The Definitive List Of (Current) Blockchain Possibilities In Retail Posted on : Jun 15 - 2018

Whether you believe in bitcoin or not, whether you think blockchain is a panacea or folly, you can’t deny that there is just an immense amount of activity going on in the space. It might not be all positive activity – like the almost-daily news of yet another theft from a crypto-vault. But for every negative, there seem to be at least three positives – some new ICO (though those seem to be getting curbed by financial markets), new patents, and an uptick in announcements of actual pilots or implementations. I originally wrote about four places blockchain could actually deliver value in the retail industry.

Since then, the list has expanded dramatically:

Digital Marketing Authentication

What it is: Proving that users are real and not bots, proving the identity of advertising channels so that brands don’t pay for ghost sites or for advertising on sites that go against what the brand stands for, and validating stories to prevent the spread of fake news. This article lays out the details behind all of these benefits and more, from a social media advertising perspective.

Example: IBM and Unilever tested [members only] blockchain for media buying

Pace of change: Very high. These are real problems for advertisers in a channel where they would like to invest more money but fear both ad fraud and also looking bad. IBM isn’t the only company trying to figure this out, and Unilever isn’t the only big advertiser who would like to see a solution here.

WOM/Influencer Marketing Contracts

What it is: Smart contracts that pay influencers for word of mouth or affiliate marketing. The smart contract cuts down the cost of making the contract (and theoretically makes sure all parties participating are “real” via some of the digital advertising challenges noted above), so that a wider market of smaller influencers and smaller business can participate.

Example: Gagapay

Pace of change: Low. It’s an interesting idea, and certainly there are already marketplaces for brands to find influencers with whom to partner. But the pain point here is low, especially compared to cleaning up digital advertising.

Loyalty Programs

What it is: Using blockchain as a way to reward consumers for their transactions – or potentially actions they might take. I’ve heard rumors of retailers who have created loyalty-based offers that consumers have figured out how to game, and also (mostly in the credit card or airline miles rewards programs) cases where a consumer’s points balance was stolen. Theoretically, blockchain would make that kind of fraud more difficult. Outside of that, it’s almost more about using cryptocurrency as a form of loyalty reward. View More