Cryptocurrencies have been making waves in many industries. The technology may be new, but there is no doubt that cryptocurrencies are here to stay. For marketers, cryptocurrencies represent an exciting new landscape. In this article, we are going to introduce you to cryptocurrencies and offer some tips on the five things all marketers need to know.
1. What are Cryptocurrencies?
Unless you have been living on a remote island in the Pacific for the last ten years, you will be familiar with Bitcoin. But Bitcoin is just one of many cryptocurrencies, also known as alt coins. Bitcoin and its ilk are digital currencies. That is, they don’t have a physical presence, yet they do have an intrinsic value. Bitcoin is the biggest cryptocurrency, with a market cap of $66.5 billion. You can check the prices and market caps of other cryptocurrencies using a coin tracker.
Cryptocurrencies can be bought, sold, and traded online. They can also be used to pay for goods and services.
2. Blockchain – A Decentralized Ledger
The underlying technology of cryptocurrencies is called the blockchain. It is the nature of blockchain that makes cryptocurrencies so exciting from a marketing perspective. The easiest way to describe a blockchain is that it is a huge document, which everyone in the network can access and contribute to. Rather like a Google document, you need permission to view and edit the ledger. Nobody can destroy the blockchain and none of the entries can be changed. This is why blockchain and cryptocurrencies are so exciting to marketers.
3. Why is Blockchain so Important?
The concept of blockchain is very important for marketers. Online advertising is a very important part of every marketing strategy. Blockchain eliminates the middleman in online advertising. Instead of using Google to display ads, with Google pocketing a share of the ad revenue in return for supplying the platform, marketers and website owners can use blockchain to find and verify advertisers.
Because blockchain verifies every user and all transactions are validated, it is impossible to cheat the system. Removing the middleman makes online search engine marketing much cheaper for users.
4. Increased Trust with Blockchain
The beauty of blockchain is that it is completely transparent. Every transaction on blockchain is verified and validated. Customers can see directly into every aspect of a company’s supply chain, so if they claim to use renewable materials for their products, supply chain transactions recorded on the blockchain will back this up. Transparency builds trust, which in turn attracts customers. It is a win-win for marketers.
5. Dealing with Customer Data
Protecting user data is critical. The implementation of GDPR legislation makes it even more important these days that customer data is treated with the utmost care. Marketers can’t afford to play fast and loose with sensitive personal information or anything else. If they do, they risk heavy fines, and worse.
Thanks to blockchain technology, customers have far more control over their data. The blockchain is controlled by all users, not just one, so it will be impossible to tell which individual bought the product. Ultimately, this will put users in control of their own data. There may come a time when companies are forced to pay users to access their data.
Steem is one such platform where marketers must engage with users to access personal information. They are given the option to purchase data, whereas, on other platforms, this data is often made available by other means.
There is no doubt that cryptocurrency and blockchain are changing the way marketers do business. Are you ready for this seismic shift?