What is blockchain? Many of you have heard of terms such as blockchain technology along with cryptocurrencies such as Bitcoin. Blockchain is one of those terms that you may have heard of but has difficulty explaining well. Since this technology has the potential to be used in the marketing domain as well, we will explain it in this article.
What is Blockchain
Blockchain is a combination of decentralized networking and cryptography, so called because transactions are recorded in chunks called blocks that are connected like a chain along a timeline.
Transaction data is recorded in transaction blocks that are linked like a chain, and the data is shared and managed by multiple computers connected to a network. This characteristic makes it a distributed ledger, but the shared ledger also offers several advantages, such as tamper resistance and the ability to maintain the system in the event of failure.
Features of Blockchain
Blockchains are highly resistant to data tampering. Blockchains have a previous hash value (a value generated by a hash function) in every block created in the past. This makes tampering difficult because if past data is tampered with, all subsequent data must also be changed. Also, because it is decentralized, even if some data is changed, it will not match the other data, making data tampering and fraudulent transactions nearly impossible. The distributed network also has the advantage of not requiring large servers and can be operated at a low cost.
Blockchain is being applied not only to bitcoin and other virtual currencies but also to a variety of other areas. In finance, it can be used not only for payments and transfers but also for securities trading. In medicine, it could be used for electronic medical records and prescriptions, and in retail, it could be used for product traceability and loyalty point systems.
Impact of Blockchain on Marketing
Blockchain is spreading to various fields, starting with NFTs, which are being used to prove that media content is the first source of distribution and primary media, as well as for copyright management and content sales for text, images, and video. Proof of ownership of real estate in the metaverse is also beginning to be issued by NFTs using blockchain technology. New media using these technologies may also emerge in the future.
As technology evolves, so do media. Blockchain is often thought of as a financial-oriented technology, but it is creating new formats in various fields, including digital art and other media works. It is becoming essential to understand blockchain as fundamental knowledge in the Web 3.0 era.