Blockchain: How the technology behind bitcoin should impact Digital Marketing

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You may have heard of bitcoin and blockchain. These technologies are interconnected and had a major impact in 2017 and an even greater disruption may arise in 2018.

The bitcoin has gained much popularity in 2017, when its value went from less than 5000 to up to 60 thousand reais at the end of the year.

This sudden appreciation put the criptomoedas the spotlight and led to the creation of hundreds of altcoins (criptomoedas created after bitcoin).

Similarly, the recent drop in the value of bitcoin generated great concern of investors.

But the difference between bitcoin and blockchain and how they will change the Digital Marketing?

The bitcoin began in 2008 and was one of the first criptomoedas that arose. Recently had a popularity explosion to provide transparency and independence of a central body.

Behind the bitcoin is blockchain, a concept structure that ensures transparency, reliability and decentralization of data through the virtual medium.

We can say that bitcoin was the first experiment in virtual currency that uses blockchain as a base.

The structure of blockchains is analogous to a financial statement. Every operation that adds, removes and transfers resources is registered and ensures that no changes can be made in the block without all the other actors to agree to the operation.

This, coupled with the decentralized nature of blockchains, makes the possibilities of fraud are reduced.

The technology creates various optimization possibilities and improving the current system of selling and buying online advertising.

Transactions can be made without the need of a mediator – currently the largest purchase of mediators and media sales are Google and Facebook and they charge a generous portion of your investment, which ultimately inflating advertising costs.

The blockchain solves this with a structure that allows advertisers to connect directly with traffic providers. In addition, you can add parameters in blockchain to register (unchanging, reliable and anonymous) user characteristics that clicked on your ad.

More power for advertisers

As advertisers are trapped by centralizing agents, another problem arises: transparency.

A very strong complaint from the market is the lack of transparency regarding the performance of sales ads. Who is publishing has difficulties in confirming and audit the campaign performance statistics.

But why all this paranoia? Mediators are unreliable?

The sale of online ads is not simple. According to the annual bot traffic report released by Imperva Incapsula , almost 50% of all traffic generated on the web are bots.

This generates a question on the quality of the traffic you are buying, as bots have not seen customers.

With the use of smart blockchain and contracts all this traffic can be recorded within the blocks, giving the possibility of third parties to audit and develop new mechanisms to identify bots.

ICO: a new way of capturing investments startups

ICO is short for Initial Offering Coin, which in Portuguese means the initial offer of coins.

In practice, when creating a new cryptocurrency or tokens, the creator has the ability to generate a certain number of coins before distributing the code to the community.

It is in this aspect that the startups are utilizing ICO as a way to raise funds during the embryonic stage of the company.

There are various strategies used by companies to show value and sell their tokens before the company starts operating.

Normally the company’s product is tied to the offered token, so the product by the increased demand also means an increase in the value of the token on the market.

The Ecoesfera of COs is still in its embryonic stage and there is little regulation in this market. Therefore, the investment risk for lay people is still very high. There are no rules that guarantee minimum quality and commitment of the companies with coins sold.

Currently, COs can be divided into two major groups: services and currencies.

Companies offering a service usually have their operation linked to a blockchain and can use an existing cryptocurrency technology, and its major difference in the way these criptomoedas will be used.

COs have the focus on currencies do not provide a specific service linked to cryptocurrency. Therefore, the differentials are improvements and improvement of the technology itself (reduced time and lower transaction cost, intelligent contracts etc.).

Investment in ICO is still not suitable for laymen on the subject, because the risk is too great.

As we can see in the chart below, the volume of money invested in COs had a large increase in recent months.

Within the new COs companies are very well structured and with a super well-defined roadmap, but at the same time there are other companies that are unreliable and never get to deliver the promised product.

ICO Funding

Source: CoinDesk

Because of this uncertainty in investment in COs, some services such as IcoRating emerged. The site is an assessment of each ICO and gives a score in three categories: investment, hype and risk.

Although review sites are a good starting point, investment in COs are risky even for those who have deep knowledge of the company.

Companies that use the blockchain to solve problems Digital Marketing

Meet some companies that are already using the blockchain as a way to solve problems in Digital Marketing Strategy:

The Userfeeds is banking on decentralization of large media mediators.

Your tokens system promises a system that will allow the user to negotiate directly with the advertiser.

Thus, a special algorithm rankeia contents based on the advertiser’s reputation in the user profile and the amount offered. Thus, you will receive the ads you display and have full control of your feed.


The adbank is one of the most promising startups of the moment in the marketing segment. Headquartered in Canada, they have the proposal to replace the large media sellers.

The main difference is in its operating structure. Adbank entire system was built upon cryptocurrency Ethereum and its smart procurement system.

Thus, the commitment adopted by the company is guaranteed by a smart contract. In addition, the company is raising funds through the issuance of its own tokens in an initial supply of money (ICO).

Subsequently, these tokens can be used in media buying or even traded with other users interested in using the platform, ie the value of the tokens is related to the success of the platform.

As the number of tokens is practically constant, which is expected to occur if an increase in demand, the value of the token go to balance the price.

It is with this commitment that adbank has sold more than 7 million dollars in tokens before they come into operation.

The company promises to end transparency problems, costs associated with the mediator and better quality traffic with the bot identification.

The blockchain proposed by adbank system has elements that will facilitate the transfer of value between the advertiser and seller traffic, and ensure full transparency about the campaign performance.


The adChain was built by Metax and aims to improve the relationship advertisers and content creators.

The adChain system allows, through the use of their tokens, be possible to trace all the “path” of an ad, giving the user the ability to use these same tokens to identify advertisements with low value and fraudulent action.

The incentive for actors to “clean up” the chain comes with the reduction in the cost of ads, that is, the more low-value ads your own ads are identified will be cheaper.

In late June 2017, the adChain raised more than $ 10 million in less than 6 hours. The company has not delivered its promises blockchain and finish the whole process of testing and auditing by the second half of 2018.

What to expect from blockchains?

An interesting aspect of blockchains is the ability to describe anonymously all the states of the system over time. That is, in the case of financial transactions, you can anonymously track all transactions ever made in the history of a blockchain.

This open feature enables third parties to develop analyzes that can take insights just studying the development of the block centers.

In the year 2018 it is also expected strong growth in the field of artificial intelligence, machine learning and virtual and augmented reality. Allied to blockchain, these technologies have the potential to create new markets that did not exist.

The company adbank, for example, is betting that growth. The startup, which has received more than $ 7 million investment, is still in its early stages, but has indicated the use of technologies of machine learning and blockchain for detecting generated by bots traffic.

We do not know what will be the future of criptomoedas, but everything indicates that this technology is here to stay and start a new era not only in Digital Marketing as in several other areas.

What do you think? The criptomoedas are only a trend of the moment or will change the Digital Marketing forever?