Blockchain, best known at this point in the context of financial markets, is the technology underpinning Bitcoin, with many innovative uses. Blockchain is an immutable, distributed ledger or record of transactions between a network of participants. The entries in the ledger are governed by pre-defined rules and validated
by the network. The network can be public like bitcoin or private with only select participants.
- Given the complex nature of the digital advertising supply chain, blockchain technology can offer greater efficiency, reliable and high-quality data.
- Blockchains can create a more efficient medium by which two or more completely anonymous or semi-anonymous parties can complete various types of transactions potentially at a low cost.
- Since blockchains are decentralized peer-to-peer networks, there is no single point of failure and no single access point for malicious hackers. Thus, it enhances safety and security for data.
- This ability to keep a fully verifiable and immutable ledger or database that is available to all members of the blockchain provides a layer of trust and transparency that isn’t always available within media and advertising processes.
- While blockchain will not cure all of ad tech’s problems, it can be beneficial in situations where there is censorship and both sides of the supply chain (i.e. publisher and advertiser) are disadvantaged by not having access to that information,
- From tracking and transferring money or inventory to post-financial settlements and smart insurance contracts, the potential for blockchain to transform business spans industries and applications.
- Blockchain is a generational technological transformation akin to the importance of the advent of the Internet for how businesses transact with one another.
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