Blockchain technology relies upon a shared record of transactions across a peer-to-peer network of computers. Every computer in the network has access to this shared record and uses special software to participate in the process. The computers on the network verify transactions in chunks of data called blocks. Once a computer verifies the transactions, the network adds the block at the end of a chain of other blocks. These blocks stretch back all the way to the earliest transactions in the system in an unbroken chain.
The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
The collaboration based network effects of blockchain are already changing the way global industries perform transactions and share data. This shift in paradigms provides mutual benefits for digital markets, with advertising being one of the fastest growing industries.
Blockchain creates a medium by which two or more completely anonymous or semi-anonymous parties can complete various types of transactions at a low cost. Essentially, blockchain functions as a distributed ledger, and it possesses two critical features. First, once data is stored in the ledger, it is typically complicated (more so than with other technologies that are used today) to modify or delete. Every record on a blockchain is permanent and will last as long as the copy of the entire blockchain exists. Second, the ledger is distributed among all the participants on the blockchain, and each user maintains a complete copy of the blockchain.
There is no centralized controller of the data in the blockchain and no single point of failure for a blockchain’s operations. If one or more users are disconnected from a blockchain, the blockchain continues to function, and no data is lost.
This ability to keep a fully verifiable and immutable ledger or database available to all members of a particular group or market makes blockchain a unique tool to address challenges as diverse as payment processing or fraud prevention.
For ad buyers, blockchain could eliminate much of the guesswork required to mount a campaign. Blockchain is transparent and encrypted, so it can stamp out empty bot clicks and other threats that can saturate a campaign. Advertisers will know that it's real people engaging with their ads, protecting the integrity of their campaign data and preventing wasted money in the long run. Trust and transparency are two elements vital to digital advertisers, and blockchain is likely the game-changing solution they need.