Maryam Mahjoub, Verasity’s chief advertising officer, is immersed within the chopping fringe of digital promoting on account of her position on the esports agency. The so-called ‘blockchain marketer’ dispells a number of the myths and confusion about crypto tech.
After working in blockchain for 4 years now, I can simply say the principle factor I hear after I inform individuals what I do is: “I’ve heard of blockchain, however I don’t get it. What’s it?”
Many have both heard of or have some understanding of Bitcoin – the primary instance of blockchain expertise. However Bitcoin, and all cryptocurrencies, are only a small (however vital) a part of blockchain expertise as a complete. As blockchain turns into extra mainstream throughout so many industries, it’s crucial that we as advertisers and entrepreneurs have a base understanding of the expertise and what it has to supply.
Let’s begin with Bitcoin. It’s a decentralized digital foreign money (which means no financial institution, nation or group controls it). It will possibly, and does, work like every other foreign money (the greenback, pound and so forth) – however you possibly can’t print or maintain it. As an alternative, you retain it in a digital pockets. And like common fiat foreign money, you should purchase stuff together with your Bitcoin – from present playing cards to actual property.
So what the hell is blockchain? It’s a decentralized ledger – which means information is saved on ‘nodes’ throughout the protocol, slightly than a centralized server. Transactions are captured in blocks which might be linked collectively (therefore the title). These blocks of transactional information are shared on each node, and can’t be edited with out making a transaction capturing that change. What this gives is transparency and immutability of data for all events concerned.
Bitcoin, the primary blockchain resolution, was created in 2009 – and the expertise has developed considerably since then. Now you may have decentralized finance, provide chain administration on the blockchain, blockchain in healthcare, NFTs and extra. That is the place my job as a marketer in blockchain grew to become actually difficult.
As blockchain expertise begins to cross the chasm into mainstream adoption, confusion in regards to the complicated expertise, its capabilities and its dangers stay very actual. This text is right here to set a number of the fundamental misconceptions of blockchain straight and assist present a easy and clear understanding of what blockchain can finally provide enterprise organizations.
Delusion: blockchain is restricted to cryptocurrencies
Bitcoin, the unique blockchain expertise, is now only one amongst hundreds of cryptocurrencies and tokens. This isn’t all blockchain is, although. Ethereum, a second-generation blockchain protocol, permits for the constructing of decentralized purposes (or DApps). These DApps are in-built an identical strategy to every other software we use on our laptops or cellular gadgets, however their information is managed on a decentralized ledger, so there isn’t any single server or single level of failure.
We are actually reaching the third era of blockchain protocols with initiatives reminiscent of Cardano, Polkadot and Solana. These protocols are evolving applied sciences designed for scalability and interoperability. It will permit for DApps to be extra environment friendly, refined and accessible.
Delusion: blockchain/crypto is for drug sellers, unlawful actions and crime syndicates
One main false impression of blockchain or cryptocurrencies is that as a result of they aren’t owned by any regulatory authority, they’re actually solely designed for individuals who want to preserve their actions hidden.
For one, most main crypto exchanges have stringent ‘know your buyer’ necessities – which means if you wish to purchase, promote or commerce your crypto you need to present authorities ID, proof of residency and so forth. We’re additionally seeing a variety of well-established monetary establishments and enterprise organizations settle for crypto as a supply of fee, from PayPal to Tesla.
Many governments are additionally leveraging blockchain expertise to construct their very own central financial institution digital currencies (CBDCs). China, Sweden and several other different nations are at the moment within the pilot section of their very own digital foreign money, and 80% of worldwide central banks are engaged in CBDC-related analysis [source: Impending arrival – a sequel to the survey on central bank digital currency].
Delusion: blockchain is restricted to the world of finance
Whereas decentralized finance (DeFi) is a significant a part of blockchain, there are such a lot of industries that may profit from blockchain expertise. Provide chain administration is a large alternative, and names together with Deloitte and IBM are creating customized options to assist resolve transparency points, gray-market buying and selling and administration prices. Manufacturers reminiscent of Louis Vuitton and different sub-brands of LVMH Group are constructing end-to-end observe and hint options on the blockchain. Why? As a result of blockchain is inherently immutable and clear – which means each stakeholder sees the identical data on the similar time, and no one can change it with out that change additionally being captured.
Blockchain can accomplish that far more. Non-fungible tokens (NFTs) have been throughout mainstream media, particularly when exorbitant quantities of cash have been spent on them. Merely put, an NFT is a singular asset that you may personal or commerce that can’t be manipulated. NFTs are increasing from digital artwork items to music, motion pictures and gaming. This shift has the potential to utterly change how enterprise is completed in every of those industries, reworking the way in which stakeholders collaborate with each other – however that’s an extended subject, to be addressed sooner or later.
These are some easy misconceptions and primary introductions as to what blockchain can do. In actuality, the appliance of blockchain expertise can match into so many industries in so many various methods. The truth that it’s so malleable additionally provides to the confusion of: ‘What’s blockchain?’
Hopefully with time, mass adoption and some extra articles, we will make the alternatives and worth of blockchain extra clear.