New cryptocurrency technology is poised to disrupt the social advertising industry in a rather unique way. FanLogic Interactive is a blockchain company dedicated to creating a platform for hosting brand contests, social fantasy games, and reward systems.
As many diligent marketing gurus know, gamification strategies can increase brand engagement metrics by up to 150%. These strategies include:
- Raffles for free prizes.
- Reward points that eventually culminate in a free product.
- Competitions for podium graded rewards.
- Fantasy games that for seasonal events.
This could mean entering for a chance to win this year’s hottest pickup truck, a punch card for a free scented candle, or a fantasy football league where the winner takes all. These contests have been around for nearly as long as businesses, so what would change if they moved to the blockchain?
For the uninitiated, blockchain is the underlying technology behind Bitcoin. Here’s minimal description of how it works, and what it does:
- A blockchain is a distributed ledger that records transactions.
- Nobody owns the ledger, but everyone (including you) can see these transactions.
- Miners, using their computers to solve complicated math problems, confirm transactions, providing consensus.
- When a transaction goes on the blockchain, it is there forever, and nothing can change it.
- This provides a trustless environment where people can transact freely, without a middleman.
This description is, of course, little more than the summary of the cliff notes. If you are interested in a more in-depth understanding of the blockchain, check out this article.
So, how can using a blockchain innovate gamification marketing?
One of the biggest issues with using gamification strategies has always been getting prospective customers to participate. Existing customers are already sold on your products, but reaching that untapped market of individuals who would participate in your contests, but don’t know you exist, could be a gold mine.
Using blockchain technology, FanLogic is creating a platform that uses a token (like Bitcoin) as a currency for brands to reward their customers. Since the blockchain is immutable, no third party needs to be involved. It is a user-driven social engagement platform for interaction between brands, their customers, and other customers. It combines the exposition and interactivity of social media marketing, and the high engagement metrics of gamification strategies, all on a secure and trustless network. Impressive.
When you look under the hood FanLogic also aims to tackle some of the environmental concerns Bitcoin poses.
Bitcoin consumes a comparable amount electricity to run the network as Bangladesh consumes as a nation. And while that may alarm you, there are other cryptocurrencies that have made great strides in reducing their environmental impact to almost nothing.
But why is Bitcoin’s network so energy intensive?
The answer comes back to technology. The algorithm used to mine is so complicated that it requires massive amounts of computational power. Since Bitcoin is like the ethereal ‘cloud’, but instead for decentralized digital transactions, mining machines need to work hard to maintain the network.
Why not use data centers for a gamification platform?
It’s true, 82% of companies do save money by using the cloud. The problem is if a data center goes down, the network follows. Some data centers have started integrating litium-ion batteries to prevent downtime, but this has problems too.
The proliferation of nickel use, a rare metal used to make batteries, threatens exponential decay of minable material. Nickel use is growing 4% each year, and alloys of nickel and stainless steel are growing 6% each year.
Data centers might not be as energy intensive as Bitcoin, but downtime could be much more costly. And because of the very nature of blockchain technology, downtime is impossible.
So, social gamification strategies on a more efficient blockchain; is it a good idea? If you like the idea of reaching more customers, having the added benefit of a social media like platform, paying less money, and having an infallible secure network, this might be the offbeat marketing tip for you. If the FanLogic startup succeeds, that is.