Distributed Transaction Ledger for Transparent Ad Marketplace Matching
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Solution Overview
Problem
The existing digital advertising ecosystem faces inefficiencies and complexities due to centralized requirements for connecting DSPs with SSPs, leading to increased costs, time consumption, and potential self-competition among advertisers, with re-brokering situations not being tracked or accounted for, and challenges in managing demand and supply for impressions in an open distributed fashion.
Innovation Solution
A self-regulating transaction system utilizing a distributed ledger network with synchronized transaction ledgers across nodes, enabling crypto-verified transactions and reducing the risk of errors or fraud, allowing for efficient and transparent market operations among actors.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If centralized transaction systems are used with manual negotiations between DSPs and SSPs, then transaction control and coordination are maintained, but administrative burden, complexity, and time consumption increase significantly
Solution Approach 1:
The system enables autonomous transaction execution through smart contracts that automatically match supply and demand, verify conditions, and complete transactions without manual intervention. DSPs and SSPs interact directly through the automated marketplace, eliminating the need for manual negotiations and administrative coordination while reducing system complexity.
Solution Approach 2:
Manual mechanical negotiation processes are replaced with automated computational systems. The smart contract infrastructure uses cryptographic verification and algorithmic matching to substitute human-mediated transactions, dramatically reducing administrative burden and execution time while maintaining transaction integrity.
2Productivity
If centralized intermediaries are used to facilitate transactions, then transaction coordination is simplified, but costs increase and transparency is reduced
Solution Approach 1:
The centralized intermediary is extracted and replaced with a decentralized smart contract infrastructure. This removes the information asymmetry and opacity associated with centralized control, allowing all participants to verify transaction details, pricing, and matching criteria on the blockchain, thereby enhancing market value transparency while maintaining efficient automated coordination.
Solution Approach 2:
A new type of intermediary based on cryptographic smart contracts is introduced instead of traditional centralized platforms. This intermediary operates transparently with all transaction data visible on the blockchain, enabling verification of market values and pricing while maintaining automated coordination efficiency without the cost and opacity of centralized control.
3Adaptability or versatility
If manual contract negotiations are conducted for each promotional campaign, then transaction terms can be customized, but time consumption and administrative efforts multiply with the number of partners
Solution Approach 1:
Transaction terms and conditions are pre-programmed into smart contracts during deployment. This preliminary action allows customized transaction parameters to be established once, then automatically applied to all subsequent transactions between compatible parties, eliminating the need for repeated manual negotiations while maintaining adaptability through programmable flexibility.
Solution Approach 2:
The smart contract infrastructure provides universal transaction templates that can be configured for different campaign types, partners, and conditions through programmable parameters. A single versatile platform handles diverse transaction requirements without requiring separate manual negotiation processes for each partner, dramatically reducing time consumption while preserving customization capabilities.
4Ease of manufacture
If rate-sheets with heavy discounting are used for inventory valuation, then advertisers can negotiate lower prices, but publishers may underprice their inventory and advertisers may overpay
Solution Approach 1:
The blockchain-based marketplace provides real-time feedback on actual transaction prices and market values through transparent ledger recording. This feedback mechanism allows all participants to observe actual pricing outcomes, preventing systematic underpricing or overpaying by making market values visible and verifiable, thereby improving measurement precision while maintaining pricing flexibility through competitive bidding.
Data Source
AI summary
A first processor-accessible memory device system and a second processor-accessible memory device system of a self-regulating transaction system may each store a respective local copy of one or more transaction ledgers that record transactions. A first data processing device system may be configured to generate a transaction information block associated with a particular market channel, store it in the local copy of a transaction ledger associated with the particular market channel stored in the first processor-accessible memory device system, and transmit it to a second data processing device system over a communications network for storage in the local copy of the transaction ledger associated with the particular market channel stored in the second processor-accessible memory device system.