ShareRoot (ASX: SRO) has appointed DigitalX to help improve its existing range of service features and to integrate blockchain functionality into its proprietary user-generated content (UGC) platform.
ShareRoot intends to capitalise on DigitalX’s expertise and ability to develop a range of features that will add an “additional layer of legal protection” to ShareRoot’s UGC platform, thereby making their online activities more secure and more amenable for commercial opportunities.
DigitalX says it will also provide blockchain consulting services to ShareRoot’s Board, thereby setting the stage for further strategic changes at the tech company in the coming months.
The root of user-generated content
As a business, ShareRoot utilises user generate content to help franchisee-model businesses such as Costco and McDonald’s to better manage marketing campaigns and how their respective businesses are presented to their addressable markets.
Through its tech platform, ShareRoot collates suitable social media content, ensures compliance with legal and privacy regulations, assists with Customer Identity Management (CIM), and serves as a marketing campaign toolkit for businesses.
By collaborating with DigitalX, ShareRoot hopes to create an industry-leading marketing solution, empowered by blockchain functionality and driven by content generated by social media participants.
ShareRoot currently provides a cloud-based UGC solution allowing clients to search for relevant user-generated content across a range of social media services. The platform then requests and obtains full legal permission to use this content for commercial purposes including marketing campaigns.
By integrating blockchain functionality, the two companies hope to create a more robust version that is capable of handling larger datasets with more security, whilst offering better tracking, privacy and reconciliation tools that will ultimately “reduce legal risks,” according to ShareRoot’s CEO Noah Abelson-Gertler.
“DigitalX is Australia’s leading provider of Blockchain consulting services and products and we are excited to have engaged them to work on this project. Blockchain technology has the potential to significantly increase the security and safety of our proprietary UGC platform and we look forward to exploring ways to further reduce legal risks for our customers,” said Mr Abelson-Gertler.
The strong legal protections built into ShareRoot’s UGC platform allows clients to avoid the legal disputes and intellectual property issues that companies are encountering at a growing rate when sharing user-generated content as part of their marketing efforts, while also supporting the efforts of artists and original content creators.
According to DigitalX, social network advertising (otherwise known as UGC) is forecast to grow into a US$17 billion per year marketing sector with an 18% compound annual growth rate through to 2019.
“DigitalX is pleased to provide Blockchain consulting services and explore potential solutions that will best suit SRO’s business. Blockchain could allow for ShareRoot’s UGC platform to be further enhanced with more secure and effective methods of proving the ownership and legal rights of the content through ‘smart contracts’”, said Leigh Travers, CEO and Managing Director of DigitalX.
Upon announcement of the news this morning, DigitalX shares open around 5% higher at $0.25 per share in early morning trade, with ShareRoot shares holding steady at $0.006.