The world market has become a dynamic place due to disruptions created by new technologies. AI, Big Data and IoT are some potentially disruptive technologies. However, the biggest impact that could have on MLM is blockchain.
Global multilevel marketing companies offer diverse line of products in different categories. These include, beauty, nutrition, tea, travel & tourism packages, fine arts etc. These companies incorporate their brands and reward points which can redeemed as cash or digital securities. However, with the advent of Blockchain technologies, companies are using cryptocurrency to incentivize people with their coins or tokens.
MLM with blockchain will allow for robust scalable platform that could support opportunities across the world. However, there are two ways the blockchain technology could be used. It can be used for MLM or Affiliate Marketing or using a cryptocurrency with blockchain niche.
In the digital marketing space, the biggest issues are related to tracking and fraud detection. We believe this is where the true potential of blockchain lies. In a largely automated MLM/Affiliate programs the communications are far from perfect. These are susceptible to manipulations, hacking or abuse due the centralized servers. In addition, if a server gets corrupted or shut down the data can be lost resulting in loss of money and information.
When blockchain is used, the information is decentralized i.e. information & data is stored on all computers in the network. In addition, smart contracts ensures that all tracking is completely accurate leaving no possibility for fraudulent activities.
In terms of cryptocurrency, things are not very clear. Firstly, the market is very volatile and values are not stable and changes month to month. Secondly, there are no established MLM/affiliate programs and thirdly, there is also a risk of financial disaster if the cryptocurrency turns out to be dud.
Blockchain is seeing many real-time applications especially in health,insurance, banking & other financial institutions with the addition of MLM/Affiliate marketing. In case of MLM marketing this technology can be applied without any hiccups, making it one of the industries to look up for in terms of recent developments with regards to blockchain.