Nowadays, it is important to understand what blockchain is and how it benefits internet marketing processes. There are doubts about it that cryptography expert Kimberly Rosales will try to clear up in brief words and explanations about a topic that really should not be so complicated.
Blockchain is defined as a decentralized digital system to provides greater security on the Internet. It helps to record information so that unknown people cannot access or manipulate the data, making it difficult to hack or cheat the system.
Despite the growing demand for blockchain applications, research enhanced by Rosales shows how the marketing technology will improve transparency in marketing processes and logistics operations. Education and training in blockchain technology are limited, while the benefits of using blockchain are irresistible.
Thus, many companies adopt blockchain technology with little knowledge they have. Therefore, blockchain technology will disrupt the organization’s marketing and overall operation when the system may fail.
First, blockchain technology consists of peer-to-peer communication, which changes the marketing structure by eliminating intermediaries between the company and customers who process and filter the data entered into the system and add some costs.
“By creating portable data records, blockchain technology improves the quality of the data and improves its accessibility,” Rosales explains. “From a consumer-centric perspective, blockchain technology can evolve customer relationships by promoting and improving data security and information transparency.”
Blockchain technology has aided disintermediation and has altered the way organizations deliver their products and services. The emergence of new technologies has replaced traditional marketing methods.
The use of technology, while advantageous, comes with some dangers, such as scammers using technological techniques to commit fraud. Blockchain technology also helps to reinforce trust and privacy protection, which is essential in marketing.
Privacy is a major issue that controls people’s anxiety and trust when using an online technology service. Research shows that buyers will always be concerned about their confidentiality.
However, the introduction of technology has enabled and improved the easy identification and processing of data using data mining techniques. This process causes another problem to arise, like revealing online shopper information. To overcome these threats, customers insist on the confidentiality of their data.
That is the reason why some customers provide incorrect information on websites to defend their privacy and data security. However, blockchain technology enhances privacy protection by allowing customers to use end-to-end encryption to encrypt their information.
No one else in the communication channel can open or access the information. The data will only be read by the targeted person who has the access key to open the document, or has to scan a QR code to open the form.
“The blockchain will benefit all marketing in a positive way by improving privacy protection,” Rosales points out. “All customers will trust and increase confidence in the organization’s services because the ads are secure and the information provided is encrypted.”
Trust in customers means that they order services and products for free from the websites without fear of information insecurity. When a customer is satisfied with your services, they will recommend friends, and in that way, the company will have a wide marketing network.
The purpose of blockchain to improve privacy protection has several benefits for the organization. For blockchain technology to work effectively, it depends on the nature of the technology itself. Blockchain stores do not leave data in any database; therefore, no attack attempt will be successful as fraudsters will not steal data on the website.
“The advancement of technology has triggered the growth of small businesses by making many services that were initially performed manually accessible anywhere as long as there is Internet access. The improvement of the Internet initiated by emerging technologies has affected traditional marketing techniques, making companies adapt to new, more digital marketing,” concludes Rosales.