Blockchain represents a revolutionary technology in the contemporary world, changing various businesses significantly. The Distributed Ledger Technology (DLT) seeks to transform business marketing, with a possibility of remaining pivotal in the future. The technology stores data in blocks that are then chained, culminating in a database collectively controlled by the users (Tedx Talks, 2017). The technology remains promising, owing to its capability to reduce risk, eliminate fraud, and enhance transparency. Although the standard Blockchain technology use is in cryptocurrencies, it remains critical in digital marketing and consumer analysis. The current paper evaluates how blockchain increases knowledge relative to consumer preferences.
Blockchain offers a public distributed ledger of consumer transactions. The Distributed Ledger Technology (DLT) allows person-to-person access to consumer transactions. Peer-to-peer transactions where clients transact directly without needing an intermediary, including banks, make access to consumer data possible for individuals who possess the digital key. The service is facilitated through crypto-encryptions, with the client possessing the digital key to decrypt. The transaction that happens presently is put into a block; the block is linked to the consumer’s previous transactions’ blocks, making it easy to access the client’s cryptocurrency transaction information (IBM, 2017). Blockchain technology facilitates the transfer of data from one consumer to another securely, eliminating intermediaries that compromise the data. Essentially, blockchain technology makes consumer transaction records accessible, increasing knowledge regarding consumer preferences.
The Distributed Ledger Technology provides digital marketers with an approach to verify ad spend. The traditional digital marketing environment was vulnerable to fraudulent inventory, making the available data for marketers inaccurate. However, presently, blockchain technology presents actual verification, rendering digital marketing transparent. Blockchain (2018) contends that blockchain technology guarantees that target consumers accessed the advertisement, culminating in a significantly accurate digital attribution. Blockchain eliminates third-party data validations, diverting authentication to a decentralized security layer. The technology offers a distributed network that registers and authenticates data transactions without third parties.
Blockchain technology facilitates quality consumer information acquisition. Currently, individuals are interested in regulating personal information distribution, owing to unauthorized personal information use. The old-fashioned approach makes consumers get ads from companies to which they are not affiliated due to unapproved personal information sharing by marketers. Blockchain technology gives consumers data control, guaranteeing that only companies of their choice acquire their information (IBM, 2017). The approach ensures that organizations get accurate information regarding consumers’ interests and curiosity about the companies. Notably, consumer personal data controller ensures increased knowledge of consumer preferences based on accurate data.
Artificial intelligence diversified digital marketing, giving an advantage to businesses. However, blockchain has made the ground even, giving consumers more control over the data. The technology eliminated the traditional centralized central systems, providing the consumers power over their personal data. Notably, blockstack diversifies the approach to digital rights protection, allowing consumers to regain their data upon completing the use of a particular application (Blockchain, 2018). Initially, significant applications required consumers’ data, and the data was left in the application.
Marketers used such information in digital marketing, but the approach is different through blockchain technology. A Blockchain represents a database with built-in verification that is not regulated by a specific entity. Instead, it is distributed, culminating in existence on various computers simultaneously for anyone interested in maintaining a copy (IBM, 2018). Consequently, significant individuals make entries to these information records, accumulating knowledge. Blockchain will allow ad networks by-passing, resulting in person-to-person transactions that promote better consumer knowledge.
Conclusively, blockchain technology remains a critical aspect of contemporary digital marketing. The technology promotes consumer information privacy, fostering consumers’ information ownership. Blockchain’s intrinsic ledger-based transparency enhances improved trust between companies and consumers, stimulating markets for consumer data. Consequently, blockchain offers consumers a transparent look at how advertisers use their data. Equally, the technology promotes quality consumer data acquisition and verifies ad spending.