One of the major applications that blockchain technology has promised since its inception is secure digital transactions. This is the fundamental basis of virtually all cryptocurrencies and remains the absolute largest reason why people develop and implement blockchain into their organizations.
Because of this, digital platforms like Pinmo, which use online payments for their business structure are taking a huge interest in this extremely useful part of blockchain functionality. Yes, the traditional model for payments between different platforms and their users and clients is still largely based on fiat financial protocols but the promise of blockchain security with decentralized, open-source cryptocurrency payments holds a tremendous amount of appeal. The motives for this are numerous.
Before we get to those motives, we first need to give a basic breakdown of how the mechanism of a blockchain works:
Instead of a single centralized mechanism for managing payments and recording information that accurately decides specific payouts, blockchain technology offers a mechanism by which all transactions (these could be exchanges of any kind of information but here we’re focusing on payment-related information) are recorded in sequential form inside all the different nodes across a distributed ledger network. A single transaction or sequence of transactions makes up what is called a block and each block is identified with a cryptographic hash function (a sort of tamper-proof mathematical identifier).
That block is then validated into the existing sequence of blocks and their own hash identifiers as a sequential addition to those before it. It is then distributed through the entire particular blockchain network being used by a given platform. Because of this sequential cryptographic validation process and its distribution through an entire network. Each transaction in the chain can be verified by date, details and other factors without being in any way falsifiable. This is literally why this powerful technology is called the blockchain, because it’s a chain of cryptographically distinct blocks that immutably connect together.
Once you understand these basics, the fundamental usability of the blockchain for secure digital payment management becomes clearer. Let’s look at Pinmo as an example:
In the case of the Pinmo platform, the distributed ledger infrastructure of blockchain technology is used for two different but related things: First of all it’s applied to the creation and validation of Pinmo’s own cryptocurrency, the Pinmo token. This token is used to pay users of Pinmo for their social media sharing.
Secondly, these blockchain blocks are also used to cryptographically record all social media ad campaign activity performed by these Pinmo users so that their activity can be measured and the users accurately paid from advertiser campaign budgets. By the same stroke, advertisers who use Pinmo can analyze the blockchain used by the platform to verify that their ads are being shared by users, how they’re being shared and how they’re converting as well.
In other words, in the case of this particular platform, blockchain technology is used not only to deliver secure cryptocurrency payments to users and handle advertiser marketing budgets, it’s also one of the tools used to track all of the performance metrics that are relevant to payments.
The Pinmo token used for these digital payments and the ad activity verification described are both based off the same open-source blockchain architecture, which has been custom implemented for the platform’s ad campaign management, token distribution and social sharing needs.
Similar digital payments protocols exist in many other types of online applications and platforms due to the sheer security and flexibility of the blockchain. Because this technology is essentially tamper-proof for recording digital payment data, it also delivers a fantastically secure analytics tracking tool that feeds back into the payment tracking aspects of the same block creation protocol.