If in 1992 they came to you and said: “You know, there is such a thing – the Internet. It will soon earn billions of dollars “. How would you react?
The Blockchain industry is now at the same early stage of development, but its potential is huge.
In today’s article, we will take a closer look at the principles of blockchain technology and try to explain why all marketers should know about it.
1. How the new industry is formed
Many large organizations are interested in using chains of transactions (blockchain) to improve their efficiency.
Cutting costs is good, but it’s not the same thing as creating value. At the same time, innovations in business models should go beyond the application of new technologies.
That’s why you should pay attention to the technological blockchain stack. Understanding this approach, even at the earliest stage of its development, will help open up new infinite possibilities of creating value.
2. Understanding the technological stack of blockchain
What is a blockchain? In fact, it is a distribution database in which each record has a time code, a cryptographic security protocol, and a link to previous and subsequent data in the transaction blocks. This relationship forms the chain of transactions. Thus, blockchain – chain of transaction blocks.
This system does not have centralized control. All participants are responsible for maintaining consistency and removing “garbage.”
A huge spreadsheet of time-bound transactions does not actually take up much disk space. Any modern computer will cope with such a load.
But what if chains of images, audio, video, virtual worlds are created? In this case, you will have to remember copyright protection and start checking the system for duplicates.
Think about this in the following key. We all have unused disk space resources from which you can derive some value. Let’s say you have 500 GB on your hard drive, but you only use 200 GB.
What should I do with the unoccupied space? You can rent it Storj, Sia or FileCoin, which will pay you for storing your files.
So, you may get 1 StorjCoin or SiaCoin for hosting. The developer will receive 1.1 StorjCoin or SiaCoin from the end user of his service. These 0.1 StorjCoin or SiaCoin will be the developer’s profit. This is an example.
At the same time, such networks do not take commission. They will be able to offer the same storage capabilities as Google, but on 90% cheaper . Of course, to make the system work, they need hundreds of thousands of active customers. And customers will appear on these platforms only if developers create their products on their platforms. And this will become possible only if there is sufficient storage space for the data.
But the creators of such protocols will still be interested in the growth of tokens in Swazi with increased demand for them. After all, they will make money.
Investing in the currency of successful storage protocols is a real way of earning.
Most often, all legal agreements are built on the principle: “If party A agrees to make X, then party B will make Y” . This is very similar to the code – “code of law.”
Thus, all database assets can be programmed to output the appropriate legal and business rules. Consider a simple example.
Suppose you want to occupy the first position on search queries “blockchain marketing”, “marketing in a blockchain world” or “blockchain + marketing” . You have found an SEO specialist who will be able to accomplish this task in two months and it will cost 2 bitokoya.
In of the traditional model this person will send you a contract, you sign it, and in two months accept and pay for the work. It takes quite a lot of time and effort to do this.
In conditions of new model of smart contracts, you set the rule “If the resource position on the request of” blockchain marketing “will be the first on May 21, pay the performer 2 bitokoyna. If not, pay only 0.5 bitokonov “. You can also appoint an independent arbitrator, and then consolidate the agreement with unique cryptographic signatures. Then the customer contributes the necessary amount to a special account and the contractor starts working.
On the appointed date, the system sends a request to Google, analyzes the result and redirects the agreed amount to the contractor. In any case, the contract is written in a chain of blocks and is opened for verification. This usually takes much less time and effort.
The platform for smart contracts appoints a commission of 0.001 bitokoyn. If it ensures the conclusion of 10,000,000 contracts, it will earn 1,000 bitokoynov, which is equal to a million dollars.
Another feature of the stack is open-source protocols or multi-purpose software with certain rules that will soon replace the proprietary systems that we are familiar with.
You can monetize these platforms through “ crypto-tokens ” (crypto currency). The whole world is talking about them now. Tokens make it possible to benefit more from joining the network of new people. After all, the use of the system implies the possession of special tokens and their use.
Consider, for example, La’Zooz – a kind of decentralized Uber. In the model Uber you join the network, and the more participants become in it, the more useful it is. All the value in this case goes to the owners of the network.
In the world of decentralized economy La’Zooz creates tokens (Zooz) and offers them to members of the network. And that’s what happens: customers need Zooz to pay drivers. Drivers take Zooz in exchange for trips. At the same time, the value of this currency grows with the growth in demand on it.
Imagine that you have 100 Zooz. Each Zooz costs 1 dollar. There are 100 participants in the network: 50 drivers and 50 passengers. Each trip costs 1 Zooz.
As people begin to learn that La’Zooz is cheaper than Uber, more participants join this network. They change dollars to Zooz, which leads to an increase in the value of the currency to $ 2 per 1 Zooz.
Now you can afford 2 trips for 1 Zooz. You sell half of your Zooz to someone who needs one Zooz and makes a profit.
The drivers see that now Zooz started to cost 2 dollars, and it is more likely to accept this currency. And in the future the community will only grow.
In this case, the beneficiaries are not the owners of the network, but its participants . So soon all the modern systems and networks will begin to change. Why does Facebook get all the value from your posts? It should be received by you.
Similar changes occurred with the well-known Bitcoin currency for the past 9 years. You can start research yourself and invest in currencies that are now very cheap, but will soon skyrocket.
“But what is the benefit of the creators of these protocols?” you ask. They can keep with a certain number of tokens and get profit from them in the future. In this case, information about the number of tokens in the network creators will be available to all its participants. Another possibility of monetization is the application .
5. Distributed applications
With shared access to data and protocol, information management becomes more free and flexible . Let’s take as an example a photo.
You take a photo with your smartphone and save it on a cloud service. Now your photo is in the cloud and, to use it in any other application, you must first connect to the repository. And if you have multiple devices on different operating systems? You will need to save the photo and send it to other cloud services. In this case, the management of your own data becomes rather problematic .
But distributed applications (dApp) work differently. Data is distributed among all applications that use the protocol. In this case, you will no longer have to forward photos from one platform to another to simply edit it.
In this case, you can pay a small amount of tokens to developers for using applications to edit photos and create presentations.
As an end user, you will receive more fast, cheap and secure experience with applications, as well as confidence in exclusive data access. And the creators of dApp, after receiving a reward, will strive to create more valuable applications.
In this case, changing providers will be incredibly simple. Any user can change one payment application for Bitcoin currency to another in just 40 seconds and completely free. Imagine that you will be worth the transfer of an account from one bank to another.
As a result, the more valuable experience the developers will offer, the more they can earn.
6. Blockchain and marketing
Marketing will face many challenges in the transition to a new paradigm. There will be a great opportunity to completely revise existing industries and functions, as well as the process of creating and distributing value.
Marketers will be able to look at the possibilities of blockchain deeper and wider. It’s worth starting now. You know how quickly things change.