The blockchain technology was born at the same time as the bitcoin. In fact, it is the system of coding the information that is behind the leading virtual currency and that supports its entire structure. Agencies such as Goodnoon soon saw the potential that this technology had for decentralized PR services and the number of applications it allows beyond financial transactions.
The blockchain has gone from being a practically ignored technology to becoming the focus of the innovation of crowdsourcing initiatives. It allows financial transactions between two participants in a secure, reliable and irreversible way. The most important thing is that there is no need to use intermediaries to establish trust relationships between the parties, which, logically allows cost savings in the advertisement campaigns.
Data impossible to falsify
One of the significant advantages of the blockchain is that once the data is registered inside the blockchain, the transactions made are impossible to falsify. Also, they cannot be deleted either since the database has a history of each operation since the creation of the block. Another advantage of the blockchain to take into account is that, even if the network were to crash, the information or service would never be lost, but would continue to work. It would only be necessary for one of the nodes inside to work before the fall of the system.
Identities Can Be Verified Online
Blockchain-based networks come with control of the user data allowing the necessary transparency for consumers, but also for companies that pay for advertising. While it may not always seem that way, most advertisers are not interested in spamming you with annoying ads. Besides, they would prefer to spend marketing money to target people who would be interested in buying products or services according to their niche. Also, for marketers, it is extremely important that the users they target in their campaigns to be according to their demographics but also to be real people and not fake bot accounts.
Both problems can be solved by using blockchain-based platforms, because, as already established, once the user’s data has been verified with a hash identification, it can be traced back to its origins at all times and can no longer reproduce false duplicates. Marketers will be able to know right away when they are in touch with a real human being, which will make spending on campaigns more efficient and the success rates for potential sales will be much higher.
A More Efficient Analysis System and ROI
Blockchain has the ability to verify the identity of users leads directly to the next benefit for companies, which is that the blockchain technology allows advertisers to measure their campaigns and target the public with greater precision.
Again this is because all the data in networks based on blockchain are verified, which results in only accurate information that can be taken literally because it has not been manipulated by false accounts or bots that mimic human behavior. With improved analysis, marketers will be able to mark their campaign strategies meticulously and turn them into a higher return on investment (ROI).
Reduction Of Operational Costs
Similar to the way that content creators can increase their revenue by eliminating the broker, companies can use more of their advertising dollars to reach potential customers instead of paying for a platform on which they advertise. (The Basic Attention Token, in the Brave browser, is already beginning to address this issue).
The blockchain technology and advertisement will benefit not only marketers but also creators of content and influential people who are paying to promote their brand message. Without having to resort to an intermediary such as Google’s advertising network – and by compensating in the form of cryptocurrencies – advertisers could work directly with creators and influencers and put more money in their pockets that would otherwise be split up with platform providers by third parties.
The use of cryptocurrencies would make the payment process faster, safer and more global in nature, since no international transaction fees would have to be deducted. In conclusion, blockchain technology benefits consumers and businesses on both sides of the social media equation. Transparency and unparalleled control of personal data have the potential to establish a new world order in which users and advertisers can work together while fake information, such as foreign news and bot users, can be erradicated.
Now the only question is whether the existing social networks will change to this model, or if the new systems based on Blockchain will interrupt and take over the social media landscape as we know it.