Blockchain technology is set to change the market of Internet advertising

The market of contextual advertising is currently the fastest growing, with figures rising to $26 billion in 2016. However, more than half this figure accounted for by only two players — centralized intermediaries.

The current centralized system of buying and selling advertising links is centred on running campaigns in Google AdWords, BingAds and similar platforms. These intermediary services receive a large portion of the money that advertisers pay for the service. The actual Host platform that generates the advertising earns less than 50% of the cost of advertising.

Additionally to the intermediary party acquiring a large fee, the process is further complicated by the Hosts and Advertisors having to become registered in the system of buying and selling advertising links, in order to operate. They must create an account, enter phone numbers, e-mail, credit card and other personal information. Advertisers also need to make a large down payment, which is usually not refundable.

There are some other shortcomings: there is no mechanism to transfer your balance to another member of the same advertising network. Poorly designed mechanisms are not built to handle a combined role where the same party is both the advertiser and the advertising platform at the same time.

The blockchain technology allows us to minimize these disadvantages and to significantly increase the income of advertising for the Host SItes, and reduce the expenses of Advertisers.

This principle applies using advertising system EmerCoin Link Exchange. This system decentralises the system of payments, which results in the sale and purchase of sponsored links going directly between parties without intermediary organizations. The costs of placing sponsored links with this scheme are much lower than in centralized systems.

The scheme of EMC LNX as follows:

  1. The advertiser, known as a “Buyer,” creates a text file of the advertising contract that controls the contract parameters, such as: the URL of the advertised website, the cost per click (EMC), language lines of advertising and advertising the actual line. There is no third party interference or censorship.
  2. The Buyer comes up with a unique name for the contract. The name can be any text string without delimiters such as, “login”.
  3. In the EmerCoin wallet a signature is created of the name on any of the payment addresses listed in the wallet.
  4. The Buyer logs in using a billing address in the TXT field of the domain to keep a record of their site. It is necessary to maintain proof within your advertising sites that the contract was released with the appropriate site and not with someone else.
  5. The Host puts the signature in the contract, and then publishes a contract in the blockchain. The contract is distributed over the network and becomes accessible to all advertising sites.
  6. About once a day the owners of the sites loads contracts in its database. When you load each site, it checks the contract for a number of parameters. If the contract has passed validation, it is loaded into the local database with the corresponding rating that determines the probability of the ads on the site.
  7. When a site receives a Visitor, the subsystem EMC LNX selects from a database of contracts, generating a casual contract with probability proportional to the rating of the contract. If the visitor ignored the ad link, nothing happens.
  8. If a visitor clicks on an ad, the control is passed to the program lnx_ref, which creates an invoice (invoice) for the Buyer and redirects the visitor to the target site, i.e. the site of the Buyer.
  9. On the website of the Buyer, the Visitor enters the program lnx_pay, which received the invoice, makes a decision about whether it is necessary to pay for the transaction. If it decides that it is necessary, lnx_pay pays the bill immediately or — if the platform allows — defers payment until the next click from the same site.
  10. If the visitor is recognized not as a “fraudulent click” but genuine, he is redirected to the Buyerr’s website. The system ends.

To work with EMC LNX, Users do not need to create accounts, but just to load EmerCoin wallet on to their computer. In the EMC LNX system there is no centralized control and can only be be blocked at the request of the leaders of the platform or under pressure from the authorities. There is no censorship, and the advertiser sets the prices in accordance with market principles, the price that they are willing to pay, and in return, advertising platforms decide whether they are ready to provide a place for this price.

The main advantage is that payment for the placement of the links goes directly from the advertiser to an advertising platform without intermediaries and with no restrictions on deposits and withdrawals.

Currency — the payments are made in Emercoin Credits — transferred to the account in the wallet immediately after the conclusion of the contract.

The basic principle in the defence against fraud in the system EMC LNX is trust. The members of the system — Hosts and Buyers, receive a rating, which changes depending on the actions of the company. If the advertiser stops paying Hosts for posting links, thier rating goes negative.

More information about how to configure EMC LNX can be read here: https://emercoin.com/EMCLNX

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