The AdEx is a next generation Digital Advertisement protocol built on Ethereum blockchain. It aims to build a trusted Digital Ad Network without any ad fraud, privacy misuse and which is fully transparent in real time data reporting.
The AdEx protocol combines traditional Peer-to-Peer technology with cryptography and blockchain. There are not Intermediaries, It directly connects Publishers with Advertisers.
According to Statista, the worldwide digital Ad spending stands at $345.94 billion, rapidly increasing year on year. The AdEx protocol is here to disrupt this entire digital advertisement economy.
The AdEx protocol working
As previously mentioned it combines the traditional Peer-to-Peer technology with cryptography and blockchain.
The protocol improves the Internet browsing experience of a user significantly while at the time remaining completely invisible. There are 6 main components of the protocol. I am explaining all of them one by one below:
The Core has to implement everything related to moving funds between advertisers and publishers or you can just say, It provides the implementation of OUTPACE (Unidirectional payments Channel). It requires Ethereum blockchain to achieve consensus in a trust less and decentralized way.
AdEx network, which is built on AdEx protocol hosts this service. Market keeps the record of all valid campaigns and displays them to advertisers/publishers for them to find what they need based on their requirements.
This is one of the most important components, it involves all three parties: publishers, advertisers and end users. It runs in an <iframe> in the user’s browser and builds a profile of the user.
Using this profile, it shows the user only those Ads which suits his/her interest unlike in the present times where we see all kinds of Ads left right and center. It solves the long running issue of Ad blindness. Now, when the probability of a user ignoring Ad is significantly less, the incentive is for publishers and advertisers.
Better targeted Ads mean higher revenues for publishers and higher ROI for advertisers.
These are the agents of advertiser and publisher sides. One campaign is mapped to a single payment channel where the deposit amount is the entire campaigns budget. Campaign is regarded as valid only in the scenario where ⅔ validators have signed the reports traffic on publishers website.
It is the Graphical User Interface(GUI) of the AdEx network. It is the very same place where publishers and advertisers submit and accept campaigns and also monitor the campaign stats. Platform is also used to choose validators who validate their campaigns.
The ultimate goal of the Registry is to provide exposure for everyone who wants to be a public validator, and also to hold these validators accountable if they misbehave.
Unidirectional Payment Channels
These are the off chain payment channels built keeping scalability in mind. It is useful for AdEx as it allows them to process multiple payments between Publishers and Advertisers without using blockchain.
You must be wondering why not blockchain. We all know there are certain fees associated with each blockchain transaction, and processing every micropayment for each impression through it would not be feasible. Hence, blockchain is only used at the time of opening a campaign (For Advertisers) and withdrawing the earnings(For Publishers).
Who can use AdEx and does a user need crypto wallet to sign up for it?
Any Publisher or Advertiser can use AdEx’s platform for monetizing the website or advertising their products. There is no need to have a crypto wallet, you can sign up using just an email, this way an in-browser wallet will be created for you. Although, it is highly recommended to use a crypto wallet because it is more secure.
ADX token is an ERC-20 token to be used on AdEx network. It was originally used just to buy and sell the advertisement time or space on the AdEx platform. However, now the team has upgraded it to add Staking and bring DeFi features to it. Built-in flash loans feature is already available for use.
ADX has a market cap of $19.13 million at the time of writing and is currently ranked at #356 on CoinMarketCap.
Exchanges supporting ADX
Some of the biggest crypto exchanges has listed ADX for you to trade against USDT, BTC and ETH.
Here is the list of top 5 :
- Huobi Global
And that’s a wrap. For more information, visit AdEx help center.
If you enjoyed this post, I’d be very grateful if you’d help it spread by emailing it to a friend, or sharing it on Twitter or Facebook.
Follow BrushUpCrypto on twitter to support the Blog.