A bitcoin against a stylized grid in dark blue

Blockchain and Social Media

A new technology has emerged in the financial-technology industry that is looking to reshape the way we use the internet. Blockchain is an incorruptible distributed database of economic transactions that can record nearly anything of value. Each block records current transactions that once completed are then linked on a linear, chronological chain. Blocks are encrypted, meaning they can’t be altered or edited, only copied. The blockchain is decentralized, meaning it doesn’t have one person or corporation owning it. It is controlled by nodes, or separate computers, on different servers. These separate layers have an inter-operable open protocol which allows both companies and people to build products and services on top of it. 

 

Social media icons and blockchain

Social media icons and blockchain

How Does Blockchain Work?

Blockchain is a digital ledger.

Initially it was created for Bitcoin, but that has since been shown to be just the beginning. So much has been emerging out of blockchain technology, and its uses are only just being tapped into. But there’s no doubt that it’s going to revolutionize the internet, and not just the financial sector. It’s also looking to disrupt social media and marketing as we currently know it.

One Bitcoin is a single unit of digital currency, but since it isn’t a physical currency there needs to be a way to track how many coins each person has. That is where blockchain comes in. It keeps a record of each Bitcoin that everyone possesses. This ledger is not stored on any one computer, but on several computers across the world where each has a copy. Each of these computers is called a node. In this system, transactions are transparent. Everyone can see everyone else’s transactions. Security is obtained through mathematical functions and code. These codes are keys that each user possesses. There are two types of keys: a public and private key. They represent a user’s identity, and are only allowed to be used by the specific use

The keys are then verified by a massive network of computers that update the ledger to reflect any transactions. If someone were to send a certain amount of money to another person, the first user would have to use their private key to the other’s public key. This generates a block with a timestamp, digital signature and the relevant information. That block must be verified by a peer-to-peer network, meaning each of the computers must come to a consensus that the information fits the protocol of the chain. Once the consensus is made, the block is added to the chain and made part of the ledger.

How Does it Affect Content?

On today’s current social media sites, content is created and redistributed across the internet freely but without equal compensation. Networks rely on an ad-based business model.

With blockchain, companies would be able to track user engagement and gain an understanding of how users should be rewarded for their activity.

The idea is to spread wealth evenly across the network. The idea would use cryptocurrencies, much like Bitcoin, that could be used to buy and sell products or services through an app or site. Companies such as Kik are creating these currencies to bring developers and contributors to advertise directly to users in an in-app marketplace.

Most social media networks, including Facebook, Twitter and Instagram, exchange users information data so that they can better advertise to the public. Blockchain would completely change this. Because data is on separate, decentralized servers, no single party can have access to all the information. Content would not be used for advertising, instead the network is paid for by cryptocurrency which is paid to node hosts making certain that the wealth isn’t allocated on one central player.

Social Media Influencers

Social media influencers have a lot to gain from blockchain. Because of the transparency of the digital ledger, payments will be made automatically and anywhere in the world without hassle. Companies can easily pay and influencer through their digital wallet when their content is rendered. Furthermore, consumers will always know when content created by a influencer was specifically paid for. It will create more trust between brand and consumer as well as influencer.

New companies are arising that want to create a “sharing economy”. One such company, Patron, wants influencers and their fans to collaborate and create content. It would also allow businesses to contact influencers more easily and create contracts to hire them either through case by case basis or longer. The idea behind it is that anyone can become an influencer, overcoming language barriers and reaching more markets. This would be perfect for marketers so that they, too, can spread their brand globally and have more reach.

Blockchain will actually be better for social media influencers in the long-run. They will have more control over their content and how much it costs for marketers.

Marketers will also be able to have more control over their data. If transactions occur through blockchain, marketers will be able to see how consumers interact with their content. They will be able to see what works and what does not, and through what channels. With a company like Patron which will allow influencers to upload content to more than one social media site at a time, marketers could see the information all at once.

Portability of Social Media

Currently, most social media sites do not allow you to bring your address book with you. For instance, unless both you and your friend are on Instagram, someone without Instagram on Facebook can’t see your content. Not unless they enter the website itself. However, with blockchain, because everything is written into a public ledger, new applications within the network automatically transfer the data over without changing anything.

According to coindesk, all of our data is censored. It can’t cross certain boundaries.

As previously stated, the data created in one application can’t easily cross into another application unless there’s a partnership behind the scenes. In a blockchain so long as the user gives permission, it’s completely possible to transfer data between the networks. The idea is that data created by the user should remain the user’s data, and not solely for one company or institution. With blockchain we could see data becoming portable in many ways, not simply just through social media.

Marketing strategies will need to be completely redesigned in this new blockchain landscape. Transparency and trust will be a major defining factor. No longer will a company be able to make statements that can’t be verified. Once blockchain becomes a real and viable method across the internet, people will be able to verify claims from all sides through the public ledger. Influencers will have to be transparent about their paid posts and content. Businesses practices and values will be all verified down to the statistics. Of course, this also means that businesses can do the same with consumers. They can better target their audience due to their transactions being recorded on the ledger. They can figure out which advertisements work and what does not. While it’s true that Facebook and other social media sites will likely not be going anywhere any time soon, the reality is that blockchain is looking to completely disrupt the internet as we know it and create a completely new ecosystem.



A new technology has emerged in the financial-technology industry that is looking to reshape the way we use the internet. Blockchain is an incorruptible distributed database of economic transactions that can record nearly anything of value. Each block records current transactions that once completed are then linked on a linear, chronological chain. Blocks are encrypted, meaning they can’t be altered or edited, only copied. The blockchain is decentralized, meaning it doesn’t have one person or corporation owning it. It is controlled by nodes, or separate computers, on different servers. These separate layers have an inter-operable open protocol which allows both companies and people to build products and services on top of it. 

 

Social media icons and blockchain

How Does Blockchain Work?

Blockchain is a digital ledger.

Initially it was created for Bitcoin, but that has since been shown to be just the beginning. So much has been emerging out of blockchain technology, and its uses are only just being tapped into. But there’s no doubt that it’s going to revolutionize the internet, and not just the financial sector. It’s also looking to disrupt social media and marketing as we currently know it.

One Bitcoin is a single unit of digital currency, but since it isn’t a physical currency there needs to be a way to track how many coins each person has. That is where blockchain comes in. It keeps a record of each Bitcoin that everyone possesses. This ledger is not stored on any one computer, but on several computers across the world where each has a copy. Each of these computers is called a node. In this system, transactions are transparent. Everyone can see everyone else’s transactions. Security is obtained through mathematical functions and code. These codes are keys that each user possesses. There are two types of keys: a public and private key. They represent a user’s identity, and are only allowed to be used by the specific use

The keys are then verified by a massive network of computers that update the ledger to reflect any transactions. If someone were to send a certain amount of money to another person, the first user would have to use their private key to the other’s public key. This generates a block with a timestamp, digital signature and the relevant information. That block must be verified by a peer-to-peer network, meaning each of the computers must come to a consensus that the information fits the protocol of the chain. Once the consensus is made, the block is added to the chain and made part of the ledger.

How Does it Affect Content?

On today’s current social media sites, content is created and redistributed across the internet freely but without equal compensation. Networks rely on an ad-based business model.

With blockchain, companies would be able to track user engagement and gain an understanding of how users should be rewarded for their activity.

The idea is to spread wealth evenly across the network. The idea would use cryptocurrencies, much like Bitcoin, that could be used to buy and sell products or services through an app or site. Companies such as Kik are creating these currencies to bring developers and contributors to advertise directly to users in an in-app marketplace.

Most social media networks, including Facebook, Twitter and Instagram, exchange users information data so that they can better advertise to the public. Blockchain would completely change this. Because data is on separate, decentralized servers, no single party can have access to all the information. Content would not be used for advertising, instead the network is paid for by cryptocurrency which is paid to node hosts making certain that the wealth isn’t allocated on one central player.

Social Media Influencers

Social media influencers have a lot to gain from blockchain. Because of the transparency of the digital ledger, payments will be made automatically and anywhere in the world without hassle. Companies can easily pay and influencer through their digital wallet when their content is rendered. Furthermore, consumers will always know when content created by a influencer was specifically paid for. It will create more trust between brand and consumer as well as influencer.

New companies are arising that want to create a “sharing economy”. One such company, Patron, wants influencers and their fans to collaborate and create content. It would also allow businesses to contact influencers more easily and create contracts to hire them either through case by case basis or longer. The idea behind it is that anyone can become an influencer, overcoming language barriers and reaching more markets. This would be perfect for marketers so that they, too, can spread their brand globally and have more reach.

Blockchain will actually be better for social media influencers in the long-run. They will have more control over their content and how much it costs for marketers.

Marketers will also be able to have more control over their data. If transactions occur through blockchain, marketers will be able to see how consumers interact with their content. They will be able to see what works and what does not, and through what channels. With a company like Patron which will allow influencers to upload content to more than one social media site at a time, marketers could see the information all at once.

Portability of Social Media

Currently, most social media sites do not allow you to bring your address book with you. For instance, unless both you and your friend are on Instagram, someone without Instagram on Facebook can’t see your content. Not unless they enter the website itself. However, with blockchain, because everything is written into a public ledger, new applications within the network automatically transfer the data over without changing anything.

According to coindesk, all of our data is censored. It can’t cross certain boundaries.

As previously stated, the data created in one application can’t easily cross into another application unless there’s a partnership behind the scenes. In a blockchain so long as the user gives permission, it’s completely possible to transfer data between the networks. The idea is that data created by the user should remain the user’s data, and not solely for one company or institution. With blockchain we could see data becoming portable in many ways, not simply just through social media.

Marketing strategies will need to be completely redesigned in this new blockchain landscape. Transparency and trust will be a major defining factor. No longer will a company be able to make statements that can’t be verified. Once blockchain becomes a real and viable method across the internet, people will be able to verify claims from all sides through the public ledger. Influencers will have to be transparent about their paid posts and content. Businesses practices and values will be all verified down to the statistics. Of course, this also means that businesses can do the same with consumers. They can better target their audience due to their transactions being recorded on the ledger. They can figure out which advertisements work and what does not. While it’s true that Facebook and other social media sites will likely not be going anywhere any time soon, the reality is that blockchain is looking to completely disrupt the internet as we know it and create a completely new ecosystem.



Post a Comment