BLOCK CHAIN TECHNOLOGY IN MARKETING
What is a block chain?
Block chain is a distributed ledger. Anyone in the network can view the transaction but cannot alter without authorization from all parties. Hence, this is more secure and transparent. (Abeyratne, S. A., & Monfared, R. P. 2016).
Three divisions of block chain technology:
1. A shared state
2. Set of rules for updating state via blocks and
3. Trust model for time stamping Abeyratne, S. A., & Monfared, R. P. (2016).
Characteristics of block chain technology
1. Trust through transparency.
2. Traceability
3. Visibility
How block chain works;
1. Prepare the database
2. Give access the database to all parties.
3. Every party in the group can verify the transactions without any intermediary.
4. Communication occurs in peer to peer network.
5. Anyone in the system can view the value of transaction.
6. It uses 30 plus alphanumeric code.
7. There is provision for user anonymity.
8. Information sharing occurs through block chain addresses.
9. The data entered on block chain is permanent and cannot be revoked.
10. It uses computational logic.( Lansiti, M., & Lakhani, K. R. 2017).
Technological advantages of block chain technology.
1. Durability
2. Transparency
3. Immutability
4. Process integrity (Abeyratne, S. A., & Monfared, R. P. 2016).
Applications of block chain technology in marketing
1. Diamond industry uses the technology to trace the gems from mines to customers. It has reduced the cost of supply chain (Lansiti, M., & Lakhani, K. R. 2017).
2. Retailers are using block chain based gift cards to track the financial information within the block chain. chain (Lansiti, M., & Lakhani, K. R. 2017).
3. Companies who are using third party for establish and process data integration in future will use block chain technology to reduce the costs. (Korpela, K., Hallikas, J., & Dahlberg, T. 2017, January).
4.
Reference:
Abeyratne, S. A., & Monfared, R. P. (2016). Blockchain ready manufacturing supply chain using distributed ledger.
Korpela, K., Hallikas, J., & Dahlberg, T. (2017, January). Digital Supply Chain Transformation toward Blockchain Integration. In Proceedings of the 50th Hawaii International Conference on System Sciences.
Lansiti, M., & Lakhani, K. R. (2017). The truth about blockchain. Harvard Business Review, 95(1), 119-127.
Mainelli, M., & Smith, M. (2015). Sharing ledgers for sharing economies: an exploration of mutual distributed ledgers (aka blockchain technology). The Journal of Financial Perspectives, 3(3), 38-69.
