Securities exchange operator Nasdaq has announced it is helping to compile a blockchain for ad contracts, in partnership with the New York Interactive Advertising Exchange.
The blockchain is billed as being a transparent market mechanism for advertisers and publishers to set up ad contracts, creating a more fluid, price-driven environment for digital advertising.
Nasdaq will supplement the aims of the New York Interactive Advertising Exchange project by providing the underlying technology, which is set to rely on a blockchain mechanism for trading ad contracts between publishers and advertisers.
The solution will be cloud-based, and will rely on the blockchain for its core functionality, in terms of recording contracts and transactions between related parties.
It is hoped that the new system will provide a more efficient basis for the wider digital advertising industry, said to be worth in excess of $32 billion per year.
Richard Bush, of the New York Interactive Advertising Exchange, said that the move would help reduce the risks and cost profile associated with advertising contracts, en route to establishing a more automated market for trading in digital advertising contracts.
“Trading, a vital part of other market sectors, has now come to media. With the ability to trade guaranteed media contracts, advertisers and publishers can now be efficient and rid themselves of unnecessary costs and risks. NYIAX is leveraging our Nasdaq Financial Framework architecture, which draws on cutting-edge technology, including the integration of blockchain technology as our core ledger, as well as cloud-enabled trading and clearing capabilities.”
Nasdaq’s involvement follows on from similar projects for a number of its other exchange clients, reflecting the extent to which it has already developed expertise in blockchain-based market solutions.
Nasdaq has already filed patents for its technology, in addition to launching its own private market Linq, powered by the same infrastructure, back in 2015.
With the latest rollout of a blockchain system, the technology is coming ever closer to the mainstream.
While most projects remain in advanced development and testing phases, 2017 is widely anticipated to be a big year for the technology, as it starts to become more prevalent across a range of industry sectors and uses.