Introduction to Blockchain technology, cryptocurrency, Smart contracts, ICOs for marketers. "Bold Talk" presentation at the 2017 Inbound conference in Boston, USA. The video of the speech is posted on the Inbound Marketing event page.

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B L O C K C H A I N T E C H :
I T W I L L C H A N G E
M A R K E T I N G A N D
A D V E R T I S I N G L I K E
T H E I N T E R N E T D I D
Mark Mueller-Eberstein

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Blockchain Tech:
It will change marketing and advertising
like the internet did
M A R K M U E L L E R - E B E R S T E I N
Slides available for download

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1992:
C AN W E D O M AR K E T I N G O N T H I S
“ I N T E R N E T T H I N G ” ?
T H E R E A R E O N L Y G E E K S A N D
T H E Y W O N ’ T L I K E T H E C O M M E R C E
I N T H E I R C O M M U N I T Y

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Who knows
somebody
who owns
Bitcoin?

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Bitcoin or
Blockchain
Technology?
Bitcoin is (currently the best know)
usage of blockchain technology
One of many digital currencies
using blockchain technology
Many more uses for blockchain
technology other than “currency”
or “wealth storage”

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Imagine an international transaction
could be done in a few minutes and for
less than 10% of current costs
Its happening. globally
Transaction can take days and cost a lot…
…….Really?

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Right now you need trusted
intermediaries
like Amazon, Alibaba, Facebook or
a bank
Not required with blockchain
technology

8. ©Mark Mueller-Eberstein & Adgetec Corporation
What does a blockchain
do….?

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Blockchain Technology Solves the
problem of transfer of value between
internet users without having to rely
on a third party.

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Everybody with a connection to the internet
can transact with everybody else.
Blockchain (or “B.C”): Social
scalability

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The entire point of Blockchain
technology based decentralized
transaction platforms like
peer-to-peer digital currencies
(e.g. Bitcoin)
is the elimination of middlemen and
the increase of direct trust between all
internet users

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1. Still using exclusively a land line?
2. Still using mostly Fax and postal services?
3. Still doing all your banking with a teller in a branch?
4. Still focusing on one-way TV commercials and print-adds?
1. What happened the last time we connected people directly….?

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T H I N K H O W A M A Z O N , N E T F L I X , U B E R
A N D A I R B N B C R E A T E D N E W B U S I N E S S
M O D E L S U N I M A G I N E D I N T H E E A R L Y
1 9 9 0 S .
Blockchain technology
will be to
​marketing, what “Web” was
to Communication

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Blockchain
Technology
allows old and
new players
to offer new
services to their
customers

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Do you know that you can pay
somebody in bitcoin by simply
knowing their Twitter or
Facebook accounts?

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“Customers will
chose Blockchain
Technology based
solutions and
business models
because they work
well for them ”

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Impact will be felt sooner than later in:
• Customer Experience
• Branding
• Advertising
• Commerce & Sales
• Loyalty
• Data
• Management & Leadership
The implications and potential of blockchains
on marketing are tremendous

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Which industries
will be impacted?

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Think beyond the banking
system…
Think any kind of transaction
and related services…
Mark Mueller-Eberstein & Adgetec Corporation

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1. Any supply chain
2. Records of estates
3. Records of shares
4. Voting
5. Domain control (DNS)
6. Central Trust (“Escrow”) for any kind of deals
7. Messaging (“signed and unchangeable”)
8. IP management
9. …. Any financial transaction
10. …
… for example….
Mark Mueller-Eberstein & Adgetec Corporation

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Blockchain technology allows
“Smart Contracts”
Today: Very simple automated
transactions.
(Think vending machine as “Smart
contract example”.
User select product, transfers value
(aka inserts cash)
Smart contracts and Ethereum

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Creating new
coins and
tokens…

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ICOs
C R O W D F U N D I N G O N S T E R O I D S

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1. Like crowdfunding, but raising Millions not Thousands
2. Like an IPO, but for everybody, anywhere (without any regulation or
safety net)
3. 200 ICOs in 2016; over 800+ in 2017 (so far)
1. Initial Coin offerings (ICOs)

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1. Tezos (crypto infrastructure; new blockchain) : raised USD 232 million in
Bitcoin-BTC and Ether-ETH
2. FileCoin (Data storage): raised $197.92 million in BTC, ETH, ZEC, USD
3. EOS (Decentralized Applications): raised $150+ million in ETH
4. Bancor (Crypto exchange): raised more than USD 150 million in Ether
5. Other prominent ICO’s include Status ($108 million), Basic Attention Token
($35 million), Mobile Go ($25 million)
1. Largest ICOs till date (14 August, 2017)

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Who is using the
B.C. stuff today?

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NEARLY ALL BANKS
AND LARGE
FINANCIAL
INSTITUTIONS ARE
HAVING SOME
IMPLEMENTATIONS IN
PRODUCTION

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How “real” is blockchain technology?
 Goldman-Sachs invest $500+ Million
 Nasdaq implements technology in private markets
 Microsoft declares “blockchain” as one of the key “must win” workloads
for their Azure platform and business
 R3 group (banks) use for bond trading (9/2016)
 Hottest topic at #FIF2017
 15% of top global banks intending to roll out full-scale, commercial
blockchain products in 2017 (IBM survey)
 Some governments invest into developing their own “local” blockchains
Mark Mueller-Eberstein & Adgetec Corporation

29. ©Mark Mueller-Eberstein & Adgetec Corporation
Global
organization
with lots of
different
business
units, secure
IoT and
logistics
needs

30. ©Mark Mueller-Eberstein & Adgetec Corporation
Even Disney
does
(their own,
open source)
Blockchain

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Marketing with
Blockchain tech?

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1. Half of Advertisement is wasted; but not sure which half
2. Attention is Free
3. Data is plenty, cheap and managed by few central
organizations
1. With Blockchain Technology, some Foundational believes are not true anymore:

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1. Dramatically different experience than the one we have today.
2. New payment and transaction models.
3. Customer has a cryptographic proof to her identity and credentials.
• E.g. Customer can prove eligibility to shop on your site as a US
citizen without telling you any personal information whatsoever.
4. No tracking imposed on the customer (decentralized apps).
Marketing with B.C. Tech tomorrow?

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1. Advertising: one of the first disciplines to be disrupted by blockchain technology.
Customers maintain their own identity and control over their information
Marketers will have to pay each individual to get their attention.
1. Good news: much greater trust in knowing that your advertising and outreach efforts
are going exactly where you intended them to go.
2. Bad news: “Pay for Attention” required (attention of others will come with a price tag)
Marketing

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Today: Advertisers pay Google or Facebook.
Tomorrow: Advertisers pay individual (through large enterprise grade tools)
Imagine:
• Marketplace where each person will set a price for their guaranteed attention.
• Advertisers will choose to pay an individual’s price or not.
• If Advertiser pays, they will get a response that is verifiable from that individual.
Pay for Attention in a blockchain-
world?

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1. Tracking customer behavior across websites?  will become a
greater challenge
2. Move to Blockchain-based social networks that preserve
anonymity like Mastodon or Steemit (decentralized versions of
Twitter and Reddit)?
3. Disintermediation of Twitter and Facebook (unless they
decentralize themselves first)
From centralized to de-centralized
social media?

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1. When data moves out of proprietary systems onto open
blockchains:
• Data itself is no longer a competitive advantage
• Interpreting the data becomes the advantage
Blockchain and Data

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CHAINING
CUSTOMER WITH
BLOCKCHAIN
TECHNOLOGY?

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A C R E D I T C A R T R A N S A C T I O N
C O S T $ 0 . 5 0
A B L O C K C H A I N T R A N S A C T I O N
C O S T N E A R L Y N O T H I N G

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Micro Transactions for new loyalty
and incentive models
Anything that has to do with rewards, loyalty programs and Micro
payments will likely be touched and influenced by blockchain technology.
Incentive models not economically viable today, will likely change these
games fundamentally

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▪ Problem: Most customers abandon loyalty rewards programs due to frustrations with
the time required to obtain meaningful rewards
▪ Solution: Digital token programmability removes friction from the settlement of loyalty
points across multiple programs and companies.
▪ Loyalty program interoperability
▪ Loyalty point transferability and management
▪ Ownership of perks can be easily tracked, transferred, and fine-sliced into bits for
micro-redemptions; potentially creating new markets for consumers of a brand
or lifestyle
▪ Opportunity: New areas for innovation, particularly at the regional and local level.
Loyalty Programs

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1. 1. Marketers/agencies Win:
1. engage users and verify the message reach a (targeted) real human
2. 2. Publishers Win:
1. a fair exchange of value as rapidly as possible
2. Funding to generate more and/or better site content for their user base
3. 3. Users Win:
4. Access to content as inexpensively as possible
5. Without wasting attention on intrusive or irrelevant messaging
6. Without feeling they’re being spied on
1. With Blockchain Tech – All can be Winners

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Blockchain Tech is
here.
Today.
And growing strongly

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1. 25 years ago: Experts seriously debated if people can make money on the Internet
and if the users will accept marketing on this new medium.
2. New payment models do transform shopping behavior:
1.Credit Cards in the 1980s
2.WeChat pay (used by over 700 million people) over the last 5 years.
3. Marketing and advertisement need to keep up to support and leverage those
opportunities.
4. Visionaries and startups: building business models enabled by B.C.
Remember:

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1. Everybody can transact with Everybody and add billions of people to marketplace
2. Transactions:
1. Any size
2. Cheap: fees could become “near zero”
3. Fast: “immutable” within seconds
 new business, marketing, advertisement and collaboration models are possible
3. Impacts every “transaction step”
from Compliance and Supply Chain Management to Advertisement, Marketing and Sales
Impact of blockchain on consumers, business
models, marketing and advertising:

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Rethink Marketing and Advertisement to
include deeper customer engagement:
Rewards from customers for valuable
content
Loyalty and award programs
Creation of market places

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Make a
Blockchain Tech
Plan

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 M A R K M E @ A D G E T E C . C O M
 T W I T T E R :
M A R K M E B E R S T E I N
 U S + 1 8 5 5 . 4 2 3 . 4 3 8 3
THANK YOU!
Mark Mueller-Eberstein
CEO of Adgetec Corporation
Bestselling Author
WeChat: MarkMEberstein
Mark Mueller-Eberstein & Adgetec Corporation