How Does Blockchain Amplifies AdTech Industry

What’s the deal?

According to the hype, blockchain is nothing short of being lord and savior of every industry imaginable (and a couple of theoretical too). If you go through the think-pieces and overviews, blockchain is seemingly applied to everything. And yet there is not much specific about it — more on reasons why later.

What is blockchain technology?

Blockchain is a network of distributed data blocks linked and secured with a little help of cryptography’s fine art. It was introduced in 2008 by none other than Satoshi Nakamoto (aka nondescript bitcoin dude). Originally designed as a cryptocurrency transaction framework, it slowly moved beyond to the different areas and is now used in such fields as medical care and insurance systems.

How blockchain is changing advertising

Ad Tech is a kind of industry that embraces many nascent technologies and makes them work for its benefit, thus evolving them and the business to new heights. Sure, this attitude is spurned out of necessity. Still, it does not negate that the ad industry is relatively open-minded in adopting and developing new technologies. Blockchain is no different in that regard.

How does Blockchain work in AdTech Industry?

1 Transparency

As you know — lack of transparency equals a lack of trust. The fact of the matter is that many things are happening in the dark during ad tech operations.

2 Supreme Accountability

Trust issues are running rampant in the ad tech industry. The fact that one needs to rely on strangers’ kindness is not particularly reasonable, but it is the business’s reality. And as such, it needs to be resolved.

3 Foolproof operations via Smart Contracts

The concept of smart contracts is brilliant. Plain and simple — it is a foolproof mechanism. If something is not right — it will not proceed.

4 Limit Ad Fraud Activity

One of the biggest virtues of Blockchain is that everything is visible, and thus you have an idea of what others do inside the system. This alone can seriously limit numerous fraudulent activities, such as bot traffic, domain spoof, and pixel stuffing.

5 Privacy

Privacy is probably the biggest issue in the industry right now. While industry players pretended that it is not an issue for quite a while, privacy concerns and direct actions to protect it actively choke the industry via Ad Block and other tools.

Challenges for Blockchain In Ad Tech

Insufficient Scalability

The biggest challenge that holds back any significant development of blockchain technology is lacking scalability. The fact of the matter is that blockchain is simply unable to handle such an amount of operations. It is too slow. For example, Bitcoin is currently capable of processing around 2–3 transactions per second. In the case of ad tech real-time bidding operation, you need to process 2–3 million events and more. That’s a bit of an operational gap, right?

Standards are in development

Another big challenge for the full-scale adoption of blockchain in ad tech is the lack of standardization. Why it matters? One word — compatibility. Standards are like a universal language: their existence guarantees compatibility and rapid development of the technology. Standards enable a combination of various solutions into one superior.

Lack of expertise

While blockchain is undoubtedly a trendy buzzword, it doesn’t mean that many experts are active in the fields. Some people can write about blockchain concepts, possibilities, and opportunities. But talk is cheap (unless it is a Keith Richards album). It is the action that matters.


At the moment, blockchain is still an emerging technology with nothing particularly definite in its fold. While it is undoubtedly established as a viable technology that can solve some biting issues here and there, there are still not many practically feasible and economically justified solutions for full implementation. However, that is more of a question of time than an actual problem.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store