How to Use Blockchain in Marketing Data Security

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How to Use Blockchain in Marketing Data Security

The boom of Bitcoin has made blockchain technology a trending topic.

However, it wasn’t always viewed in the most favorable light. When cryptocurrencies emerged, it was primarily used for seedy transactions on the dark web.

Luckily, sentiment and use have changed. More people see the value of investing in Bitcoin, and companies are warming up to the idea of using its technology in business. 

This technology can do more than buy and sell cryptocurrencies. It has the potential to impact how we work, even if you’re not planning to accept cryptocurrency as a payment method.

Here’s what you need to know about its effect on the digital marketing industry.

What Is Blockchain Technology?

Let’s start with the basics.

Blockchain technology is a new way to secure your data.

The “blocks” are pieces of digital information or records, and the “chains” are public databases housing the information.

You can use blocks to store information like:

  • financial transactions
  • contracts
  • medical data
  • supply information
  • confidential customer data

Here’s how a block of information is created and then stored in a chain:

  1. A transaction takes place, e.g., someone buys $100 of Bitcoin.
  2. The transaction is verified and stored as a block.
  3. The block gets a unique identification code called a “hash.”
  4. The blocks of information are bound and secured together by cryptographic principles called chains.

How Does Blockchain Work for Data Security?

Blockchain is a possible solution to giving customers peace of mind over their data.

Every couple of months, you hear news stories about companies experiencing customer data leaks.

Credit card information, passwords, physical addresses, and more are exposed on the dark web, making people vulnerable to cyber crimes like:

  • identify theft
  • phishing schemes
  • online harassment
  • cyberstalking 

After all, data is valuable.

Every time we search on Google, buy an item on Amazon, or double-tap on an Instagram post, this information is tracked because it’s valuable.

The high level of security offered by this technology allows companies to establish a secure data network to record and store consumer’s data.

However, you can’t delete this data. Once it’s recorded in the chain, it’s there forever.

While this means you won’t be able to pick what data is recorded, blockchain does have the potential to allow users to decide what data to share and with whom.

Why Should You Use Blockchain in Marketing Data Security?

Marketers can leverage blockchain by giving customers transparency and data protection while combating fraud and building brand recognition. These are attributes people may be searching for so they can feel safe doing business with a company.

Here are some of the benefits of using this technology in marketing data security.

Blockchain Offers Greater Transparency and Accountability

The biggest benefit is its transparency. The transaction ledger is open to public viewing, which adds a layer of accountability. 

It ensures businesses have to act responsibly and with integrity when using consumers’ data.

No matter your company size, it’s not always easy to gain trust. People are naturally skeptical about the information online, especially in the era of deepfakes.

As a result, transparency has a major impact on consumers’ purchasing decisions.

Blockchain Improves Security, Encryption, and Validation

Each time blockchain creates a new transaction, it’s encrypted and linked to the previous transaction.

Once it’s formed, it’s impossible to alter.

Blockchain’s immutable and incorruptible nature makes it incredibly safe to use, protects information from becoming falsified, and lowers the risk of hacks.

Marketers can also use smart contracts for added trust, transparency, and security. This automates workflow by triggering the following action when conditions are met.

How Could Blockchain Change the Marketing Industry for Data Security?

This new technology may be on track to disrupt digital marketing, including how we collect data and interact with customers.

Here are some ways the technology could change everything from keyword tracking to creating more data-driven campaigns.

Improved Keyword Tracking

Over the last couple of years, tracking keywords has become easier.

With tools like Ubersuggest, it’s easy to see how you’re performing in search. What if you could combine that with this new technology?

Marketers could use the technology to track keyword positions across all devices in any location. With blockchain, you have real numbers to use for more data-driven and accurate campaigns.

Decentralized Social Media

Data breaches and Facebook’s involvement in the 2016 US elections are causing social media users to become more aware of how their data can be used against them.

As a response, there’s a growing market for decentralized social media networks. These sites allow users to share, connect, and discover content without surveillance. 

What does this mean for marketers?

If sites using this technology grow in popularity, it will force us to stop relying on easy data collection and look at new ways to generate leads. 

Generate Better Leads

Like most marketers, you probably pull information from various sources and run your campaign based on what you’ve found.

The only problem? The data is not always accurate.

With blockchain, marketers can go straight to the consumer for data collection. You could incentivize people to give you access to their information.

For example, if you want someone to subscribe to your newsletter, you could pay the reader a small amount each time they read an email.

While this would likely have a higher upfront cost, a customer is a much stronger lead if they’re prepared to hand over their data. Using this type of method could tighten your sales funnel and give you more qualified leads ready for nurturing.

Eliminating Click Fraud in Online Ads

One of the biggest problems in the digital marketing space is click fraud.

This is when a human or a computer program clicks on ads pretending to be a legitimate user. Site owners often use this tactic to boost their ad revenue.

Using blockchain, you can make sure ad impressions and clicks are authentic.

adChain is a company working to combat this problem. The adChain Registry uses a smart contract on blockchain to authentic engagement. 

Their results show it can help increase transparency and reduce online digital advertising fraud.

Transparency for Customers

When using blockchain technology, your customers know who has access to their data and how they got it.

It can stop nefarious companies from selling cold lead marketing data and help customers control the spam filling their inboxes.

For marketers, less time could be wasted on leads who don’t care about your business. You’ll have a pool of real people with the problem your product or service solves.

Examples of Blockchain Companies

Here are how some companies are already using this new(ish) technology.

Spring Labs 

Spring Labs uses blockchain to verify identities and reduce fraud in the financial sector. It helps institutions securely control and mutually benefit from sharing information without leaking sensitive data.


Coinbase is one of the largest companies in the world using blockchain technology. The digital portfolio allows users to buy and sell cryptocurrencies like Bitcoin and Litecoin. According to a report from Axios, when Coinbase sold shares on the public market, it was evaluated at $100 billion.

blockchain cryptocurrency company coinbase sign-up form

Mythical Games 

Mythical Games creates blockchain-based games where players can make money by selling digital ownership of items. Using the technology, Mythical Games can verify the scarcity of an item and create a record of ownership. 

mythical games about us page regarding blockchain games is an app using blockchain and machine learning technology. It works by combining all your medical data from pharmacies, doctor visits, hospitals, etc., into one secure location. It gives patients the ability to manage their medical data and offers predictive insights about risks of future illnesses or diseases.

Blockchain in Marketing FAQ

What Is Blockchain Technology?

It is a new technology that secures data for financial transactions, medical data, and even marketing.

How Does Blockchain Increase Data Security?

Blockchain data uses cryptography to protect data, making it more secure.

Why Should You Consider Blockchain for Marketing Data Security?

It gives your audience more control over their data, increases transparency, and is more secure.

How Could Blockchain Change the Marketing Industry?

Blockchain has the potential to increase data security, improve keyword tracking, decentralize social media, improve lead quality, and eliminate click fraud.


Blockchain is far more than just technology for processing cryptocurrency payments. 

Digital marketers can tap into its power to give consumers more control over their information, add an extra layer of security to build trust, and tap into valuable, distilled data without all the fluff.

How do you think blockchain will change the world of digital marketing?

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