Blockchain and cryptocurrency have become buzzwords far beyond the world of digital marketing and technology. Experts predict that the blockchain market will grow to nearly $40 million by 2025. But while crypto-related buzzwords have become inevitable on a daily basis, everyone is fully aware of what the move to blockchain technology means for brands, consumers, and digital marketers. It does not mean.

Related: 4 ways small businesses can benefit from blockchain

What is blockchain and how does it work?

A blockchain is an electronic ledger or database. They store information in digital form, shared among various connections in a computer network. Blockchain is different from other databases because its core technology ensures the security of records.

Another difference between blockchain and other databases is the structure of the data on the ledger. As the name suggests, blockchain groups data into blocks. Think of them as individual rooms or compartments in your storage facility. When one block reaches capacity, it is closed and linked to the previous block.

This is how a chain of blocks is created. Information added after the block is closed should be saved in a new block. As new blocks are completed, they are added to the existing chain. In addition to creating a chain, blockchain storage also creates a chronological timeline of when data was added.

A few years ago, blockchain was not a household name. That changed with the advent of cryptocurrencies. Due to the growing popularity of Bitcoin and others, the use of blockchain as a ledger for transactions is also increasing. One of the biggest differences from other databases is that blockchain-based data is held collectively by all users rather than his one central organization.

What does blockchain mean for marketing?

The financial industry was one of the first industries to adopt and invest in blockchain development. As a result, the industry continues to hold the majority of the market.

Digital marketing as an industry is just beginning to embrace the potential of this technology and create use cases. But while marketers may lag behind their finance colleagues in adopting blockchain technology, marketing is certainly well positioned to benefit from blockchain applications.

The technology continues to evolve even at this stage, with new use cases being discovered almost daily, including some in digital marketing. Without a doubt, blockchain technology and Web 3.0 applications will improve the way digital marketers handle data.

Blockchain enables digital marketers to:

• Increase transparency for advertisers and marketers
• Quantify marketing campaign results
• Fraud prevention

Increased transparency for brands and consumers

Consumers have long asked their favorite brands for greater transparency. At the same time, they are protesting attempts at greenwashing and other tactics that might win consumer support.

Blockchain technology can end problems like greenwashing as the ledger irrevocably records the legacy of a particular product. Consumers will be able to see far more detailed information about specific products than they currently have. Brands benefit from the ability to increase consumer confidence. For example, organic and carbon neutral product claims can be quickly verified with this technology.

Marketers looking to advertise will also benefit. Greater transparency means you can see what your audience is claiming more quickly, making it easier to choose the right advertiser for your brand.

RELATED: 5 Examples of Companies Thriving with Transparency

Quantify marketing campaign results

For years, marketers have tracked keywords to gauge the success of their campaigns. Despite the monitoring options offered by search engine operators, quantifying campaign results is not always easy.

For example, tracking organic search engine optimization results is a difficult task for marketers. Differentiating keyword results on different devices can be as difficult as differentiating local or national search engine rankings.

Blockchain, with the right tracking software, could provide answers to the guesses marketers are still making. The ledger shows the actual numbers of each keyword’s performance and can be tracked over time. Data with this level of accuracy is worth more than reports. It also forms the basis for truly data-driven campaigns.

RELATED: Why Marketing Agencies Should Use Blockchain Technology

Data fraud prevention

Blockchain technology gives consumers more control over their data. Marketers need to develop more secure ways to store and access consumer data.

But blockchain fraud prevention goes further. Digital marketing is currently plagued by click fraud in pay-per-click (PPC) advertising campaigns by illegal suppliers. We can put an end to ad fraud by tracking clicks and providing end-to-end transparency.

Fraud prevention benefits digital marketers and clients. Marketers will find it easier to prove the effectiveness of their results to their clients. Clients benefit from being able to track each interaction and get to know their actual customers better.

Improving digital marketing

Leading marketers have emphasized trackable and measurable results for years. Measuring and tracking campaign performance is one of the main reasons why digital marketing as a field is growing in popularity.

Blockchain technology is well positioned to further exploit these advantages. Blockchain technology makes it impossible to alter campaign results by recording clicks and other interactions in a clear ledger.

This development will not only increase trust between marketers and their colleagues, agencies and brands. The move to blockchain technology could usher in a new era of marketing. Results are no longer questionable or attributed to the wrong activity. Marketers will find it much easier to demonstrate the value of entire campaigns and individual activities within those campaigns.

In short, blockchain technology has the potential to usher in a new era of digital marketing accountability.

Related: How Blockchain is Creating the New Future of Digital Marketing