AdEx is a Blockchain-based advertising exchange that aims to address significant problems in the online advertising landscape, such as, advertising fraud, privacy, and consent to receiving sponsored messages, etc. AdEx envisions a market for publishers and marketers to exchange web advertising services openly.
The main feature of AdEx is the AdEx User Profile, which is a personalized dashboard where users can control the ads they see and receive. Giving the user additional control is very positive for advertisers since users tend to volunteer more information about their shopping preferences and consumer habits when they receive customized ads in return.
History and How it Works
The AdEx platform was founded by Ivo Georgiev and Dimo Stoyanov, who are also the founders of Stremio, a video content platform that grew to over 4 million users in just two years.
AdEx was built on the Ethereum Blockchain. Plans to implement a NEO Blockchain port have been announced by both parties. AdEx uses a combination of Proof-of-Work and Proof-of-Stake as consensus methods. Tokens will be emitted in proportion to the amount of network activity.
The AdEx Network has several layers. The foundation is the ad exchange, which is developed from Ethereum Smart Contracts. Solutions for a faster layer either on top or side-by-side are being experimented upon.
The ad exchange is built to facilitate the entire relationship between publishers, advertisers and end users, therefore replacing the usual network of multiple exchanges, SSPs and DSPs and all the complexity, inaccuracy and inefficiency that comes with it.
On top of the exchange, AdEx features DApps for the advertising portal, publishing portal, and the AdEx profile, which is for end users. A DApp is a distributed application that connects and interacts with the Ethereum Blockchain, typically with an interface that is user-friendly. All of AdEx’s DApps will be browser-based and easily accessible online, hosted by AdEx – but since they interact with the blockchain directly, anyone can run their own instance of a DApp if they want to.
On the AdEx network, end users can provide feedback as to the quality of the ads, and control how their personal information is used and shared, as well as what types of content they see. Unlike other blockchain-based advertising startups, users of the AdEx network will not be rewarded for interacting with ad content.
The AdEx token (ADX) is the only accepted form of payment on the network. It is used to bid for ad space/time. The ADX supply will be increased at a slow rate proportional to network activity. The goal of implementing this mechanism is to control the inflation of the price of the ADX token. This way, it can remain a viable payment method for services on the network, rather than a volatile investment coin.
The initial Crowdsale for the project’s tokens was held between June 30th, 2017 and July 30th, 2017. The plan to release the first Beta version of the Platform is February 2018.
The total number of tokens created will be 100M, of which 80% was made available to be sold to the public. It is estimated that between 36 and 42M tokens were distributed during the Crowdsale. 16% of the tokens will be saved for the AdEx team, the remaining four percent (4%) will be distributed between the bounty program for the community and WINGS DAO.
Even though the AdEx project has solid technology and a robust team, some concerns were raised about the fact that a Token Crowdsale was held before any platform was made available to the public.