A New Age for Digital Advertising with Blockchain?

This article was originally published by Mintdice at
https://www.mintdice.com/blog/a-new-age-for-digital-advertising-with-blockchain

Advertising has become an essential part of promoting any type of business available and even plays a role in driving the data market further. The world of advertising is worth billions of dollars and is on course to hit $120 billion by 2021 in the US.

Every company, no matter what they offer, cannot function without reaching their target audience– this is where advertising comes into the picture. Brands like Google live off consumer data which can be used to send targeted ads to the right audience. Unfortunately, there are several issues that make the process of reaching the right audience inefficient.

Currently, almost half of all ad traffic is generated by bots. This means that even though so many brands pay a lot of money to reach their potential customers, it does not guarantee that they will actually make any sales to real, paying customers. While the reach and even engagement generated by paid ads can translate to heavy figures, the useful leads are relatively low.

This situation can be fixed by creating platforms that will allow companies to target their potential customers individually and in a direct manner. This will ensure that bots can be filtered out and sales can be maximized.Blockchain applications and  smart contracts are great technologies to base such a system on.

A blockchain platform is an immutable digital ledger that stores all the transactions carried out on the network it supports. It has already been described as an emerging technology that will disrupt the way several industries function. It is now clear that digital marketing may be one of those ledger technology industries.

In the past few years, since the emergence of bitcoin, the buzz surrounding blockchain which underpins most cryptocurrencies has increased considerably. There are already more than 2000 digital currency, all with their own unique use cases and projects. The appeal of blockchain lies in the number of useful applications it has. In advertising, a blockchain platform would be able to target the users on its network without allowing bot activity to thrive. It could also change current the world of advertising by making the process more transparent and private.

How can the new blockchain process be used by advertisers?

Mostly, blockchain can be used to improve the process of running digital ads and paying out publishers as well as distributors. When implemented, the technology can improve the following:

Fraud prevention

Advertising has a fraud problem perpetrated by human accounts as well as bots. Usually, bots are created to crawl web pages carrying out helpful tasks, but they have become a medium for carrying out cybercrime.

Popular platforms like Twitter where advertising plays a huge role have reported a bot problem that they’re actively trying to combat. In fact, Twitter has begun making plans to implement blockchain technology in solving this problem.

According to “What Happens Next: How To Reverse The Rising Tide Of Ad Fraud,” a 2017 report, up to $16.4 billion of global advertising revenue was wasted on ad fraud in 2017. Unfortunately, this figure may continue to increase if nothing is done to fix the situation. There are several factors that make blockchain well-suited for fraud prevention, including:

  • Immutability
  • High levels of security due to its decentralized mode of operation, verification mechanisms and encryption.
  • Transparency since transactions can be authenticated.

Overall, blockchain systems make it difficult to commit fraud because transactions are in the open. Also, blockchains do not have a single point of failure and as such, it is difficult to hack them. This can potentially save advertisers and publishers millions each year by protecting them against cybercrime.

Direct to consumer digital marketing

Platforms like Google and Facebook have come under fire recently for consumer-data distribution issues. Because such platforms make a lot of revenue off advertising, they collect consumer data to better target the right target audience. Unfortunately, this could feel like a violation of privacy for many users who would rather have more control over how their data is collected and what it is used for.

Usually, enterprises that run digital ads on larger platforms like Google and Facebook have to pay for this service. Blockchain gives them a way out. Since the information stored on blockchain networks are secured using various encryptions that can only be decrypted using the owner’s private keys, users retain control over their data. As a result, the services of middlemen will no longer be needed in the advertising data collection process. These blockchain platforms create a direct connection between consumers and enterprises.

Companies can also use blockchain to show people who their data is being sold to since the information cannot be deleted or manipulated. This will make consumers feel at ease without having to constantly worry about their data.

Provisions of efficient cross-promotional B2B contracts

Smart contracts are lines of written code in the form of distributed apps on a blockchain network. They are created to set up a binding agreement between parties based on their conditions. The conditions can be external events, like a price point, set of obligations or time limit with an expiration date. Since blockchain transactions can easily be verified, smart contracts cannot be forged and all involved parties can follow up the transaction.

These contracts can be used in any system from voting to app subscription and digital marketing. They help advertisers bypass lawyers and other middlemen by conducting the process of exchanging money, shares or any valuable assets. These contracts are created with conditions that are self-executed in a transparent and conflict-free way.

Influencer marketing is popular among brands but there is currently no regulatory third party to determine how terms are created and followed or even how payments are made. Using blockchain, businesses will be able to clearly state obligations that must be met for payments to be made, and a smart contract will enforce it.

This will make B2B cross-promotional marketing more efficient since several contracts change hands between marketers, writers, bloggers and even social media influencers daily. Ultimately, businesses will protect themselves and save money and time in the event of a contract breach.

Transparency in contracts and with consumers

There are lot of cases in which advertising lacks transparency, such as platforms that show advertisers false metrics. For example, a platform could claim to gain millions of impressions on each ad they put out. Normally, there would be no good way to verify this information and find out the truth.

This presents an easy way for platforms to defraud enterprises through false advertisement. However, since a blockchain records such data in a way that cannot be tampered with, it can easily be verified.

Final thoughts

Advertising will continue to be the backbone of commerce because most people will not buy a product if they are not given a reason to. However, like many other industries, it is due for a technological reform that will make it more efficient for all relevant stakeholders. Blockchain not only makes the advertising process easier, it makes it faster, more secure and transparent. As this emerging technology continues to develop, there will gradually be more stable versions of it that may become more valuable to advertisers.

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5 Most Useful Blockchain Videos: A Beginner’s Guide

This article by Sarah Pritzker first appeared on Youtubetomp3shark.com.

You might be somewhat familiar with the idea of blockchains, or you might have only heard of the phrase in passing (or you might not have any idea what a blockchain is but thought the article title sounded more interesting than the topic currently being discussed in the meeting your supervisor is making you sit through…). Either way, there are still a lot of questions that you probably have.

What is a blockchain?

How does a blockchain actually work?

Are blockchains really as secure as they claim to be?

Can you invest in blockchain itself?

What is the advantage of blockchain?

Maybe you’re getting more involved and want to delve deeper into the exciting and fascinating world of blockchains. In that case, your questions might be more advanced like:

What programming language is used for blockchains?

Is blockchain open source?

Is blockchain hackable?

Are there other use cases for blockchain beyond bitcoin storage?

Will blockchain change the world?

No matter what your string of queries, the best place to find the answers is always the internet. There are thousands and thousands of videos out there explaining the definition, uses, and inner workings of the blockchain.

I know what you’re thinking. Great! Let’s sift through thousands of videos to find the ones that actually make sense, answer your questions, and give over the information you want in an appealing manner. If that doesn’t sound as much fun as a barrel of monkeys (why would a barrel of monkeys be fun anyway?!), then you’re in luck.

Since we know how interested our readers are in the topic, we’ve aggregated the best videos from across the web that talk about blockchains. From the straight-up definition to the more advanced jargon that most of us will never really understand, check out the 5 most useful blockchain videos out there to help you get started down the path of blockchain wisdom.

Great Blockchain Video #1: What is blockchain? CNBC Explains by Tom Chitty

And here’s why: It gives you all the important information you want to know, starts from the beginning, and explains the entire concept well

There are a lot of blockchain for beginners videos. You’ll recognize them by the names like, what is a blockchain, blockchain explained, or blockchain for beginners. The truth is, though, that most of these videos take a lot for granted, assume you know more than you actually do about the topic, or don’t really explain the concept in a practical way.

And that’s why this CNBC exclusive done by Tom Chitty is our first recommendation for anyone who is just starting out on the learning journey to blockchain technology. If you can understand the accent and overlook the poor wardrobe choices, then you can actually learn a ton from this explanation video. Chitty goes through the ABCs of blockchains, showing the negatives alongside the positive uses for blockchains. He also shows you exactly how it works, why it is so secure, and what future applications might be possible for this technology.

The CNBC video also takes you through the benefits and possible financial ramifications that are involved in embracing this technology. All in all, Chitty does a great job of explaining a complex topic and gives you a lot of food for thought.

Great Blockchain Video #2: New Kids on the Blockchain by Lorne Lantz

And here’s why: Practical ways people are currently putting blockchain to good use and how they will even more so in the future

Aside from the fact that this is a TED talk, which automatically makes it amazing, Lorne Lantz explains exactly how blockchain works quickly and eloquently. He then moves on to break down how blockchain works within the bitcoin universe, something that most people are curious about. Finally, Lantz illustrates how blockchain can be used in other instances. This is not only fascinating, but it is a great way to educate the public about how this brilliant technology can be utilized in the future and within our day-to-day interactions.

Great Blockchain Video #3: Understand the blockchain in two minutes by Institute for the Future (IFTF)

And here’s why: It’s fast and easy to watch but surprisingly thorough for a two-minute video

We all want to know more about various topics like cybersecurity, the effect of drug and alcohol combinations, or depression and prevention. But let’s face it, we’re lazy! And what’s more, our attention spans are shorter than Michael Jordan’s laughable attempt at becoming a baseball star. For this reason, I am highlighting this video from IFTF.

The Institute for the Future does snapshots of interesting topics, trending concepts, and technological advancements that they deem worthy of a closer look. This video on blockchain is just two minutes long, but somehow it manages to explain everything you really need for a cursory understanding of the topic (and even a little more). So, if you’re already antsy just from reading this intro, check out the IFTF blockchain video (you can watch it double speed if you’re that strapped for time!).

Great Blockchain Video #4: How the blockchain will radically transform the economy by Bettina Warburg

And here’s why: Food for thought on a more advanced technology that is offering a safer and more reliable forum for value exchange

Whether you’re a conspiracy theorist, a budding financial mogul, or just someone who thinks it’s really cool to see entire empires brought to their knees by the unlikely underdog (think David and Goliath or Spartans against the Persians), this is a must watch video. Bettina Warburg explains briefly how throughout history we have used various methods to exchange values within our societies. From protection to fish and coins and now to the more advanced banks and digital currencies, the world has always had its way of trading valuables for desired goods.

In this video (yep, another TED talk), Warburg takes us through the process of how blockchain is the next chain in the evolution of value exchange. She expertly breaks it down, so you can see how this makes sense on a sociological, economic, and technological level. What’s more, she demonstrates how blockchain is the safest, easiest, and most reliable method we have come up with yet.

So basically, Warburg’s video shows viewers how blockchain is like a solid, unbreakable safe, which makes it more trustworthy and evergreen than any other transaction method that came before it. I don’t want to spoil the video for you, so just watch it for yourself.

Great Blockchain Video #5: Blockchain: Massively Simplified Richie Etwaru

And here’s why: A fabulous twist

This video starts off seemingly like all other beginner’s guides to blockchain. It talks about the early days of the internet (those dark times of dial-up modems and even earlier ARPAnet packet switching technologies) and quickly fast forwards to show you how kickass technology has become (as if we needed a video to tell us that).

All very interesting stuff, but nothing new. And then Etwaru does something that nobody else we’ve seen so far attempt. He takes blockchain and explains how it can bridge a gap that no other technology has been able to traverse, a gap that is so fundamental to human interactions and our society as a whole that it’s truly a marvel that we’ve gotten this far in history without having a more reliable failsafe for it.

In this video, Etwaru explains that inventions are all about bridging gaps in our society, world, and lives. He then continues on illustrating how blockchain bridges the gap of trust, one of the most core and necessary element of our society, one that holds trillions of dollars on its wobbly shoulders. With his mesmerizing voice, witty personality, and mind-blowing revelation, Etwaru really blows the top off of this simplified concept. And that’s what makes his video on blockchain really stand out.

Blockchain Explained, Expanded, and Explored

So, there you have it. Sure, you could sit there for hours and hours watching video after video, sifting through the crap and suffering through the clunky terminology, but why bother? We’ve rounded up the cream of the crop, the best videos out there, the ones that’ll give you the biggest bang for your buck. In fact, if you just watch these five videos, you’ll:

  • Know all the basic information about what blockchain is, how it works, and what it’s used for
  • Be able to hold your own in a conversation that is arguing the different sides of blockchain
  • Have some interesting ideas to help stir up controversy when everyone’s talking about this technology at the office water cooler, at your next family barbecue, or this Thursday night at the bar
  • Just generally sound like a smartass because you know more about an interesting topic than almost anyone else in the room

Of course, if you are a real newbie to the blockchain concept, then here’s some quick information to warm you up to the subject and to ensure you don’t sound like a complete idiot the next time the subject comes up.

  • Blockchain is an online database that can be accessed by anyone and from anywhere in the world (provided you have an internet connection)
  • Blockchain is decentralized, which means its ledger is shared on every computer around the world, so it has no single central location
  • Blockchain can be added to by anyone, but once a record (or block of information) is created, it cannot be tampered with, changed, or deleted
  • Bitcoin is NOT the only use case for blockchain technology. In fact, it’s just the beginning baby! From banking to cybersecurity, crowdfunding, Internet of Things, and healthcare, blockchain has so many real-life applications.

Now that you’ve got all this information in your head, knowledge is power. So, get out there and do the best thing anyone can do with a boatload of interesting information; flaunt it in front of your friends.

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