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BNN speaks with David Garrity, CEO at GVA Research. He recently became a board member of a blockchain company BTCS Inc. and is becoming more involved in the space. He talks about a particular use case for this emerging technology.
Blockchain Use Case – Advertising Technology (AdTech) Start-up – ClearCoin:
For 2017, WPP subsidiary, GroupM predicts $16bn of ad fraud. Non-human activity, bots, and click farms are all sources of advertising fraud. By tracking advertising impressions on a blockchain, ClearCoin can identify which publishers are “high risk” and advertisers can adjust their budget accordingly. There are a number of AdTech security firms tracking bot and non-human activity, with which ClearCoin will partner to address and minimize ad fraud. In the advertising industry, it is common top advertisers such as P&G have advertising budgets well in excess of $1bn. Their media spend goes through an agency, to an ad tech company, to another ad tech company, to another subcontractor, and so on and so forth. With such a highly intermediated supply chain, it becomes difficult to determine which company is delivering which impressions. P&G has cut $140mm out of its $2bn ad spend budget. However, instead of cutting $140mm of ad spend, with ClearCoin P&G will be able to consult a public ledger on which partners delivered bad impressions, thereby weeding out the bad actors and helping the good actors earn more. To deliver on this opportunity, ClearCoin is building an omnichannel ad delivery product (covers all ad formats such as video, display, search, social, native, television, etc.) that allows advertisers to deliver their ads on good inventory while tracking it on a ledger system. The ledger system allows companies to know where their ad dollars are going. ClearCoin (CLR) is token that transacts on the platform.
With Blockchain Addressable Market Size Seen As Considerable, Initial Coin Offering (ICO) Has Become The New Funding Vehicle For Start-ups:
The application of Blockchain technology is seen as bringing about the updating of the world’s technology infrastructure with a concomitant improvement in transparency, authentication & process efficiency. Cryptocurrencies (e.g. Bitcoin) are one blockchain use case, but critical as they serve as the unit of settlement for blockchain-enabled activities. Early investors such as Fortress Capital founder Michael Novogratz, who has called the $10K BTC price, are predicting a cryptocurrency market capitalization of $5TN. For Blockchain start-up ventures, initial coin offerings (ICOs) are becoming common as they offer an efficient fundraising method that relies on a broader investor community funding base than the traditional reliance on a small group of venture capital funds.