August 20, 2020 09:00 AM Eastern Daylight Time
SAN FRANCISCO–(BUSINESS WIRE)–MadNetwork, a custom blockchain purpose-built for enterprise applications with early adoption in the advertising technology space, today announced additions and revisions to its product roadmap with renewed focus on the rapidly evolving digital media landscape. The network is releasing a new whitepaper and a revised token economic model, and announced plans to port over from Ethereum to a proprietary Proof of Stake (PoS) sidechain built by the company.
The digital media landscape is an ever-changing, data-intensive ecosystem valued well in the billions of dollars. However, digital media and the advertising technology that monetizes it is still in its infancy. With less than 60 years between the invention of the internet and today’s ad tech market, the digital world is rife with issues.
“There are clear and prevalent issues within the ad tech space that demand the attention of innovators” Tweet this
Launched in 2018, MadNetwork envisioned a series of products and partnerships geared toward reshaping the relationships between consumers and advertisers. The network quickly rolled out related developer tools through MadHive, its sister organization, and forged a partnership with AdLedger, a nonprofit consortium working to build open technical standards for the application of blockchain and cryptography to media and advertising.
However, after further exploring the complicated demands of ad tech, the Mad Team decided there was an immediate need to create a purpose-built blockchain designed to help large companies in ad tech as well as in other industries build secure distributed applications. Consequently, MadNetwork plans to release a highly scalable sidechain to Ethereum, designed to authenticate and manage the identity of organizations, people, or assets in the digital world.
In its initial implementation in the digital media industry, MadNetwork will address problems including but not limited to:
In a two-year study, PwC uncovered that half of all online ad spend goes to industry middlemen. There are usually anywhere between 10 and 20 of these intermediaries, all software companies that play a role in buying, selling, targeting, optimizing, or measuring an ad in exchange for a percentage of the transaction. These middlemen extract so much of the value that publishers are usually left with only 20-50% of the original ad dollar.
According to ISBA, half (50%) of the money advertisers invest in programmatic advertising never reaches online publishers, with 15% of the money unattributable to any players in the supply chain.
Today, fraud is rampant in the digital world. TrafficGuard, an ad fraud prevention tool, reported that businesses may be losing as much as $34 billion to ad fraud and predicted those losses will increase to $87 billion by 2022.
Fake news, data mining and viewership tracking have created dangerous echo chambers of unverified and inaccurate information fielded to the most vulnerable populations. According to Pew Research Center, a third of people prefer to read news online. However, according to a Boston University School of Communication study, 9 out of 10 people can’t tell sponsored content from real online news.
There is a well-known “rule of seven” that states a person needs to see or hear your marketing message at least seven times before they take action. But today, over advertising may be detrimental to your brand. In a recent study, the Advertising Association showed public favorability towards advertising has decreased 25% over the past few decades.
Excerpt from Whitepaper:
“Although the Ethereum system did work for the purposes of a pilot project, bringing thousands of new enterprise systems into the fold would eventually prevent any solution built on this technology from succeeding due to the scaling constraints of the underlying system. What we needed was a system that was built for the specific purpose of creating a better PKI. What we needed was a cryptographically verifiable map that could expire stale records automatically, was capable of sharding so that it could grow smoothly with system utilization, was inexpensive to write data into, and had mechanisms through which tokens could be abstracted for enterprise partners. What we needed was MAD Network.”
“There are clear and prevalent issues within the ad tech space that demand the attention of innovators,” said Adam Helfgott, Project Lead at MAD Network. “Other companies have yet to address the delicate issues surrounding ad tech and digital media in a meaningful way, and there is obvious potential for decentralized technology as a solution.”
For more information, please visit: https://madnetwork.com/
MadNetwork is a custom blockchain designed to authenticate and manage the identity of organizations, people, or assets in the digital world. With successful implementations in the advertising technology space, MadNetwok’s innovative technology can be leveraged by virtually every industry as the foundational infrastructure to automate transactions between trusted, authenticated counterparties. The project is backed by top tier investors such as Blockchange and Fenbushi Capital.
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