Self-Regulating Transaction Ledgers for Decentralized Ad Markets

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Solution Overview

Problem

The existing digital advertising ecosystem faces inefficiencies and complexities due to centralized requirements, manual contract negotiations, and challenges in understanding market value, leading to increased costs and potential self-competition among advertisers, with a need for a more efficient and decentralized transaction system.

Innovation Solution

A self-regulating transaction system utilizing a distributed ledger network where each node maintains a local copy of transaction ledgers, enabling crypto-verified transactions and reducing the risk of errors or fraud through synchronized ledgers, allowing for efficient and transparent market operations.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If a centralized transaction system is used for digital advertising, then transaction coordination is simplified, but administrative burden and costs increase

Engineering Contradiction:

Improvetransaction coordinationVSAvoidadministrative burden

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The distributed ledger system enables participants to autonomously verify transactions and maintain transaction records without centralized coordination. Each node independently validates transactions through cryptographic verification and consensus mechanisms, eliminating the need for central administrators to manage contracts and transaction records.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The centralized transaction coordination function is segmented and distributed across multiple independent nodes in the network. Each node maintains its own copy of the transaction ledger and independently processes transactions, replacing the single-point centralized coordination with distributed autonomous operation.

Inventive Principle:

Principle #1Segmentation

2Adaptability or versatility

If manual contract negotiations are used between advertisers and publishers, then transaction flexibility is maintained, but time consumption and operational efficiency decrease

Engineering Contradiction:

Improvetransaction flexibilityVSAvoidoperational efficiency

Core Design Contradiction:

Adaptability or versatilityVSProductivity

Solution Approach 1:

Transaction parameters such as pricing, targeting criteria, and contract terms are pre-configured in smart contracts deployed on the distributed ledger. This allows automated execution of transactions without manual negotiation at the time of ad placement, significantly improving operational efficiency while maintaining flexibility through programmable contract terms.

Inventive Principle:

Principle #10Preliminary action

3Device complexity

If centralized transaction ledgers are used, then data management is simplified, but security and fraud risk increase

Engineering Contradiction:

Improvedata managementVSAvoidsecurity and fraud resistance

Core Design Contradiction:

Device complexityVSReliability

Solution Approach 1:

The centralized transaction ledger is segmented and replicated across multiple distributed nodes. Each node maintains an independent copy of the ledger, eliminating the single-point vulnerability of centralized storage. The segmentation of ledger data across the network enhances both security and reliability.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The distributed ledger system incorporates continuous feedback mechanisms where each node independently verifies transactions and validates the consistency of ledger copies across the network. This distributed verification process provides real-time fraud detection and prevents unauthorized modifications, enhancing security while maintaining data management through automated consensus protocols.

Inventive Principle:

Principle #23Feedback

4Adaptability or versatility

If traditional advertising marketplaces are used, then market coverage is maintained, but transparency and fair valuation are reduced

Engineering Contradiction:

Improvemarket coverageVSAvoidmarket value transparency

Core Design Contradiction:

Adaptability or versatilityVSLoss of information

Solution Approach 1:

The distributed ledger platform provides a universal transaction framework that can accommodate multiple advertisers, publishers, and market channels simultaneously. The system maintains broad market coverage while enhancing transparency through immutable recording of all transactions and market data on the shared ledger, enabling fair valuation through visible market information.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentEP3394818B1Self regulating transaction system and methods therefor

Publication Date: 2025.08.20 KOCHAVA INC

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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.