Decentralized Fraud IP Repository Using Blockchain
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Solution Overview
Problem
The increasing use of mobile applications for advertising has led to fraudulent techniques by publishers and advertising networks, resulting in advertisers losing marketing budgets due to fake clicks and installs generated by bots, which existing systems fail to effectively detect and prevent in real-time.
Innovation Solution
A decentralized repository of fraud IPs and publishers using blockchain technology, where a central repository with a blacklist and whitelist is created, with interactions analyzed in real-time to identify and block fraudulent behavior, utilizing smart contracts and unique root keys for authorization, and rewarding stakeholders for providing verified fraud data.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a centralized fraud detection system is used, then it can collect data from multiple sources, but it creates a single point of failure and allows centralized manipulation of fraud data
Solution Approach 1:
The patent divides the centralized fraud detection system into multiple decentralized nodes distributed across the blockchain network. Each node independently stores and verifies fraud data, eliminating the single point of failure while maintaining collective detection capability through the distributed ledger architecture.
Solution Approach 2:
The blockchain acts as an intermediary layer between different stakeholders (advertisers, publishers, fraud detection services). It provides a trusted, immutable record-keeping mechanism that enables collaboration without requiring direct trust between parties, thus improving reliability while keeping the system architecture manageable through standardized protocols.
2Reliability
If real-time fraud detection is implemented, then fraudulent activities can be blocked immediately, but it requires processing large volumes of data with high speed
Solution Approach 1:
The system pre-processes and stores fraud-relevant data (IP addresses, device identifiers, publisher information) in the blockchain ledger before fraud incidents occur. This preliminary structuring of data enables rapid querying and decision-making during real-time fraud detection without requiring complex on-the-fly analysis, thus maintaining both effectiveness and speed.
Solution Approach 2:
The patent replaces traditional mechanical data processing systems with blockchain-based cryptographic verification and smart contract automation. This substitution enables parallel processing of fraud detection queries across multiple nodes simultaneously, achieving high-speed real-time detection through distributed computation rather than sequential centralized processing.
3Quantity of substance
If more stakeholders are added to the blockchain network, then more fraud data can be collected, but it increases the complexity of authorization and data management
Solution Approach 1:
The blockchain network implements a universal authorization framework using standard cryptographic protocols (private keys, digital signatures) that works across all stakeholder types. This universal approach allows advertisers, publishers, fraud detection services, and regulators to interact with the same system using consistent mechanisms, enabling diverse data sources without proportionally increasing authorization complexity.
Solution Approach 2:
Each stakeholder manages their own authorization credentials and data contributions through self-service mechanisms. The blockchain automatically validates permissions and data integrity through cryptographic proofs, eliminating the need for centralized authorization management. This self-service model enables any number of stakeholders to join while keeping the authorization system simple and scalable.
Data Source
AI summary
The present disclosure provides a method and system for creating decentralized repository of fraud IP and publishers using block chain. The block chain network creates a central repository for decentralized shared ledger. The block chain network adds a ledger in decentralized shared ledger for each interaction on an application. In addition, the block chain network authorizes at least one of a plurality of stakeholders to access the decentralized shared ledger after receiving a request from at least one of the plurality of stakeholders. Further, the block chain network analyzes the interaction and past data received from a plurality of stake holders. Furthermore, the block chain network blocks device IPs, device Id's, device type and the publishers mentioned in blacklist of the decentralized shared ledger.