What is AdEx Coin?
AdEx Coin is an advertising platform based on a blockchain. The AdEx token sale started on Friday, June 30, 2017.
AdEx Coin's goal is to improve the online advertising industry by solving problems such as advertising fraud, overuse of ad blockers, and privacy concerns. The platform also promises to introduce a consent-based system where users can choose to receive sponsored messages.
AdEx Coin is completely transparent and builds on the Ethereum blockchain. It is based on Ethereum's smart contracts. The official website explains the purpose of the platform: “We believe we can offer advertisers and publishers a platform that is safe, transparent and beneficial to everyone involved in the process, including consumers.”
To bring their project to life, AdEx has partnered with major industries, such as Bitmain, Wings, Stremio and the Fintech Blockchain Group. The company is managed by co-founders Ivo Georgiev and Dimo Stoyanov.
AdEx Coin Features
AdEx Coin offers all of the following core features:
- Crystal clear, detailed reporting
- Availability for all browsers, including mobile and desktop browsers
- Emphasis on the privacy of users
- Regulation by end-users
- Focus on the entertainment industry, especially video streaming services and publishers
- Overall, the AdEx features are designed to replace the traditional advertising models used today.
How Does AdEx Coin Work?
The core feature of AdEx Coin is the AdEx user profile, which is a personalized page. It allows each end-user to understand and control the ads served to them. Benefiting from the user control, advertisers can get more information about customers who voluntarily provide details about their consumer behaviour, shopping habits and buying preferences.
The Ethereum blockchain and smart contract solutions are designed to provide transparent reports to users and advertisers. This provides a steady record of the performance of an advertising campaign. The best way to get more insights into how AdEx Coin works is to look at the issues the platform is trying to solve.
What Problems Does AdEx Coin Solve?
AdEx tries to solve some of the basic online advertising issues, including the following:
Lack of consumer consent:
Google, Facebook and other popular ad networks give users some control over what ads they see. However, this functionality is limited. AdEx, on the other hand, gives each user a “user profile” that they can use to remove ads they are not interested in. This means more precise targeting for advertisers, fewer errors and higher conversion rates.
Privacy concerns and data misuse:
Large ad networks and exchanges use vast amounts of centralized data, which can easily be traced back to the identity of consumers. Consumers have no idea how their data is used, which leads to privacy issues.
The blockchain technology used by AdEx simplifies the anonymization of large amounts of data so that user data can be used for statistical purposes. However, this is not tied to individual users. Advertisers can still view valuable data, but users' privacy is not affected.
Lack of bidder transparency:
Real-time bidding platforms offer surprisingly little information about advertising bids. Advertisers are notified of the highest bid on a given ad feature, but they cannot verify it transparently. Since AdEx Coin is based on a blockchain, advertisers can track every click or view and review every component of the campaign, including attendees, ad placements, impressions and clicks.
The information is decentralized, meaning that it cannot be manipulated through a centralized ad exchange.
Fraud is a big problem in the world of online advertising. Reports state the value of online advertising scams at over $15 billion a year. AdEx has anti-fraud mechanisms to detect and prevent fraud. The company does not talk about how its anti-fraud measures work, but describes them as “technical mechanisms”.
615 million devices worldwide use ad blockers. Users are tired of advertising, which is too intrusive and/or irrelevant. Therefore, they install ad blockers. AdEx solves this problem by giving users smart, meaningful ads that they really want to see.
Other Blockchain-Based Advertising Platforms
Obviously, AdEx is not the only blockchain technology that wants to change the online advertising industry. For example, we have Brave Software with its Basic Attention token (BAT), qChain, adChain and NASDAQ's NYIAX.
What is the Difference Between AdEx Coin and its Competitors?
The company addresses this concern in its white paper:
“While all these ad exchanges come from strong teams, we all sail in unknown waters, so it's very important to have an excellent understanding of both cryptography and ad-tech, and to maximize the availability of platforms and devices.”
AdEx differs in removing constraints. BAT is limited to the Brave Browser online. NYIAX targets the financial industry. By contrast, AdEx targets the entire online advertising industry and works on all browsers.
Ultimately AdEx, however, recognizes that they have competition:
“We are excited about the fact that we have a competition because it drives us to offer a service that is superior to others, the competition is healthy and will benefit the entire advertising ecosystem.”
AdEx Coin Conclusion
AdEx Coin is an advertising platform that aims to change the online advertising industry. With an Ethereum-based blockchain and smart contracts, AdEx aims to increase transparency in the advertising industry and provide advertisers and publishers with a P2P marketplace to serve as advertising space.