The Buzz Around Blockchain Technology (And What It Means For Publishers)

Happy 2018! With a new year comes new technologies, and unless you’ve been living under a rock for the past few months, you know the most buzzworthy technology in the advertising and publishing world is, without a doubt, blockchain.

Blockchain technology has been part of the technology conversation since Bitcoin hit the market, but only in the past year has it really started to gain traction outside of the cryptocurrency industry.

But what, exactly, is blockchain technology? How does it work? And what does that mean for publishers?

The rundown on blockchain

Blockchain is essentially a shared digital database. Transactions are recorded on a ledger that’s stored on a network of computers. As new transactions are recorded, the database is continually updated and reconciled across the peer-to-peer network of computers. Because the blockchain isn’t stored in one location, not only are the transactions public and easily verified, but it also protects the ledger; because there is no centralized database (and instead it’s stored across a network of computers), it can’t be corrupted by hackers or cryptocriminals. Blockchains also can’t be edited; because each block in the chain is back-linked and the blockchain uses key cryptography to verify transactions, the record of transactions is can’t be changed or altered.

To sum it all up, blockchain is a decentralized, highly secure record of transactions.

Blockchain was originally developed as part of the source code for Bitcoin, but as it’s developed, other industries have started to take notice of its capabilities outside of cryptocurrency. Thanks to the transparency of transaction and the security blockchain provides, industries from banking to security to - you guessed it - publishing and advertising have started exploring blockchain’s applications.

What blockchain means for publishers

So, now that you’ve got the rundown, let’s talk about what it means for the advertising and publishing industries.

In a nutshell, blockchain has the potential to be a huge win for publishers.

One of the biggest issues publishers have is transparency. Currently, there’s a major lack of transparency in the advertising industry, with fraud and human error running rampant. But shifting to blockchain technology can open up a whole new level of transparency in advertising and publishing, and that transparency can help to eliminate fraud.

Let’s take spoofing as an example. Currently, millions of dollars are lost to domain spoofing within the industry. But blockchain technology can completely eliminate this problem.

Currently, the way spoofing works is advertisers bid on impressions based on specific criteria, including domain. Obviously, the more reputable the domain, the more attractive it is to an advertiser. But domain spoofers create fake domains to replicate the more reputable domains. Advertisers bid on a completely fake domain, lose tons of money in the process, and the kicker is? A lot of times, they’re totally unaware.

But blockchain solves this problem by creating more transparency in these transactions. Because blockchain uses key cryptography verification, there’s no faking domains; any inaccurate data will immediately be recognized and rejected by the blockchain. Advertisers can rest assured that their ads are being shown on the site they actually bid on - and not a spoofed domain.

Not only will blockchain eliminate purposeful fraud, but it will also eliminate fraudulent activity based on human error (which runs rampant in the industry). It will force the media buying and publishing world to be more honest and forthcoming in its practices.

How to prepare for blockchain

It’s only a matter of time before blockchain technology becomes the standard in the advertising and publishing industry. And the best thing you can do to prepare is educate yourself. Blockchain is pretty technical in nature, and if you’re not a naturally tech-inclined person, it might take awhile to wrap your head around what blockchain is, how it works, and its application in your business.

It might be challenging to get a real understanding of blockchain, but for advertisers and publishers, it’s necessary. Blockchain is the future - and it’s coming, whether you’re ready or not. And people who educate themselves and really understand how to implement blockchain in their businesses are the ones who stand to flourish - while the ones who don’t will likely get lost in the transition.

Resources for blockchain learning

There’s a ton of information about blockchain technology out there - so much, in fact, it can be difficult to know where to start.

Here are a few great books that will get you started on the path to mastering blockchain (and its applications in the advertising and publishing industry):

“Blockchain Revolution: How The Technology Behind Bitcoin Is Changing Money, Business, And The World,” Dan and Alex Tapscott (Get it on amazon here)

“The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology,” William Mougayer (Get it on Amazon here)

“Blockchain Basics: A Non-Technical Introduction in 25 Steps,” Daniel Drescher (Get it on Amazon here)

“Blockchain For Dummies,” Tiana Laurence (Get it on Amazon here)

Blockchain technology is going to change the way we use the internet, the way we do business, and the way we advertise. So buckle up - this should be an exciting ride!