Blockchain is Helpful But Not Necessarily the Solution to Every Problem

By Prashant Jha

Blockchain Technology has been at the center of all the attraction in the last decade, all thanks to the introduction of Bitcoin. While the majority have been skeptical of the cryptocurrency, but nobody denies that Distributed ledger Technology has the potential to uplift many sectors plagued by the old-age traditional way of operating.

The DLT has the potential to catalyze many sectors like machine learning and artificial intelligence as well as in addressing frictions in the digital adtech ecosystem, according to a newly published report. The report was published by ‘Blockchain & Marketing: technology design considerations for implementation‘

The report says,

“DLT should be able to provide a cryptographically assured trust mechanism for distributed identity management, data permissions and distributed consent management.”

DLT can be a great aid to the ever-increasing complexities in the programmatic ecosystem, where data is the king, but managing that data has become increasingly troublesome.

However, another phenomenon with the rise of cryptocurrencies is that most of the users connected to the decentralized space see DLT as the magic bullet which can solve any problem.

But, that is not the case, take digital fraud, for example, if an ad impression is delivered on a fraudulent website by a trusted ad-server and the firm uses blockchain for its data management, then the fraudulent website would be registered on their database which cannot be tampered with.

This problem can only be solved when other third-party data feeds would point it out to the ad company that its ad impression was invalid. This is quite a common practice in the traditional world.

Not Every Business Solution Need Blockchain/ DLT

The report notes that not every business solution require the complexities of distributed ledger technology and a simple distributed database is more than enough to resolve the issue.

The publishers of the report GroupM suggest that the hype around the technology is quite high but its implementation in the near future is not in accordance with the hype. The technology is quite new and thus it is on the expensive side.

The report notes that the growth of DLT implementation would be quite like broadband-based video conferencing services. Broadband internet services were quite expensive at the beginning, thus the video conferencing services were equally expensive and quite inefficient. However, as the broadband technology refined, the internet services became much cheaper and thus the video conferencing has become a norm these days.

Similarly, in order to implement business solutions based on DLT, the technology needs to be more defined and the stakeholders must focus on streamlining the areas of concern to make the process faster.