Breaking down the blockchain

The key hits:

• Publishers should seek out vendors that have been around the block(chain) for a while
• Knowing which blockchain a vendor uses can help to establish legitimacy, and delving deeper can uncover hidden costs
• Publishers also need to be prepared to evaluate blockchain and crypto companies as advertisers.

Though in its infancy, the allure of the blockchain is beckoning many media companies to experiment with everything it has to offer, from selling non-fungible tokens (NFTs) to accepting cryptocurrencies as payment. But just as the dotcom boom, this new technology is plagued with snake-oil salespeople and companies ready and willing to take advantage of newcomers to the crypto space by selling their vaporware to whoever will bite.

So for the media companies that are ready to get active on the blockchain, knowing what questions to ask prospective vendors and having the right team members participate in those conversations will be the biggest advantages as they assess partners. 

Digiday asked several publishers how they vet vendors and what questions they ask potential partners who promise them they can help navigate the murky waters of the blockchain. Below is a collection of questions and advice you can take into your next blockchain business meeting.

You may be new to the scene, but your partners should be old pros

Turner Sports’ svp of digital league business operations, growth and innovation Yang Adija has been thinking about the ways in which the blockchain can apply to his company since 2017, but he only has a dozen full- and part-time employees to implement some of these innovations. So partnerships with third-party companies and developers have been crucial, he said.

His first question?

“I’m wary of people who just opened up shop and are over-marketing. You know, they haven’t done anything but they are selling the dream before they’re doing the work. I’m much more interested in the work,” said Adija, adding that a lot of these companies have only been around for less than a year.

Other questions Adija asks potential partners:

• What have you already built?
• What are you currently building and working on?
• Where within existing pain points in the blockchain space are you developing, either for yourself or someone else, that’s actually adding value to the space?
• Do you have other clients? How long have you worked with them?
• If they are building tools, dive into the tech around their tools to see if it stands up to what they’re advertising.
• How do they think about data and data protection in their business? You have to make sure they are compliant with the data privacy laws and practices that your company follows.
• Have your legal team, assuming they are familiar with the crypto space, run through a number of CYA (cover-your-ass) …read more

  Source:: Digiday

        

  

  Author: Aaron