies about their audience.

As they don’t know the taste of their audience, they just send numerous ads hoping one will catch
their interest. Most of the time, these companies annoy users by popping ads on a page that
consumers visit which takes up most of the screen, which can be extremely frustrating and intrusive
for the consumers.

Not only are they annoying but these large ads can also drain the battery life of devices and take up
bandwidth. Blockchain-based companies are introducing apps such as Basic Attention Token (BAT)
that bring changes to the interaction between advertisers, users, and publishers. The steps involved
in this are:

 Advertisers can buy advertisements using the app on the brave platform.
 Users will be able to decide the type of ads they want to see. Rather than dealing with an
unwanted and unnecessary number of ads, they will be able to see the ads that peak their
interest most. If a user sees an ad, then they will be paid with a certain small portion of what
was paid to buy the ad by the advertiser.
 As consumers receive a commission from BAT, the publishers are also paid, but the amount
they receive is larger than what consumers receive.

As blockchain is a decentralized technology, it assures the digital marketers that their transactions
are secure by improving cybersecurity. Also, it is not controlled centrally - in simple words, nobody
owns or controls the blockchain. With this, companies or businesses will be able to avail of the
numerous advantages provided by blockchain.

What about using cryptocurrencies? These are the new digital currencies that work based on
blockchain technology. These are not physical or actual coins or cash but are used in the digital
world, where these are stored in a digital wallet a person as coins. Just like in the real world, the
values of these digital currencies are also affected by supply and demand and many other things.

No intermediaries
Beyond cryptocurrencies, blockchain offers a world of opportunities. It can affect the digital
marketing industry greatly. One of this is the elimination of depending upon a middleman or
intermediary in digital marketing, such as social media sites or Google. This can add more value to
the ad campaigns of the companies.

Traditionally, marketers depend on these middlemen for the transactions made and also for the
launch of ad campaigns, but with blockchain, there is no need to depend upon them. Blockchain
eliminates the need for companies to communicate with website owners through a medium
whenever an ad is going to be published.

Previously this job was done by sites like Facebook or Google to make the communication between
site owners and digital marketers. But with blockchain, there is no need for intermediaries when
users sign a contract related to advertising. This ensures a significant increase in the income of
digital marketers due to the cutting of cost that went to intermediaries previously.

Transparency

Previously advertisers knew very fewer details about the use of ads by publishers, which led to high
expenses for publishing ads and also in some cases ad fraud. But, with blockchain, the process is
more transparent - also they can learn who is seeing their ads and know if it is marketed to the right
audience or not.

Clearly, blockchain is a very useful technology that is revolutionizing various industries, and it can
also have a great positive impact on the digital marketing industry.