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Insights on LeadCoin

Mar 08, 2018 Posted /  15035 Views

Insights on LeadCoin

Businesses today find new potential customers through a combination of classic, offline methods and more unique, digital marketing strategies. One of the most common digital marketing practices today is the use of pay-per-click (PPC) ads on Google (Adwords and Adsense) and Facebook. This method allows businesses to drive traffic, or new visitors to their website to generate more business from new customers. These PPC ads represent the first step of a classic digital marketing funnel.

1. The Problem

Google and Facebook currently dominate PPC advertising. According to the Statistics Portal, Google generated over $79 billion in advertising revenue, and Facebook made over $26 billion in 2016. Leads are the fuel of every business; however, nearly every industry suffers from the same problem which is a lack of affordable and qualified leads. Leads are the visitors to the website who have the potential of becoming a paying customer. According to Hubspot, the average conversion rate for Google Adwords across all industries is 2.7%. These low conversion rates yield very low satisfaction, as only 22% of businesses are currently satisfied with their conversion rates. Lead lists offer an even lower conversion rate, as leads from such records are completely cold, having shown no interest.

2. Purpose of Lead Coin

LeadCoin attempts to bring Leads for the businesses by providing a decentralized network where the companies can buy and sell qualified leads. The Lead Coin platform can help companies to sell their unused leads to other businesses and get value in the form of Lead Coin tokens (LDC). Companies can also generate a higher conversion rate as they will buy leads directly from other businesses in their industry as opposed to buying visitors with no qualification at all. The businesses can sell high quality leads in real-time, meaning a seller will release a mismatched lead with an immediate need to the buyer. This process will be more efficient, as businesses will not have to deal with marketing campaigns or funnels, saving them time. All of this results in a shorter ROI for companies who are looking for more qualified leads.

3. The mission of Lead Coin

LeadCoin aims to target platform providers from a variety of different industries to diversify the network by bringing on as many new categories as possible. More operators should mean more categories and more categories involves a more extensive network. Businesses can buy qualified leads from others in their industry (even from their competitors) via the Blockchain and Smart Contracts which will provide trust and

transparency. The network’s architecture focuses on the process of onboarding leads into the LeadCoin ecosystem and structuring a transaction between a buyer and a seller. The on-chain system is cryptographically ensured not to approve selling the same lead to different people and ensures that all leads onboard to the Blockchain remain private to people not privy to the transaction.

4. LDC token

LDC will be a token, used to buy and to sell leads in Lead Coin. LDC will be based on Ethereum, which uses Smart Contracts to process transactions. LDC will be based on the robust Digital Advertising Market, and as this market will continue to grow in size so will the value of LDC. LDC will be used in the Lead Coin Platform for the following:

  • Buying and selling leads
  • Paying fees to arbitrators for solving disputes
  • Paying fees to Ethereum
  • Paying fees to platform operators
  • Paying for future services and functions produced by LeadCoin

5. Token Structure

The LeadCoin Token is implemented as an ERC20-compatible token over the public Ethereum Blockchain. Ethereum is the natural fit for LeadCoin as it is quickly becoming the industry-standard for issuing custom digital assets. Compatibility with the ERC20 standard leverages the rich existing infrastructure of the Ethereum ecosystem such as development tools, wallets, and exchanges.LDC will be implemented as a Smart Token which uses the Bancor Protocol to maintain liquidity.

6. Transaction Model

  • The transaction will begin by the buyer sending Lead Coin tokens to an escrow contract that holds the payment for a specific Lead.
  • The escrow contract queries the history contract for the lead address. If the escrow contract finds the lead address associated with the seller’s address, the agreement continues functioning with the later steps, but if not, the agreement rejects the transaction. Of course, if the lead address does not exist in the history contract, the escrow contract denies the transaction.
  • If there is indeed a match, the seller will re-encrypt the lead’s private data with the buyer’s public key. This is done by utilizing public-key cryptography and allows the buyer to know the private key without anyone else being able to.
  • The seller sends the new lead address to the escrow contract. The escrow contract then removes the old lead from the history contract and insert the new IPFS address with the Buyer’s address in the history contract to reflect the transaction.
  • The buyer is given a pre-specified amount of escrow time to test out the leads (generally seven days). In this time the escrow contract holds the funds and the buyer can send up disputes.
  • After the escrow time runs out, the escrow contract forwards the payment to the seller, and the buyer can no longer dispute the leads.

7. Creating Value for Unused Leads

Unused leads are currently discarded once businesses realize that they do not have a right match with that lead. LDC gives value to those leads, as they represent a qualified potential customer looking to spend their money on a product or service. The network will change the mindset of businesses who will now view unconverted leads as a valuable asset that can generate revenue.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: decentralized network LeadCoin Leads

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