What are the latest buzzwords these days? Bitcoin and cryptocurrency. Why? Because blockchain technology is a revolution which is impacting more and more industries, including banks, governments and even the marketing sector. Furthermore, according to the Statistica Report, 2017, the global blockchain industry is expected to grow to at least $2.3 trillion annually by 2021.
Of the many existing sectors that are endorsing this new technology, S4FE is the world’s first blockchain technology-based global database for the registration and identification of stolen or lost items.
S4FE’s CMO Recep Avci says his company uses freely accessible, blockchain-based technology to create a global network for the registration, search, verification and identification of (lost or stolen) property. “We have worked hard to offer something useful and along with our hardworking and dedicated team we have made it work with a strong real world use case designed to benefit the global community.”
The Advantages That Blockchain Offers CMOs
The marketing ecosystem is rapidly implementing this new piece of tech because of the many benefits it brings: decentralized data, privacy, and transparency.
Decentralized Data – Internet users do not have exclusive control over the data they share. A novel approach that has emerged from blockchain technology is the decentralized model that has redesigned the way we manage digital information. Also, by eliminating the need for middlemen, people are now be able to share their details without needing the centralized oversight to keep their precious information safe. Plus, the extra fees you would have to pay third parties for their involvement are eliminated.
Privacy – This aspect is so important to marketers because they need to build trust with their clients. Nowadays users have to provide a lot of sensitive data about themselves in order to have access to different websites. Blockchain has the advantage of automation and thus makes processing information more secure because it uses a protocol that defines detailed event information, along with a clear cryptographic means of verifying transactions.
Transparency – The nature of blockchain is to safely and transparently share data between different groups of individuals worldwide. Marketers embrace this concept, because it lets their customers monitor how their business handles and tracks clients’ digital details. By doing so, every party involved feels at ease with the company’s practices.
Threats For Which To Be On The Lookout
As a CMO, your primary focus is to keep the business running and do your best at it. Consequently, when dealing with a new, promising technology, the person in charge must first analyze the fundamentals of blockchain before leveraging it into their business. In doing so, considering possible threats that could harm their organization is a crucial aspect.
Hacks – The online ecosystem cannot exist without malicious operations that can hack even the safest of systems. No matter how powerful blockchains may be, they are not immune to attack because like any technology, they have their weak points and attack vectors. Some examples include: sybil and routing attacks. What CMOs can do to prevent such dangerous activities is to check their Proof-of-Work algorithm and to verify the legitimacy of their Internet Service Provider (ISP), specifically how they protect themselves against online threats.
Electricity Cost – Everyone has acknowledged the great impact global warming poses and the general focus has been put on environmentally friendly practices. Unfortunately, blockchain requires the use of large amounts of electricity for all its processes and apps to function properly. As a result, adopting this emerging technology will mean that the electricity burden will be at increased rates, especially with new environmental regulations on the way. And as a CMO being aware of this situation when planning new budgets is crucial, in order to be prepared and make accurate and well-informed decisions.
Regulatory Status – Since the implementation of this approach is relatively new it has an uncertain regulatory status, creating a potentially unstable climate. Businesses may spend months establishing a business case, testing approaches and proving their concepts to speed up settlement or lower processing costs. But all of this may be interrupted by internal audits – in the legal and compliance realm.
Basically, you have to prove your blockchain application works and you have to do it to people who still don’t understand it or are still developing blockchain skills. As a result, the future may is ambiguous not knowing into which legal sphere these processes will fall. Undoubtably that this is an aspect CMOs cannot overlook and they may need to carefully measure the advantages and risks blockchain implementation holds, in order to ensure that their business will prosper in the future.