Ad Locker NFT System for Real-Time Digital Ad Exchange
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing digital advertising methods face inefficiencies in real-time pricing and ad swapping due to coding changes, contract reviews, and payment processing, which hinder the ability to monetize advertising space value dynamically, especially in situations like viral events or unexpected increases in promotional space value.
Innovation Solution
The Ad Locker system utilizes Non-Fungible Tokens (NFTs) and Smart Contracts on a blockchain to enable transparent, real-time exchange of digital advertising space ownership, allowing for immediate changes in ad content and pricing without direct involvement from the original creator, using Ad Locker IDs and Image Servers to manage and display advertising assets.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional ad serving systems are used to manage digital advertising, then ad delivery and targeting can be achieved, but real-time pricing and ad swapping are hindered by coding changes, contract reviews, and payment processing inefficiencies
Solution Approach 1:
The patent replaces traditional mechanical advertising systems (manual contract reviews, centralized payment processing, coded ad serving infrastructure) with a blockchain-based digital system. Smart contracts automatically execute ad exchanges and payments without human intervention, while NFTs represent ad space ownership and enable instant transferability. This substitution eliminates the need for complex coding changes and manual contract processing, enabling real-time ad pricing and swapping.
Solution Approach 2:
The patent introduces blockchain technology as an intermediary layer between advertisers and ad space owners. The blockchain network mediates all transactions, verifying ad space ownership through NFTs, executing pricing agreements through smart contracts, and facilitating payments without requiring direct trust or complex coordination between parties. This intermediary system resolves the inefficiencies of traditional centralized ad serving.
2Adaptability or versatility
If centralized ad servers manage advertising delivery, then ad performance tracking and targeting are possible, but the system lacks adaptability for dynamic pricing during viral events or unexpected value changes
Solution Approach 1:
The patent makes the advertising system dynamic by representing ad space as transferable NFTs with programmable smart contracts. Ad space owners can set dynamic pricing parameters in the smart contracts that automatically adjust based on real-time conditions such as viral events or traffic patterns. The NFT-based ownership model allows instant transfer and reconfiguration of ad spaces without requiring complex coding changes to the underlying system infrastructure.
Solution Approach 2:
The patent enables dynamic pricing by allowing smart contract parameters (such as base price, multipliers, time windows) to be configured and adjusted without system reconfiguration. When market conditions change (e.g., viral events), the smart contract parameters automatically adjust pricing based on predefined rules, eliminating the need for manual coding changes while maintaining adaptability to real-time value fluctuations.
3Speed
If manual contract review processes are used for ad space transactions, then legal compliance can be ensured, but transaction speed and real-time exchange capability are reduced
Solution Approach 1:
The patent applies preliminary action by encoding all contract terms, compliance rules, and legal requirements directly into smart contracts before deployment. These pre-programmed contracts automatically enforce compliance conditions without requiring manual review during execution. The NFTs representing ad spaces are also pre-configured with ownership and authorization data, enabling instant verification and transfer without delayed manual processes.
Solution Approach 2:
The patent implements automated feedback loops where smart contracts continuously monitor transaction conditions, verify compliance with predefined rules, and automatically enforce terms or reject non-compliant transactions. This real-time feedback mechanism replaces manual contract review while maintaining or enhancing compliance assurance, as the system automatically detects and prevents violations before they occur.
Data Source
AI summary
A computer program product, system, and computer-implemented method for facilitating rights management of NFTs associated with a digital advertising space on a website. The NFT is defined, in some embodiments, by a tree data structure comprising site specification information including the boundaries of a web advertising area on the website to which the NFT entitles a borrower to serve content on the website, from a CDN in some embodiments. The NFT may be embodied as a distributed ledger or blockchain. A host system creates the NFT and prompts a user to define the web advertising area using a visual editor in some embodiments.