The popularity of cryptocurrencies has spurred active debate over blockchain technology. How can this novelty influence online advertising and app marketing? Is it a break towards an innovative approach or just another dubious idea?
Some experts compare the emergence of the blockchain with the advent of the Internet. The new decentralized encrypted system really has a great potential to bring huge revenues. At the same time, there are a lot of manipulative statements in this area.
We need to come to grips with what that the tech means for the future of the digital industry.
Restrictions connected to the use of blockchain
Although the majority of marketing specialists predict a great future for the blockchain, there are still some limitations we need to take into account. These disadvantages do not allow implementing new tech with reasonable success.
Let’s define the main drawbacks.
Slow process of verifying transactions
Blockchain-based smart contracts provide market participants with an opportunity to make transactions safely. The digital advertising becomes more trustful and transparent, in this case. However, the low speed of these transactions remains a great issue. Such latency creates many obstacles on the way to successful business development.
We can compare blockchain system with a large network. When transactions are placed in this chain, all players should record and verify them. This process takes much longer than the real-time bidding requires.
When it comes to cloud-based applications, it does not provide high efficiency. So, such an approach just takes an awful lot of work.
The wide implementation of blockchain implies faster processing.
The high cost of computing transactions
The processing power of blockchain demands huge investments. It is too expensive. There are a lot of technical issues the marketers need to solve with the help of programmers and developers who can write efficient code. Blockchain-based advertising won’t be successful without it.
The creation of high-quality and effective software to calculate transactions becomes a necessity. We need the processing power that costs less.
With the expansion of the blockchain network this problem has only worsened. The more participants and computers are in the ledger, the more units need to be synchronized with the transactions recorded.
Limited data storage
With the blockchain, the information is stored in blocks. Each block can contain the limited data. The number of such blocks is also restricted. The whole chain must be verified by each node within the network. This limits the speed and power of processing.
There are also some challenges connected with storage monetization. Cloud-based platforms imply monthly or annual fee for the limitless amount of data storage. You get access until you pay. Then you should regain access to the files, otherwise, you lose it.
When we work with blockchain technology this scheme does not work. Encrypted ledger saves information forever. So, the pricing issues the time value of data are indispensable.
As you can see, blockchain has some disadvantages when it comes to digital marketing. The low speed of transactions, issues with limited storage, and additional costs require further improvement of this technology.