The next revolution is on its way, the new technological player which came up with a new digital relationship means – a digital token whose value is not determined by the value of a commodity or by one central body, but by an agreement between a network of users (Bitcoin, , Ethereum Ripple, etc.).
This financial-marketing-business tool operates in an environment free of any central entity to supervise transactions, replaced by a set of computers that approves them. Confirmed transactions are sealed and encoded through an endless chain of blocks, which translates into a decentralized economic system – removing the financial control from the bankers.
Many tokens are already available today, attempting to come up with new relationship models for internet companies and users. Cryptocurrency will enable new business models based on a new win-win democratic model (not just companies such as Google and Facebook that earn their fees from content and users’ engagement). In other words, we are about to take part in the new democratization, where the power from central entities that trade information is shifting to the information daily owners (the users).
Today, two main players are present in this field:
1. Crypto coins whose purpose is to preserve and transfer value (like Bitcoin).
- Companies that offer content, shopping, information, community. Applications offering token based new business models, have added a layer of reward and user involvement based on the system’s currency.
How does this affect the content area?
We will witness more and more marketing activities that use token micropayments- based solutions wishing to reward content producers for their input. These content platforms reward writers, content distributors and other community activists, in currencies. The format is simple, those with more tokens, have the highest significant impact on the site and consequently will be promoted, and their feedback heard more. The more active the more tokens your win (you can also buy tokens).
How does this affect communication?
The democratic system will make it possible to use means of communication such as non-centralized non-supervised, non-managed messaging software, which does not gather information about us. The software requires token payments but we get to keep our personal data
How does this affect gaming?
Gaming platforms and applications are often based on the tendency of players to improve their experience by moving forwards to advanced levels and acquiring, on the move, add-ons and applications. This area is going to change to buying tokens with currency for accessories, extensions and add-ons for the game itself. The gaming field will become a buy-to-sell token-based marketplace with the option to exchange it for external currencies.
How does this affect advertising?
Advertising is in a predicament – advertisers have lost faith in the revenue they were supposed to get. Questions such as ‘how many people actually saw the ad or how many people are involved in the broadcasted ads’ cloud the continued relationship between brands, advertisers and media.
These questions might disappear with the proper assimilation of Blockchain based solutions by implementing a system of engagement and reward for people exposed to the ad. A user will receive a token every time he watches a commercial and the advertisers will receive accurate data on entries and engagement, and so will the brands be able to track their exact exposure.
How does this affect the media?
The publishers of recent years are battered and losing their business – they lose money (ads) to Google and social networks. They also lose loyal readers / users to the elusive social world.
The Blockchain-based range of currencies could be these media companies salvation: More publishers will join micro-payment – a new token-based business model. Users will receive tokens as they spend more time on the site or reading an article and the tokens will start trading and produce revenue for both parties.
To conclude, Blockchain technology and digital currencies is great for content and media companies, advertisers and of course consumers and users. This technological revolution will lead to a real upheaval of the media, advertising, content and communication. A real revolution that happens once every few decades. Media companies, publishers, advertisers and communication companies need to study the issue and create an updated strategy for the coming years.