Digital Advertising & Blockchain, BAT & More
This year has seen the price of cryptocurrencies fluctuate massively and yet blockchain is one of the most popular new and upcoming technologies. There are many people who believe that blockchain based platforms could completely change major industries.
But how could blockchain affect digital advertising?
Similar to machine learning, can it be used to upgrade the current systems? Or could it change the current state of affairs? Letâs look at this and see the different potential of the blockchain.
To start with, the basics of the blockchain. The blockchain is a distributed database which comprises a continuous ledger. What makes this new is the entries in the ledger are validated by a collective action instead of a central authority and that it is unchangeable and secured.
There isnât a need for a trusted third party either so these complicated systems can function with much more certainty and clarity.
With digital advertising, anything that would increase transparency would be very welcome. There is a 10% loss of the total revenue due to fraud (this is from a $200 billion industry). Information is shared through several platforms when it comes to programmatic advertising. Better tools are used to expose fraud and determine the performance of different ad campaigns, this would be like a blessing to investors and their agents.
One of the most persistent problems for the programmatic players is the issue of payment speeds, with independent SSPs and DSPs which havenât got as much leverage with agencies this is a huge problem. Agreements between supply and demand side platforms sum up to the slowing down of the flow of payment.
The AdChain platform by MetaX has taken a unique approach by applying blockchain to a major issue in the currency world, fraud. Fraud is one of the biggest issues in the industry and one of the easiest forms of fraud is creating a fake domain and then buy bot traffic which can generate ad sales in the future.
Currently, AdChain seems to have more advantages than disadvantages. Similar to FusionSeven, it focuses on one specific âpain pointâ in the current system and can use blockchain to come up with a solution. However, other token-based platforms have got more ambitious intentions to revamp the whole system of how advertising is done on the internet. This is the mission of the high-powered minds behind the Brave browser and the BAT (Basic Attention Token).
Whether BAT will be able to go through with this goal is unknown. Either way, BAT has the most ambitious application of blockchain technology in the advertising space.