Directed Acyclic Graph (DAG)
It is a well-known fact within the Bitcoin community that blockchain's current challenges for mass adoption are hindered by its inability to remain secure when block sizes and the speed are increased. In order to solve the speed & security issues, Lydian's R&D team has employed the Directed Acyclic Graph (DAG). It is an alternative protocol to blockchain, a ledger system that contains no cycles as it uses each transaction on its chain to solve the one prior. It circumvents the block size issue and increases the confirmation time. It further removes the need for miners, eliminating the fees paid to verify the transactions as each transaction is followed on a 'chain', eliminating the inefficiency related to miners picking the transaction based on the fee.
Lydian's two products, MonaChain and MonaBrowse will now utilize the DAG protocol on a model called Whisper Network Protocol (WNP). WNP supports the speed, security, and consensus while transactions fees are kept to a minimum. This model uses each transaction on its chain to solve the ones prior. As additional transactions are conducted on the chain, the process moves through quicker enabling all transaction to be validated within seconds. This increase in speed is critical for digital marketing platform as programmatic platforms require a full cycle response to be under 100 milliseconds, including receiving the bid request and serving the ad, using a real-time bidding platforms.
WNP solves for the speed and alleviates the security scalability; These factors are alleviated as the network infrastructure and capacity increase.
Unlike blockchain where miners create a hash of a single parent block with a single extend chain, WPN blocks are created in a parallel. Each block is valid if all the predecessor responses are valid and recorded by the node.
As our India based team builds its first DApp (Decentralized Application), MonaChain, WNP brings endless potential and use cases to solve the material challenges of scalability plaguing the blockchain adoption by digital marketing sector. The WNP aims to achieve decentralization, security, and scalability. Many of the blockchain methods address only 2 out of 3 issues, and even those options are laced with tradeoffs to achieve scalability and compromise true decentralization. In a relative example, to use blockchain to service digital marketing platform needs (a sector that runs billions of transactions) would be similar as if an attempt to use a dial-up modem to stream Netflix.
The strategies deployed to defraud programmatic digital advertising are ever evolving, and marketers must use technology and data to maximize the impact of client placements. Many anti-fraud systems have attempted to avoid, circumvent, or innovate around ad fraud, but most companies ultimately create new centralized ventures that add friction in the form of increased fees to customers, and create a new "moving target" against which fraudsters innovate.
Instead of creating a new ad exchange, browser, or new acronym for the ad-ecosystem, the DaVinci11 Corporate Family is developing MonaChain, which seeks to leverage blockchain technology and an industry leading transactional data set to combat common varieties of ad fraud, and drive value to Lydian's clients.
The DaVinci11 Corporate Family offers the unique value proposition of having one of the largest advertising and placement data sets in the industry, along with a deep bench of existing clients placing advertisements through its systems worldwide 24 hours a day. DaVinci11's existing rich data set will populate MonaChain's ledger, allowing other participants to plugin into the MonaChain which should help brands optimize their campaigns to avoid ad fraud, provide publishers with higher returns on campaigns, reduce intermediaries and provide consumers with a rich user experience.
MonaChain will be able to provide client benefit as soon as it goes live by leveraging and analyzing existing industry transactional data, without the need to purchase external data sets, or convince other market actors to modify their behaviors to generate baseline data.
The varieties of ad fraud targeted by MonaChain include:
· Selling fake inventory, i.e. domain spoofing: Many advertisers purchase placements using algorithms that are not able to identify "look alike" domains that may not actually exist, or may have negligible use traffic. MonaChain will track advertising placements, and capture data to allow bidders to identify spoofed sites and avoid re-placing useless ads on non-existent or misleading web domains.
· Automatic refreshing: Many sites use automated refresh software to create the appearance of multiple visitors and multiple impressions. By tracking IP addresses per impression, MonaChain will permit the identification of certain behaviors and allow advertisers to avoid placements on offending domains.
· Hidden ads: Certain web sites render ads on their pages in a manner so that visitors to that page cannot see the ad. MonaChain will identify domains abusing advertisement placement by identifying abnormally high sales volumes on a given web domain, so customers may avoid placing ads unlikely to be seen by target audiences.
· Proxy users: Internet users who mask their geographical information (typically derived by IP address) by using proxy servers, VPNs, or anonymizers may imitate a unique user in a different location than that user resides, which may degrade the value of the placement. MonaChain will compare a list of sales against industry-maintained databases of known proxy users, corporate virtual private networks, and/ or addresses that allow for user anonymity, to allow users who desire geographically accurate impressions to avoid wasting valuable marketing assets.
· Malware: Hackers and malicious actors have installed malware around the web that has infected millions of users to mimic their cookies resulting in programmatic exchanges displaying highly lucrative ads to these users, unbeknownst to the user, which reduces the utility and return from an ad campaign.
Once MonaChain is successfully implemented and activated, it is expected to result in greater efficiency and lower costs for advertisers who will not waste their marketing budgets on malware, fraud, and useless intermediaries in the programmatic advertising placement system.
No proceeds from the sale of Lydian tokens will be used for the development of MonaChain.
However, once developed, MonaChain will be available to Lydian users as set forth in this whitepaper.
Many internet users have been driven to deploy ad blocking technology because of disfavored legacy advertising practices like pop ups, uncontrollable video-ads, and other intrusive advertising practices. According to PageFair, it is estimated over 615 million devices now use adblockers. Other estimates suggest that up to 11% of the global internet population is blocking ads on the web. Adblock usage grew 30% globally in 2016 and is thought to reach up to 380 million mobile devices. Desktop adblock usage grew by 34 million to reach 236 million devices.
Targeted customers who use adblockers reduce the reach of advertising campaigns and ultimately steal valuable publisher content. MonaBrowse creates a better alternative to ad blockers and allows customers to control the amount, and extent of advertising they encounter during their online browsing experience. DaVinci11's mission is to create personalized experiences for consumers, making ads more relevant as they mimic native information and allow engagement to occur which would grow the entire ad-ecosystem.
In 2016, PageFair predicted the global cost of ad blocking would rise to $41.4 billion for publishers. Preventing ad-blocking would increase publisher revenue and add to the already-existing $232 billion digital advertising industry.
Through MonaBrowse, Lydian users may negotiate Lydian tokens to Lydian who will customize that Lydian user's browsing experience so they may opt to see no advertisement content, or only certain selected content while browsing. Through the proposed MonaBrowse system, publishers would continue to receive payment for their placements, but the Lydian user would enjoy their Internet browsing experience without distracting or unwanted advertising content, and without adjusting their Internet browsing behavior or downloading newly created browsers. The MonaBrowse system will have additional capabilities, including with respect to developing data mining applications and tools, among other things.