So How Does DATA Actually Work?

Ad fraud is the most acknowledged pain point in digital advertising. More than 40% of online ads traffic is bot traffic which cost advertisers $16 billion annually. As the middle layer between advertisers and publishers grows in size, various services and actors in the demand and supply chain also manifest into insurmountable complexity, creating loopholes for the bad actors that manipulate the system for the gain. Detecting ad fraud is a mouse-and-cat game. Much of the catch is made after the fraudulence is already injected into the trading chain of reactions. The centralized IAB black- and white lists lacks data integrity, nor dynamic real-time update or transparency.

As we know, engaging user’s attention to receive the marketing message or content of and from the advertisers is key to effective marketing. Since monetization relying on advertising has contributed to large share of revenue stream for most internet companies, the current model developed in the past decade has been built on a centralized economy by gauging end user’s attention to the ads for better targeting. Failure to target and retain the user attention has resulted in the increasing usage of ad blocking software on more than 600 million mobile and desktop devices.

There is growing level of distrust amongst the end users, advertisers and publishers.

DATA is a blockchain based advertising protocol and technology stack to disrupt the digital marketing landscape, using the most current and proven blockchain technology and powered by AI, enabling data authentication in the decentralized infrastructure for the DATA Ecosystem. Data is highly encrypted, stored in local device yet updated and shared in real-time.


As an open source protocol, the system consists of four layers: P2P Mobile Storage Layer, Blockchain Layer, SDK Management Layer and Application Process Layer.

1.P2P Mobile Storage Layer

P2P Mobile Storage Layer is based on a P2P protocol. It leverages the distributed Mobile Metadata Management (M³) system using Distributed Hash Table (DHT) and file erasure coding that are Inspired by IPFS but designed specifically for mobile.

2.Blockchain Layer

Blockchain Layer is a standalone public chain, forked off Ethermint (the Ethereum implementation on Tendermint consensus engine) utilizing the consensus engine and incorporates proof of attention (PoA) mining rules. We develop the smart contract API’s to interact with the P2P mobile storage and the state channels network.

3.SDK Management Layer

SDK Management Layer logs encoded user activities by non-cooperative game theory based incentive modeling and AI technology to generate smart contracts for device level reputation. We will release the frontend SDK as an open-source project maintained by Blockchain Data Foundation community so that the public can audit the credibility of the algorithm and the code. This layer applies the Reputation Management on the three major participants in the transaction chain, namely the end users, publishers and advertisers.

4.Application Process Layer

Application Process Layer consists of protocol enabling and managing the fast creation of more applications or use cases to be built on top of the DATA stacks and function in an expansive ecosystem. Features such as fraud prevention, micro payment, smart contracts and DATA tokens can provide the convenient building blocks for the cost saving creation of applications such as premium content purchasing, online gifting, real-time bidding, etc.


The four stack layers are the foundation to allow the processes and data interact with each other and move smoothly in the ecosystem amongst the five key players in the ecosystem: advertisers, publishers, users, DATA network and Blockchain Data Foundation. Below is an illustration of the system functionality flow as ad flow, data flow and token flow.

1.Ad Flow

Moves ads from advertisers/ad networks/DSP to publishers/developers and then to end users. This is no different from traditional ad flow. In the future development of DATA, when our digital tokens substitute monetary transaction in the ad flow, decentralized exchanges such as bidding, DSP and SSP will be greatly improved in efficiency.

2.Data Flow

Transmitted data logged and saved on a user device to P2P based mobile storage. DATA transforms individual devices into nodes of the mobile storage network. Data in the storage is constantly queried and validated by the DATA nodes.

3.Token Flow

Distributes the tokens from DATA network to end users, publishers/developers as well as DATA Nodes. After DATA network validates data, identify fraudulent user profile or device, it issues tokens as “coinbase transactions” only to relevant contributors.


DATA is a public blockchain that supports Proof of Attention (PoA) based mining, smart contracts and state channels for micropayments. We develop a peer-to-peer mobile metadata management system(M³), and non-cooperative-game based reputation modeling technology to ensure the integrity of the system. In this ecosystem, reward is given to end users and publishers with tokens for the actual consumption. A reputation modeling is applied to determine the right amount of reward, where a zombie device can be immediately detected.

Publishers are now incentivized to distribute to high quality inventory and advertisers are pleased receiving solid ROI instead of spending on fruitless fraudulency. Trust amongst all parties is incentivized, measured and certified.

Functioning as the ISO9000 standard to quality management system, DATA Project, defines the building blocks and protocols to process, interact and manage among functionalities and external applications. Expanding on the decentralized nature of blockchain protocol, DATA will be collaborating with industry players including advertiser, agency, DSP, ad network, ad exchange, SSP, publisher and etc. to fine tune the derivative set of protocols for greater adoption.

DATA Project is the new paradigm for a secured and trusted digital advertising economy, where fraud is proactively detected and prevented much earlier before the damage ripples into the trading chain. The health and integrity of the entire data flow is now ensured. DATA Project, is the corner stone of a blockchain based and trusted digital advertising ecosystem where everyone wins.

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