What role does Cryptocurrency (and blockchain) have in Marketing?
Heraclitus was a pre-Socratic Greek philosopher who had popularly maintained that change is the only reality in nature. Born in 535 BCE little did Heraclitus know that his philosophy would perfectly sum up the exponential rise of cryptocurrencies against the traditional FIAT currencies.
The debate over the sustainability of cryptocurrencies against traditional FIAT currencies is more or less over now with more and more people joining the Bitcoin and other cryptocurrencies bandwagon. But apart from being a primary medium of exchange, experts cite blockchain, the underlying technology behind Bitcoin, as a major disruptor for traditional industry practices and this includes marketing too.
So What do Cryptocurrencies and Blockchain mean for Marketing? In this blog, we try to answer exactly that.
The blockchain is, in essence, a distributed system for asset management and facilitating transactions based on trust, consensus, security, and smart contracts. The blockchain is yet to realize its complete potential and it may take a few years to do so. And it will take some time before blockchain’s potential is truly unraveled but the initial tremors can be felt.
This was particularly felt in 2018 as more and more internet based companies were found to be repeated offenders as far as public data and security is concerned. User Data privacy is now a major concern for policymakers and internet companies alike. Stringent laws are set to be in place any time soon and this means that more companies will adopt a pure or hybrid blockchain solution for the same.
Anonymity and Future of Marketing
User Anonymity is a key feature of Cryptocurrencies and Blockchain at large. This Blockchain feature could have a hypnotizing effect for mass scale Blockchain adoption. New networks like Steem or SocialX are already offering secure and anonymous alternatives to social media giants like Facebook. In near future, this could mean a knockout punch for traditional digital marketing channels and practices.
- Centralized Systems will not share user data with the ease and uninhibitedness that they do today.
- Restrain over user data access will surely cripple the practice of studying and predicting consumer buying behavior.
Centralized Systems will not share user data with the ease and uninhibitedness that they do today.
Restrain over user data access will surely cripple the practice of studying and predicting consumer buying behavior.
This will leave marketeers unarmed and fragile. To survive in a decentralized marketplace, one would have to discover new channels for collecting user data to make informed marketing strategies. This could also mean going back to the good old days and connecting with consumers directly for data.
In conclusion, we can say adaptability is key to survival and marketers should find solace in Darwin’s theory of survival of the fittest. One solution could be special reward programs and benefits for consumers who wilfully share personal information as well as an assurance that their data would be used for strategizing and strategizing purpose only.
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