MAD Network - A Decentralized Network for the Advertising Industry


    Blockchain technology promises to alleviate many of the programmatic advertising industry’s biggest
    pain points. Decentralized networks help disintermediate third-party bundlers and link advertisers
    seamlessly with publishers. Additionally, unlike the current market of data secrecy and walled
    gardens, distributed systems can more accurately reflect value, effectiveness and campaign reach.
    The MAD Network is comprised of three distinct blockchain layers: MADnet Books, MADnet Core
    and MADnet Data. The MADtoken will be escrowed to activate a payment channel for the
    accounting, fulfillment and instant reconciliation of ad delivery. Advertisers and publishers will have
    the option to exchange on credit or settle in real time with their escrowed MADtoken or
    cryptocurrency of choice. Ultimately publishers have the final say in how they would like to be paid.
    MADnet Books is a private chain maintained by the AdLedger Consortium, designed to track highfrequency
    network transactions, expose price manipulation and facilitate accurate reconciliation.
    MADnet Core is the decentralized ad server and exchange powered by our proof-of-real-work
    algorithm. MADnet Data is a data storage layer that facilitates pseudonymous, one-time-use sharing
    of consumer data to increase the value of publisher inventory while drastically improving targeting.

    MADNET BOOKS Decentralized Payment Rail

    MADnet Books is a decentralized payment rail for staking Insertion Orders using MADtoken, an
    ERC20 token issued on Ethereum. MADnet Books will initially be fulfilled via MadHive’s
    centralized ad server. The decentralized payment rail will open a tokenized marketplace for
    exchanging the value of an impression. Advertising spend tracking will be open to create a fair,
    transparent network that penalizes price manipulation. With the advent of the open network,
    advertisers will be informed of third parties that are involved in the ad placement. The advertiser,
    empowered with data insights, will no longer be beholden to complicated third parties that are
    currently taking large margins.
    A recent lawsuit explains the state of the ad tech industry. The Guardian sued the Rubicon Project
    for “recovery of non-disclosed buyer fees in relation of Guardian inventory.” Exchanges, SSPs and
    DSPs often hide fees in the fine print of contracts and manipulate prices by adding arbitrary fees
    after private auctions. As The Guardian discovered, the ad tech industry has a reputation of
    protecting information by building black-box systems that third parties learn how to manipulate.
    Hiding transaction flow allows for bad behavior such as creating fake bids or misrepresenting
    transaction prices. The payment rail will empower advertisers to avoid inefficient advertising
    spending and increase the value of their spending.
    An advertiser will utilize the MADnet Books layer by staking MADtoken to create an Insertion
    Order. Insertion Orders are smart contracts that specify how ads should be executed. As
    MADtokens are staked, an equivalent value of credit (“MADcred”) will be generated and exchanged
    on the MAD Network. The MADcred is paid to the publishers for placing ads in near-real-time.
    MADcred will be a non-fungible token with an explicit reference to the Insertion order contract in
    a manner consistent with the ERC non-fungible standard. After the MADcred is spent, a publisher
    redeems their MADcred in a settlement step based on the payment terms established in the
    Insertion Order. The publisher then returns the MADcred to the Insertion Order, signaling receipt
    of payment. As the publisher confirms payment, MADbonus is paid to the advertiser. MADbonus is
    a loyalty reward for utilizing the MAD Network. If a publisher does not return the MADcred to the
    Insertion Order, the advertiser may decide to blacklist them to avoid the possibility of not receiving
    the MADbonus in the future.

    Advertisers may stake MADbonus in place of MADtoken for their Insertion Order. MADbonus is a
    reward for early participation in the network and incentivizes advertisers to continue using the Mad
    Network by allowing them to reduce the required amount of MADtoken needed when staking
    Insertion Orders. This also solves the problem of the MADtoken market cap being an upper limit
    on ad spend that can be delivered on the network at any given time. MADbonus may only be used
    one time.
    MADbonus will be issued in a decay curve. Initially, more MADbonus will be issued to excite new
    entrants to use the MAD Network. As the MAD Network grows, MADbonus issuance will be
    reduced. Since the MADbonus maintains its value only when the advertiser makes good on its
    commitment to pay fiat to publishers, this mechanism further incentivizes publishers to come on
    the network in order to gain access to the ad spend committed to the system.

    MADNET CORE -  Decentralized Ad Server and Exchange

    MADnet Core is the ad server designed to execute buying and selling of advertising. MADnet Core
    will be powered by our proof-of-real-work algorithm, which combs through ad requests and
    campaigns to find fast feasible matches, maximizing throughput simultaneously ensuring campaigns
    deliver and inventory gets monetized. Feasible matches are defined as pairings of individual ad
    requests to campaigns that meet all publisher and advertiser rules including real time restrictions
    such as frequency caps and industry separation.
    MADnet Core transactions are candidate matches and blocks are served when a sufficient number
    of matches are found. Serving a block indicates that the set of candidate matches has been validated
    by other nodes checking the rule set intersection. MADnet Core serving the block includes
    executing the orders corresponding to the match transactions with the publishers on behalf of the
    advertisers, validates that the ad was served, and keeps an audit trail of events on MADnet Books
    allowing for near-real-time feedback to both sides.
    The MAD Network follows a proof-of-work protocol in which the cryptographic puzzle
    constituting “work” is replaced with a real-world task.

    Due to high volumes of ad requests and campaigns running on the network, and the incredibly high
    cardinality of the rule sets, finding a match is hard. In the worst case, finding a match is a brute force
    challenge with complexity, bound to be determined by the large cardinalities. As “matching rates rise,”
    the number N of matches required to discover a block is increased, controlling difficulty and
    establishing expected block times. The critical property that makes “ad match finding” a valid puzzle for
    proof of work is the fact that verifying the rule set intersection is trivial compared to finding a match.
    In the best case, smarter algorithms may uncover patterns allowing a node to estimate match
    likelihoods, allowing for faster mining (“matching”). Smart algorithms that “match” faster can be seen
    as analogous to the addition of GPUs to the Bitcoin ecosystem — here, the parameter N ramps
    significantly to control block times to the desired rate, but the difficulty feedback in the mechanism
    ensures that while innovations in matching algorithms may yield short-term boons to miners
    (“matchers”), the network will not lose its intended proof-of-work property as long as there is
    sufficient demand for advertising.

    Note that the existing ad tech ecosystem currently serves millions of ads per second. An additional
    property of this solution is the fact that the matching incentives drive the system toward a state of
    being able to serve more ads per second with the same hardware, helping to ensure the network can
    scale to meet the demand of the ad tech ecosystem, and getting the auditability provided by blockchain
    governance, all without wasting energy on hashing computation.
    The proof-of-real-work scheme is subject to the criticism that miners doing ‘real work’ may find
    incentives to take actions out of alignment with those of the advertisers and publishers. This is an area
    of active consideration but the MADnet Core is a consortium network and therefore the 51% attack
    sufficient to serve ads that fail to match the advertiser and publisher ruleset intersection would be a
    transparent and corrective measures would be handled at the level of the Adledger consortium.
    Alternatively, nodes might find throughput efficiencies in ways that advertisers or publishers felt
    unfavorable; however, this can be addressed by adding additional rules to the publisher and advertiser
    rulesets to restrict the unfavorable matches from the feasible ruleset intersection. While practical
    implementation challenges are expected, incentives within the consortium are sufficiently well aligned
    to support proof-of-real-work for decentralized ad serving.

    MADNET DATA - Decentralized Data Management Platform (DMP)

    MADnet Data is a decentralized Data Management Platform (DMP) charged with the governance
    and accounting of data usage within the MADnet Core. Miners verifying matches between
    advertising campaigns and ad requests from publishers do so using 1st, 2nd and 3rd party data.

    MADnet Data provides data rights management ensuring that value add data providers
    contributions are accounted for and invoice-able via MADnet Books.
    Existing data management platforms can connect with MADnet Core via an application
    programming interface (API) to provide targeted information for the serving of ads. This function
    will later be replaced by MADnet Data, an extension of MADnet Core and a decentralized DMP that
    captures information from the use of MAD Network and allows peers within the network to
    exchange information.

    We are experimenting with the use of homomorphic encryption to power atomic data swaps for
    one-time-use data exchange. Impressions can ideally be served to a user without anyone knowing
    the true identity of a user or their information. This prevents third parties from taking data and
    selling it to competitors, and provides publishers with a vehicle to monetize their data without losing
    sole possession of it. This results in an efficient market for data exchange and allows for true price
    discovery of users, impressions and their associated data.


    The MADtoken serves several purposes:

    - Acts as a “software license” that activates a payment channel for the accounting,
    fulfillment and reconciliation of ad delivery

    - Incentivizes participant behavior to be aligned with the benefit of the network

    - Bootstraps the long-term development of the MAD Network

    The MADtoken is the exclusive way for network participants to access the features of MADnet
    Books, the decentralized payment rail powering the ecosystem. Advertisers stake the MADtoken in
    Insertion Orders, which are smart contracts that specify how ads should be executed. Each Insertion
    Order produces an equivalent amount of MADcred, the only acceptable payment method within the
    MAD Network.
    The MADtoken is an ERC20-compatible token, meaning it will easily integrate with existing
    decentralized infrastructure including wallets, exchanges and smart contracts.


    Adam Helfgott, Project Lead
    Adam is a CTO and serial tech entrepreneur. As the co-founder and CEO of MadHive, Adam
    conceptualizes and builds OTT ad tech with a blockchain architecture. Adam has worked
    directly on multiple blockchain projects and has held strategic advisory positions within several
    leading blockchain and media companies including Gem and IMG/WME.

    Tom Bollich, Lead Architect
    Tom is an entrepreneur in the technology space, particularly in “gamification of economies.”
    Before advising various Fortune 500 companies on “gamification,” he was a founding team
    member and studio CTO at Zynga. Tom has been at the forefront of many disruptive trends we
    now see as commonplace, including gamification, online casinos, real-time labor and even

    Konstantin Richter, Token Strategist
    A serial entrepreneur in the SaaS media space, Konstantin is an advisor to leading blockchain
    companies like Gem, ShoCard and He is the co-chair of the advertising consortium
    AdLedger and CEO of Blockdaemon.

    Chris Powers, Project Manager
    Chris is a vice president at BTC Labs, a venture studio building a suite of decentralized
    applications for forward-thinking media companies. He previously spent eight years in
    Shanghai consulting for investment banks and mutual funds on the Chinese capital markets
    before joining ICOAGE, the world’s largest ICO platform, as Director of International Markets.


    Product Deck:

    White paper:

    Token Information:


    January 2015 - MadHive Team first ideates and conceptualizes blockchain solutions for the ad tech industry
    April 2016 - MadHive Launches
    August 2016 - MadHive completes first round of seed funding
    September 2016 - First ad tech blockchain POC
    February 2017 - Team begins developing a centralized ad server with hashed data
    June 2017 - Tegna becomes MadHive's first paying customer
    June 2017 - MadHive leads the first inaugural meeting of AdLedger
    August 2017 - MAD Network hires its first Lead Blockchain Engineer
    November 2017 - MAD Network Contribution Period
    Janurary 2018 - Grow the MAD Network development team
    April 2018 - Launch centralized version of MADnet Books with full transparency
    August 2018 - Launch centralized version of MADnet Core compatible with MADnet Books
    November 2018 - Introduce MADtoken economy within MADnet Books










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