The benefits of decentralization for business operations have been overblown in some quarters. Decentralization itself has become such a buzzword that some people seem to want to decentralize everything on the planet, but that would impractical. Despite its clear benefits, there are some downsides to decentralization.
While I’m a proponent of decentralization, I believe it is imperative for businesses to properly analyze decentralization before leaping in. There are several reasons for this.
First, decentralization is expensive. Because of the high cost of implementation, it’s impractical to reorganize a small business with thin profits just to follow a new trend. On top of that, in a decentralized organization, you may find that various departments end up competing against each other rather than working toward the same goal. That could lead to inefficiencies, redundancies, and cannibalization of efforts. Such workflow challenges would undoubtedly affect the bottom line and eat away at profits. For these reasons, I would not encourage most businesses to reorganize themselves around the principles of decentralization unless it makes sense for the business.
That does not mean, however, that your business couldn’t benefit from decentralization. Many businesses that are not decentralized, and may never be decentralized, could benefit from using decentralized tools for business-related processes.
One of those business tools is decentralized social media.
Before plunging headlong into decentralization, first ask yourself what you hope to gain by using decentralized social media. Consider the benefits and the drawbacks for your own business and make a rational decision based on the direction your industry is going, the potential your business has within that industry, and your own customers and employees. What works for one business may not work for every business.
That said, decentralized social media can benefit non-crypto businesses just as well as businesses operating within the cryptocurrency space. It’s easy to see how Splinterlands is profitable when you understand that its business model is inherently decentralized. It’s also easy to see how centralized crypto-related businesses such as KuCoin can easily reach new customers and take advantage of social media marketing strategies by using cryptosocial media platforms the same way many non-crypto-related businesses use Facebook and Twitter to reach their audiences. These businesses are showing up where their customers are.
Another thing to consider is the nature of the platform or protocol that you’re considering. There is a huge difference between Hive and Coil. Whether you use one or the other, or both, depends on your business goals and what you hope to gain by using the tool.
At the end of the day, it’s about freedom and how you manage your business. Are your business’s customers or potential clients into crypto even if you’re not? Then it might not be a bad idea to position yourself where you’ll find those customers. If you’re a CPA and you’ve been getting more crypto-related tax questions from your clients, you might consider joining one or two cryptosocial media platforms and posting answers to those questions.
Decentralization also doesn’t mean that your business must utilize decentralized platforms and protocols. Many businesses today allow their employees to set up Twitter and other social media accounts and interact with customers and potential customers as representatives of the company. If you’ve already implemented that decentralized social media strategy for your company, it’s not too much of a stretch to allow your employees to set up accounts at Hive, Publish0x, and Minds and represent your brand on those platforms. But, again, that only makes sense if your customers are on those platforms.
One more question to ask yourself, should you decide to explore decentralized social media channels, is, to what extent should you participate? Do you dive all the way in, dabble a little here and there, or develop a strategy somewhere in between?
Decentralization is not an all-or-nothing proposition. You may find it beneficial to incorporate it into your social media marketing in certain instances or in very specific ways that make sense for your business. The important thing to consider is that it is an option. Just as businesses once had to consider whether to incorporate Facebook, Twitter, and/or Instagram into their marketing strategies, the day is coming soon when every business will have to decide if they want to incorporate cryptosocial media into their social media strategies. That time could be now for your business.
If it is, then you’ll have to decide which platforms and protocols you want to play with. Considering the diversity within the space, you’ll have to clearly define what benefits you want from your cryptosocial strategy. Decentralization allows businesses of all types the ability to choose from a broader range of social media marketing benefits. These include:
- Developing a long-term cryptocurrency strategy—earning and investing;
- Taking advantage of anonymous accounts, which can be used to ethically spy on the competition or survey the market;
- Nurturing faster payment channels;
- Establishing seamless cross-border payments for international transactions;
- Conducting microtransactions for your business in ways that are not possible with government-sponsored currencies;
- Protecting your content and branded assets with enhanced security protocols;
- Communicating with customers and potential customers without fear of censorship or backlash from the platforms on which you publish;
- Leveraging current and future relationships for greater financial, marketing, and computing power;
- And more.
This list of cryptosocial benefits for businesses is just the beginning. A business can take advantage of all of these benefits or just a few.
The bottom line is, if it makes sense for your business, cryptosocial media marketing can be an add-on to your current social media marketing strategy allowing you to reach new customers, engage with current customers in new ways, and profit financially from your social media strategy in ways that are not now possible. And, it would be irresponsible not to mention that there are many ways businesses could use decentralization that have not been thought of yet.
This post is not intended to be financial advice. Please seek a financial advisor before making decisions regarding investments. I am not a financial advisor.