Connect with us

Data & Security

Lucidity clearly disrupting advertising via the blockchain

Tony Zerucha

Published

on

“The advertising community is getting really excited,” Lucidity co-founder and president Sam Goldberg began.

Mr. Goldberg was referring to the potential for blockchain technology to continue disrupting the advertising industry, a shift Lucidity (formerly known as KR8OS) is right in the middle of. The blockchain enables high frequency, multi-party data consumption and verification, which, when combined, addresses the advertising industry’s biggest issue.

“The biggest problem is billing performance discrepancies,” Mr. Goldberg explained. “We’re talking billions of dollars, not pennies.”

Until, the blockchain, measuring the effectiveness of an advertising campaign was an inexact science. You may know how many people watched a certain show, but how many were influenced to buy your widget because of the ad you bought there as opposed to the one in a magazine?

Sam Goldberg

For the longest time the best answer you’d hear was along the lines of “tough to say”. Now with Lucidity’s technology, install their tracker and watch in real time as the blockchain tracks, verifies, and reaches consensus on all marketing data.

In the wake of the Facebook/Cambridge Analytica scandal, companies working with data have to walk a fine line between privacy and transparency, two concepts that don’t always work well together. Follow the challenges companies in the European Union have to face to comply with GDPR and MiFID II, where one forces companies to comply with stricter measures to protect the sanctity of data while the other mandates they share some of that data with competitors.

“They don’t always mesh,” mr. Goldberg said of the two processes. “It’s a significant challenge in the blockchain space.”

The concept of permissioning works well in some sectors, Mr. Goldberg said. Multiple competitors in a specific sector can sign on to a single system and limit who gets to see their data, while all benefit from detailed and accurate network-wide data analysis. Financial institutions operate in an environment where a single customer may have credit cards with two banks, a mortgage with a third, and insurance with someone else. They benefit from a shared onboarding process where the data enters the system on the client’s first interaction and can then be used by other companies for additional registrations without those parties seeing private or proprietary information. Less onboarding time equals happier customers and higher profits.

But like with most new technologies, there are still problems to be worked out, Mr. Goldberg said. For permissioning the issue is scaling, as the root chains for current solutions an only handle 20 transactions per second, a rate well below the requirements of digital advertising. Mr. Goldberg said he is confident that problem will soon be addressed and when it does, it will be on the Ethereum blockchain.

“We’re confident in Ethereum,” he added. “It’s battle tested and it works.”

Solutions may involve proprietary sidechains, which allow data from one blockchain to be transferred to another and brought back only if needed, and sharding, which breaks down large data bases into smaller, faster parts, Mr. Goldberg said.

When those problems are solved, Lucidity’s very effective solutions will become even better, Mr.Goldberg said.

“If advertising with us, you’d be able to see,verify and audit all digital advertising events privately. You’d see…only events occurring on your side and applications. That allows us to have transparency for ads to get value but not expose data.”

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

Continue Reading

Latest

Companies