The beginnings of the Internet brought visions of a peer-to-peer economy that would connect the world. Along the way, the valuable information and data on the Internet was centralized to major companies. These major companies now reap the value of the information and data of users and publishers. The most glaring example is the duopoly of advertising giants Facebook and Google. Combined, these two companies boast a market capitalization (valuation) of over $1 trillion. Their large valuations are partially driven by their access and control of user content and data which creates a centralized architecture of the web. This centralized architecture may be poised to change because of developments in blockchain technology.
The rise of blockchain technology, the distributed ledger system underpinning cryptocurrencies, may radically alter the landscape of who owns the information economy. There are reasons to believe the end users of the web will start reaping some of the value of their data and content creation on the web. After all, the web was created by the people, but much of the created value gets captured and centralized to major companies. Particular uses of blockchain technology may realize a stronger peer-to-peer economy. As we’ve been working on smart contract based advertising and media buying technology, we’ve thought about assigning value back to the users and publishers who create the content and data that make the information economy valuable.
Stated very simply, users and publishers create content and volunteer their data while the duopoly of Facebook and Google combine for over $100 billion of annual revenue. Our next product release aims to help publishers and users reclaim some of this value. The next product release will close the gap between the advertisers, publishers, and users who make the information economy as large as it is. By connecting these three parties directly, it will create a close-knit peer-to-peer economy where the value comes back to publishers and users. The manifestation of this scenario is made possible by blockchain technology and what we’re working on.
This next product release will do more than just bridge the gap between the key parties of the information economy ecosystem. Given wide adoption, the release will give us much greater quantities of ad inventory that can be sold to ad buyers. The best way for us to sell a large quantity of ad inventory is by plugging into major demand sources (known as Demand Side Platforms “DSPs”). This will shortcut the process of selling inventory to individual buyers by going straight to large sources of demand (ad buyers). With the right adoption, we believe the next product release will be an important milestone to stimulate greater activity in the XCLR ecosystem.
More details on this product release are to come and we are aiming for an initial release in October. Publishers who are interested in joining the interest list for this program should use our contact form to receive more information when it’s ready. Users should stay tuned to our blog and social media channels for future updates.