• Tue. Aug 11th, 2020
What is Blockchain Technology?

One of the best things about blockchain technology is that it eliminates the need for a middleman making communication easier.

Companies are constantly looking for ways to connect on a personal level with consumers, and new developments are being made daily to ease this process. One such advancement is called blockchain technology.

Blockchain establishes trust between consumers and companies by making it easier to make sales and transactions and often eliminating the middleman. Blockchain allows for information to be shared efficiently and accurately, and is referred to as a “peer-to-peer network.”

Blockchain relies entirely on cooperation and divided contribution since it cannot be controlled by one person. The “blocks” are the individual segments and chunks of information, all of which are identical, and they are strung together to make the “chain” that allows this communication.

Blockchain is extremely reliable, easy to use, and allows for a good amount of documentation. Blockchain has previously made strides in the world of cryptocurrency, including Bitcoin, but has become huge in digital marketing, as well, and there are many ways you can utilize the technology to better your business.

Cutting Out the Middlemen with Blockchain Technology

Typically, there is a program or another company that facilitates communication between consumers and businesspeople, and because it does this, the middleman takes a cut of the profit when sales are made. Getting rid of it allows for an immediate connection between the two parties and for more money to go straight to the company.

But how exactly does blockchain make a middleman unnecessary? Blockchain is considered both a public ledger and a decentralized means of technology. Anyone can build on the “blocks”, and the information in the ledger is on everyone’s computer, which means that the blockchain is no longer centralized.

This means that since one person or company can’t control the blockchain, a bank, company, or some other middleman doesn’t play an important role, and more money can go straight to the business.

Trust and Reliability

Another reason middlemen are used so often without blockchain is because they are considered trustworthy; most of the time, the names are well-known and verified. However, with blockchain and no middlemen, transparency is still easy and allows for more trust between customers and businesspeople.

Trust is huge, one of the biggest factors when it comes to attracting more potential consumers and making more sales and profits, so companies are always looking for ways to establish trust with potential buyers. Blockchain is extremely thorough and transparent, detailing all the information about a company that any interested party could possibly want to know.

This allows people to research and learn as much as they want to about a new company, and answer many of their questions because of the facts that are given. They can see how products are made or how services are provided and can decide for themselves if the company is credible and reliable.

The decentralization allows for a more secure network, too. Because all the information is the same and blockchain is transparent and easy to use, the possibility for computer errors is slim to none. Intentional human action, such as hacking, is the only thing that will disrupt blockchain.

Other Benefits of Blockchain Technology

While it is true that blockchain has made cryptocurrency more successful, it also offers many benefits to those in digital marketing. The transparency and easily accessible information allow consumers to develop trust toward the companies, which will in turn increase sales.

Eliminating the middleman also allows for more profits to go straight to the business, and allows for a stronger relationship to be established between the consumers and employees. Additionally, blockchain can track media purchases and figure out which products are selling best, and to what audience they are being sold.

This also helps with targeting; consumers see ads that are specific and personalized and will draw them back. Since blockchain is so reliable, it protects the information of customers and this also makes it more likely that they will come back to shop again. Blockchain can greatly increase productivity for those in the digital marketing business, and for those who run their own businesses.

In this day and age, it seems easier and easier to have your identity or information stolen or to find out that you have been part of a scam involving a company. With blockchain, the likelihood of these events happening goes down tremendously. Trust and transparency increase with blockchain technology, and allow for easier communication and a stronger relationship between customers and businesses, which is always a good thing.