By
Mayowa Adebajo
March 12th, 2024
Blockchain-based DATx, the product of collaboration between Cosima Foundation and Avazu, is to decentralize the current digital advertising structure.
Singapore-based Cosima Foundation has launched a new blockchain called DATx in collaboration with Avazu, the leading advertising platform with a worldwide reach. This new technology will leverage blockchain technology to power a sophisticated decentralized digital advertising terminal built around user participation.
More than two decades ago, a great breakthrough of online banner advertisements stroke, signalling that the age of digital advertising has begun. The world observed ad models evolving from simple banner ads to more technologically advanced search engines, such as paid search results display, pay per click models, and targeted advertising.
Yet, as far as the industry has grown, it continues to be held back from achieving true progress with the latest technologies, such as big data insights and artificial intelligence (AI) or machine learning, mainly because the collection of user behavioral data exists in cluttered fragments, centralized within several silos that are inaccessible to each other.
DATx takes apart the current structure, founding its solution in decentralization by leveraging remote user behavior data storage and AI-powered methods, aiming to build a new, smart advertising ecosystem.
With a large archive containing comprehensive user behavior records, users can simulate personas to glean business insights related to the intricacies of clicks, views, read durations and purchase conversions.
DATx will employ the delegate proof of stake (DPOS) consensus mechanism to secure its blockchain, while providing a highly concurrent transaction processing with low delays, resulting in a capacity of up to a million transactions per second. In DPOS, it begins with the election process that selects a group of block producers to ensure that stakeholders eventually gain control over the network, mitigating potential losses.
DPOS and parallel chains will also address delay and data throughput issues, keeping a robust and secure structure even in cases of unlikely malicious activity by fraudulent majorities of block producers, using an algorithm to choose block producers and verify node quality.
Since DATx is built with a massive capacity outperforming the fastest available blockchains, its ad algorithm engine is able to respond to incredible amounts of users and advertisements simultaneously, even with their diverse preferences and behavioral patterns. DATx utilizes proven Deep Neural Network and Logistic Regression to produce offline sorting models, while updating online sorting models based on Reinforcement Learning intelligence for enhanced productivity.
DATx’s mission is to create a win-win decentralized digital advertising ecosystem that encourages active participation of users via an incentivized model rewarding all interactions with DATx tokens. By helping advertisers deliver better, more suitable content, users are compensated with DATx, while advertisers can better use the data to improve targeting algorithms and deliver higher converting content.