The Bitcoin / Blockchain Storm Will Completely Change Digital Marketing As We Know It.
The only constant thing about things, is that they change. Currency is no exception. Traditional currencies suffer obvious setbacks such as:
- They could easily be forged, stolen, hidden and destroyed
- They are heavy and voluminous and require regular high-cost physical transportation
- Paper money can be undeclared for corruption and tax avoidance reasons
- Their value is dependent on many factors including decisions of states and banks.
- For every transaction, no matter how small, you need an intermediary, a bank or credit card.
This has lead to a change: someone calling himself Satoshi Nakamoto released a trust protocol and a currency that is not a national one, not controlled by any government or central body, can be easily traced and exchanged, has no to almost inexistent carbon footprint and is hard to forge or steal.
The technology genie was definitely unleashed from its old lamp.
- What is missing to give bitcoins their full potential?
Blockchains: digital ledgers where transactions in bitcoin are logged chronologically and publicly.
- What is the outcome of blockchains?
Mainly, transparency. It gives a view of the movement of bitcoins and similar currencies in a way that makes it extremely difficult to tamper with or forge.
- How does that impact digital media?
Hugely. Think well.
Let us give an example: Millions of people around the world say they would have donated to charities if they could know for sure the money will be used as intended. There you go! Blockchain literally make it impossible to forge where your money went. So what? Every single donation can be traced to a surprising level of detail. This can literally catapult the outcome of an incalculable number of projects, charities and endeavors online.
Blockchain acts as an open-source distributed unforgeable database using bleeding edge cryptography can efficiently and reliably facilitate all sorts of collaboration and tracking of transactions and interactions at all levels. This is not simply replacing the paper money with digital currency and ditching the paper ledgers with electronic ones. This goes way beyond to be a full scale revolution of the world as we know it.
Think of blockchains in capital market. Think of the potential of an unhackable immutable tracking system that allows detailed tracing of those transactions. While ole grandma could easily hide money in the mattress, it is extremely hard, literally impossible, to ‘hide’ a transaction using blockchain.
- So what will be the impact on e-commerce and digital marketing?
Apart from its value in ensuring the transparency of transactions, Blockchain is already used to verify the authenticity of products too. Brands use such information in marketing to increase credibility and prove authenticity. And why not also show the origins of the products and create competitive prices? Where it’s from? Who produced it and so on?
- How much or to what extent dealers or middlemen are ready to give the consumers all those details?
Rarely… Brands seek direct connections with their customers. And the latter will only benefit from the low cost advantages. With the transparency brought up by blockchain, the consumer has every available detail about the transaction or final product, depending what you are tracing.
A growing population of consumers today require information about the origin and resourcing of products and services. Many would refuse to buy an ethically questionable product or service, even if it comes at a much lower overhead. The transparency of the blockchain there would establish trust in the brand and the provider company’s reputation making the blockchain simply a deal maker for a significant number of customers.
The old days of secrecy around the origin and processing of items and services are gone forever. The future is one of publicly available open and honest information about services and products. In that, blockchain is nothing less than a storm that will totally change digital products and consumerism in a world where a tweet about a product or service can turn the world in less than a second. It is a new age of the most challenging change.