Bitcoin one of the crypto currencies is back in news again after trading at a record high of $4483 per coin during this month of August.
Many crypto currencies which including the Bitcoin are powered by a technology known as blockchain, and its potential use cases extends beyond just the financial world; it finds use in government, healthcare, real estate, security, and many other industries.
At events and in publications that cover the advertising industry, blockchain has been a hot topic as a candidate for bringing in more transparency into ad tech and solving long-standing problems such as ad fraud, ad blocking, and banner blindness, how much of it is hype and what are the facts? Read our latest post to find out.
A blockchain is a growing list of records, or blocks, linked together and secured by cryptography. Stripped to the basics, blockchain is a new way of storing information, with some distinct advantages over traditional information storage and database systems. Every user on the network retains a copy of the entire blockchain at any given point—think of it as a distributed open ledger. #Bitcoin
This gives the blockchain permanence, i.e., a user cannot go back and change a record without also changing the copies of blockchain record residing with every other user on the network, making the transaction records largely “tamper-proof”.
Network-wide encryption also makes blockchains secure by design. Moreover, if the information on a few nodes gets corrupted or lost, many other copies exist, lending the system high fault-tolerance.
Keeping these features in mind, the fragmentation, lack of transparency, and fraudulent operations in ad tech such as Methbot are exactly the kind of problems that the blockchain was built to solve.
The information economy is characterised by gatekeepers, intermediaries who act as middlemen between any system and its users. Think about banks, investment firms, audit agencies, exchanges… in the world of money, all of them are engaged in the business of record-keeping. Whenever middlemen enter any system, transparency goes out the window and the chances of fraud increase.
In advertising, the gatekeepers are ad networks, exchanges, and arbitrage agencies who repackage ad inventory and then sell it at a higher price. These players benefit from the opaqueness of the ad tech supply chain and have an incentive in keeping it that way. #Bitcoin