Social Media platforms entered our daily life. According to Newgenapps, more than 60% of U.S. residents have Facebook accounts. The active life online implies the right usage of the user’s data. There are a lot of issues related to privacy, targeting for advertisers, consumer service, etc.
The current reality and development of digital technologies require new approaches to management of the information flow. In this regard, Blockchain is of special interest.
This innovation based on cryptocurrency is considered to become revolutionary for many industries, such as medicine, insurance, banking, and marketing. Since the data storage is the basis of this tech, let’s try to define its influence on social networks.
The changes to come
At first, we need to understand what blockchain is. The decentralized encrypted database that consists of blocks. These blocks form a single chain. Each block is a number of transactional records. This is a public ledger, well-protected from unauthorized access.
Let’s look how blockchain impacts social media.
More opportunities for marketers
Social networks help business owners to find their customers. These platforms allow entrepreneurs to increase ROI (Return on Investment) faster than other advertising sources. Blockchain and smart contracts provide brands with better opportunities to reach quality customers and protect from ad fraud.
The possibility to reduce marketing efforts
Blockchain is a new technology. Today it is only developing. There are still many issues that need to be solved. The lack of knowledge and some standards impede the use of this encrypted system. However, the future of blockchain is not far off. The digital marketplace will transform as the business owners become familiar with the new tech. Blockchain can significantly simplify the process of targeting customers.
The rewards for users
Since blockchain is based on cryptocurrency, active social media users will get an opportunity to monetize their content. They can earn some amount of cryptocurrencies for the posts on social platforms.
Protection against fake content
Blockchain-based social networking will be safer and more transparent. This is connected with the opportunity to verify all data that are in the ledger. Blocks are encrypted, so nobody can distort information. Today social media are not protected from fraud and fake news. But in the near future, we’ll see absolutely new approaches to the spread of information online.
Social media advertising should also transform. Various bloggers and influencers who promote brands via online platforms have to take into account new conditions. The deep knowledge of blockchain tech and its implementation help them to increase their revenues.
Blockchain is very promising. It will influence social media platforms, digital advertising marketplace, and many other spheres of life. The key benefits of this technology are transparency, safety, and opportunities for building strong relationships with customers.