Blockchain is a disruptive technology that didn't enter the market quietly — it opened doors and made its presence known. But while blockchain is shaking up the financial sector with cryptocurrency, this new kid on the block is not. 

Blockchain ledger technology has proven to be incredibly valuable to many industries beyond its more familiar use in cryptocurrency. From asset management and tracking to regulatory compliance, blockchain technology gives businesses new capabilities and opportunities to use them. 

While many of these blockchain services are still in their infancy, implementing this disruptive technology into your marketing suite can provide the following value for your business and clients, including increased transparency and trust; reduce ad fraud; and increase security and privacy. 

While many people still see blockchain as this mysterious and distant technology, it is becoming increasingly clear that Web 3.0 will revolutionize the world and our industry. That's why I'd like to discuss three primary areas where blockchain will revolutionize your digital agency and deliver immeasurable value to our businesses.

Blockchain increases transparency and trust 

Blockchain is a decentralized technology that does not rely on a central point of control. Instead, its functionality relies on the consensus of a large network of nodes to confirm and approve any transaction on its chain. 

With traditional computing systems, data is usually stored in a client-server network and relies on a central database. Every calculation and action taken feeds into one place and all action items are kept in one central location. Unfortunately, this model puts a lot of control in the hands of Internet providers as "trusted third parties". 

Blockchain turns this model on its head, hosting blocks of transactions on hundreds, if not thousands, of computers worldwide, decentralizing it. Most importantly, this information is fully available for anyone to find and verify on the public ledger. With blockchain, any changes to the chain will be irreversible — stamped, acknowledged, immutable, and visible to anyone going forward. This technology is very similar to how peer-to-peer networks work. 

This puts transactions back in people's hands and makes data trusted again—and gives your audience—more control over their data. 

So how does this principle of transparency and trust apply to marketing? 

Simply put, using blockchain for marketing builds trust and increases transparency with our clients. For example, blockchain can show consumers how big businesses' advertising efforts are using their data. Unfortunately, with a centralized client-driven database, it's nearly impossible to tell what a company is doing with your data, how they share it, and with whom.

Blockchain reduces ad fraud 

A study by Forrester found that 69% of brands that spend more than $1 million per month on advertising say at least 20% of their budget is wasted on digital ad fraud. As a result of these fraud schemes, many corporations are searching for ways to prevent digital fraud and tighten security measures. 

To reduce ad fraud losses, companies have had to significantly reduce advertising budgets. One such company was Uber, which cut $100 million in advertising spending to save money. However, after the cut, Uber saw no change in conversion or activity numbers on their data side. Upon further investigation, they found that their ad budget was still being eaten up by fake apps, bots, and phantom clicks.

So how can we avoid making the same mistakes as Uber and protect our ad spending from fraud? That's where blockchain comes in again. 

A particularly helpful use of blockchain is through user verification. Blockchain can be employed in ad networks to cut out the middleman and track who clicks on your ad and fight fraud. 

Using Open Ledger, blockchain enables advertisers to identify the source of fraudulent or wasteful clicks and blacklist fraudsters. While there are latency issues and barriers to widespread adoption, blockchain can theoretically be scaled to address fraud issues across all ad networks. For example, Toyota has had early success in employing blockchain to detect fraudulent clicks/traffic and reduce wasteful spending. 

Blockchain's combination of transparency and accountability can reduce ad fraud and help businesses gain greater accountability over their business's digital spend.

Blockchain provides security and protects privacy 

Protecting data from theft and damage is a priority that many small and large businesses have had to focus on. In 2021 alone, data breach costs increased from $3.86 million to $4.24 million, the highest margin of lost funding in nearly 20 years. As we move our day-to-day business operations to the cloud or connected devices, this number is likely to grow. 

Enter Blockchain for Cyber Security. Security is an inherent part of the blockchain ledger, as each time a new chain is created, it is encrypted and then linked to previous transactions. Once these chains are created, they are impossible to change or hack. 

From a marketing perspective, creating smart contracts using blockchain is a way for businesses to provide additional security measures and reassurance to clients. Smart contracts provide additional security by verifying, recording, and encrypting all blockchain transactions. These contracts can automatically generate backups and duplicates, providing additional security, trust, transparency, and security. 

By using smart contracts, digital companies can establish greater trust with clients and protect their data and privacy.

Blockchain is the future 

While blockchain still seems like some futuristic technology we read about in journals, major corporations like Microsoft and Amazon have already switched to blockchain to improve everyday processes and online security. 

It seems like every day we read about new cybersecurity leaks and hacks by malicious actors. However, it seems almost impossible to prevent someone from stealing our financial and personal information. Unfortunately, the marketing industry can relate to this as it has long been a victim of ad fraud and digital theft. 

This is why blockchain is a great investment not only to build trust among our customers but also to protect our collective online privacy and reduce fraud and theft. Philosophically and pragmatically, blockchain presents a vision of a more secure and trusted digital experience. 

Clearly, blockchain and cryptocurrencies will have a significant impact on Silicon Valley over the next decade and as the next layer of the Internet is created. The question is, how do we influence the direction of the Web 3.0 tsunami that is coming to deliver more value to our clients, or will we lose out to those who took the early steps toward adoption?