Blockchain technology has been the talk of town since its inception. And why wouldn't it be? It offers everything we want to integrate in the financial sector. For instance, blockchain technology can create a more secure environment for transactions. It's much quicker and more efficient than the traditional ecosystem.
Besides, with blockchain you can store and record every type of data in a single infrastructure. It's also virtually impossible for someone to steal or alter it. So, it's a solution where everyone benefits for you.
Another benefit is that the buzz around blockchain has led to the development of many trading and suggestion-related apps, such as Quantumai App.
But here's the thing, blockchain technology isn't perfect. Although it might appear so, it still has some flaws. Read on to learn more.
What's the advantage of using blockchain?
Before we get to the downsides, let's learn about the positive impact of blockchain technology in marketing.
- With blockchain technology, you can eliminate the need for a go-between by using a smart contract.
- You can avoid the need to subscribe to Google or Facebook to talk with your audience directly.
- The overall security of blockchain, although a little flawed, is better than traditional infrastructures. The risk of the data being stolen or modified is minimal due to the block-and-chain system.
- The transparency of blockchain can help you prevent fraud and avoid overdue payment as blockchain's transparency makes it clear when customers have reimbursed you. Customers can also track what they've paid - so it's fair from both sides.
In addition, blockchain can also improve and strengthen the process of content monetisation.
Why should you be concerned, though?
Unbelievably, blockchain can affect your marketing strategy in many ways. So, knowing about the downsides and planning how to mitigate them will be key to your success.
Problem 1: Inefficiency
Yes, blockchain technology can be inefficient. For example, if you want to use a single network, you might encounter a storage issue after a while. In addition, as the size of the blockchain grows, it can slow down the network a little which is not ideal for commercial purposes.
Problem 2: Immutability
The data in a blockchain ecosystem isn't mobile. If your company owns more than 50% of the available nodes, you'll be in total control of the whole thing. This, in turn, can make the environment a lot more vulnerable to hacking and fraud. Another issue is that you cannot remove the data you've written.
Problem 3: Security risks
While blockchain is much more secure than a traditional transactional medium, there's still something lacking on the security front. For example, activities like 51% attack or double-spending can seriously damage a blockchain leading to data loss. A well-deployed DDoS attack can also cause serious problems!
Problem 4: Cost
The cost of implementing a blockchain-based infrastructure is high. When you're working on it, you'll require a hyper-ledger which requires a sizeable investment.
You'll also need to hire someone specialising in blockchain to create or use the platform properly. Additionally, managing a dedicated team and acquiring new licenses can impact your overall budget.
Problem 5: High energy consumption
Bitcoin mining is energy intensive. Add to that blockchain maintenance and the level of consumption will be higher. Such massive energy usage can adversely affect the environment and is likely to increase your carbon footprint too.
Where does that leave us, then?
If we're being honest, blockchain might be the future of digital marketing. However, if you want to make the most out of it, you'll need to implement the technology efficiently. You should also take account of the disadvantages of blockchain technology, so you don't end up failing. If you're not knowledgeable in blockchain technology, we suggest you engage an expert.
Copyright 2022. Featured post made possible by Mashum Mollah.