Why Are E-Commerce Businesses Adopting Blockchain Technology?

 

 

Digital marketing leverages new channels to access social media that provide innovative, cost-effective, and influential capabilities to engage with you. New technologies and mobile applications have altered the e-commerce platforms enabling a broader reach, increasing brand trust, and enhancing customer loyalty. But these technologies have put you at the forefront of security, privacy, trust, and transparency challenges. From a consumer-centric perspective, blockchain technology has the potential to confront these challenges.

 

Blockchain Technology

 

Information is crucial for a business to run. Blockchain is ideal for delivering that information because it provides immediate, shared, and completely transparent information stored on an immutable ledger that can be accessed only by permission network members. It can track your orders, payments, and much more. 

Therefore blockchain can be defined as a decentralized ledger or database containing a “chain of blocks” to store information. The data can be related to transactions, date and time, participant details, and so on.

 

Benefits of Blockchain in E-Marketing

 

The primary feature of blockchain technology is peer-to-peer communication eliminating the need for centralized third parties to control the flow of transactions. It can substantially transform your relationships by enhancing data and improving privacy and security. It also allows innovative forms of consumer loyalty programs which helps to create additional value. Some of the benefits of blockchain in e-marketing are:

 

  • Fostering Disintermediation

Platforms like Facebook, Twitter, and Youtube rely on income through data and targeted advertisements. The business on these platforms relies on information intermediaries as they provide tremendous information about the demands for goods and services. But these intermediaries do not allow brands to make their own decisions and so stagnate their innovativeness and their ability to generate new prospects and target offerings. 

Blockchain application like “Shopin” connects retailers and customers without any intermediaries and help retailers to get a better insight into customer behavior. Here customer information is stored with their consent ( for which they are rewarded in cryptocurrency) and shared with the retailer.

 

  • Combating Click Fraud 

 

The Internet has enabled brands to promote their products and services online and establish relationships with their clients. But the reputation of the marketing and advertising industry has been plagued by a never-ending series of frauds, scandals, and deceptive campaigns. Click fraud has been identified as a severe threat to online advertising.

Blockchain technology can mitigate the impact of click fraud by creating a trustworthy digital marketing environment for consumers and brands. It assists in eliminating irrelevant ads and managing better data clicks, impressions, and revenue for each website linked to the system, thus helping advertisers optimize their budgets.

 

  • Reinforcing Trust and Transparency

 

The Internet enables transactions in the absence of face-to-face contact. In digital marketing blockchain technology allows you to operate with brands in a more secure and transparent system. 

 

  • Enhancing Digital Marketing Security and Privacy Protection

 

In the digital world, information security is important as brands become the stewards of your Personal Identifiable Information. The Data mining techniques enable brands to identify, track, collect, and process consumer information. The emergence of blockchain technology has benefited both brands and you by serving as an appropriate storage area, transaction space, and retaining a large amount of your information. Here transactions are entirely private, and you can encrypt your credentials resiliently. Blockchain technology increases accountability, accurate monitoring, and evaluation. 

 

  • Enabling Creative Loyalty Programs

 

In an e-commerce platform to enhance retention, brands collect and store data through their loyalty programs. These tools increase brand loyalty and enlarge their customer base. 

Blockchain technology can reform how loyalty programs are designed, tracked, and communicated to consumers. Here loyalty programs are fully integrated. It helps to address the problem of incompatibility resulting in increased channel harmony and consistent experience among brands. 

It creates a secure and interoperable environment that is unattainable with centralized loyalty databases.

 

Blockchain is one of the fastest-growing technologies today. It can generate immense benefits for organizations in manufacturing, healthcare, and education. According to Gartner’s 2019 CIO Survey, 2% of higher education institutions had already deployed blockchain.

 

Moonhive adopted blockchain solutions for its product “Oogyy” – an education platform ( LMS-Index (moonhive. in)), ( E-learning – Index (moonhive. in)), (Partial LMS / E-learning –  Index (moonhive. in)) to enhance the efficiency of student data management and create better ways to engage learners.