Blockchain and knowledge on consumer preferences
Blockchain technology has been widely used to ensure transparency in the recording of information. The system makes it difficult to change, hack or alter a piece of information once recorded (Ertemel, 2018). Essentially, its successfully created trust among the users since the strategy of using block in information storage is considered secure. Examples of the technology include Bitcoin and Ethereum.
Significantly, Blockchain technology has altered the market structures through peer-to-peer communication. Similarly, it has removed the intermediaries who are considered to filter data at a cost. Doing so has created immutable data records, which has helped to improve data quality and facilitate data access. The technology has transformed consumer relationships by enhancing data and information security and privacy (Ertemel, 2018). The knowledge also has allowed innovative forms, resulting in the creation of additional value for the consumers.
Most companies are using Blockchain strategy in building consumer trust. Through advertising and stronger relationships are developed, which are a reward in real-time. Unlike in the past, where companies could not incentivize beyond the messaging and marketing, Blockchain can now compensate the consumers directly after taking the desired decision. Similarly, the knowledge is applied in rewarding consumers participating in healthy activities through the issuance of tokens (Ertemel, 2018). Ideally, the distribution creates consumer trust, which eventually strengthens relationships.
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