How Can Blockchain Prevent Click Frauds?

How Can Blockchain Prevent Click Frauds?


Due to lack of transparency frauds in digital advertising have become a serious issue. This needs to be addressed ASAP.

Gone are those days when online advertising was simple? Over the years the digital advertising agency has undergone an evolution. It has taken to its advantage technology, one of the result of which is visible in the form of ads on all the digital platforms. Now advertisers get more exposure due to multiple devices like a smartphone, PC or any other online device.

Ad networks work on Cost-Per-Mille (CPM) model, where the publisher bills the ad network for every 100 ad impressions delivered. Due to this advertisers need to make sure that what they are paying for is delivered to the right viewers. For this, real-time bidding and publication have been implemented but it isn’t as transparent as it should be. As a result, click frauds, advertising frauds have become common and prevalent in advertising industry.

What is Real-Time Bidding (RTB)?

It is how complete advertising list is bought and sold on a per impression basis. With real time bidding, ad buying has become simple and easy. Buyers bid for an impression if the bid is won, the ad on the same time gets displayed on the site.

How Marketing Fraud Takes Place?

Advertisers buy a space to display their ad and pay for each impression. If an advertiser buys a space at less price, it isn’t much of a problem. But, if they pay for a complex programmatic campaign to target a specific section of individuals they are charged accordingly. In such a case when advertisement/click fraud takes place, invested money is wasted.

Advertising fraud means when the click is made by a robot instead of a human.

Intermediates are used for programmatic campaigns like data banks, publishers, demand-side platforms, publishing networks and other platforms. This all blurs the clarity level and makes it difficult to evaluate how things are working. Besides, as the market for programmatic campaigns is growing people are trying their best to get piece of the cake by employing false means. According to reports, on an average 20 percent of online advertisement expenses are done on fake and inappropriate ads.  This means a large amount invested by companies is getting wasted due to Click Frauds.

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What is Click Fraud?

It is a type of fraud that takes place on Pay Per Click (PPC) online advertising. PPC means when the website that posts the ads pays an amount to determine how many visitors click on the ads when they visit the site.

With the use of Click fraud (Internet crime) what people do is to earn money instead of a human clicking on ads they make a robot, computer program or automated script to maliciously click on ads and register them.

How to Deal with These Frauds

As mentioned above, programmatic advertising campaigns are on all-time high, but as too many individuals fall in between there is lack of clarity within the online ad purchasing process. Therefore, we need to look for a solution. Yes, you guessed it right, the most talked about technology, Blockchain will prove to be a savior.

With the use of distributed ledger, advertisers will be able to keep a check on every ad or impression they spend on and that they pay for the true ones only.

ClearCoin (CLR)

A solution offered by a startup from the US. ClearCoin  has formed an Ethereum-based system with a history-proof ledger for originators. In this ledger each transaction is added as a new information, and advertisers can keep a watch on their partners to see if bidding is done via rules.

Already more than 10,000 registrations have been made on this platform and it has joined big publishing networks.

Aim of ClearCoin

The team behind ClearCoin aims to develop a technology that will help to track over 100,000 impressions per second. At present ClearCoin is running an ICO to raise funds and $4 million are already collected.

It is seen as the future of online advertising where using ClearCoin platform a clear and transparent advertising system can be created.  It aims to bring all the parties using blockchain tech and an open API together to support popular ad formats such as Mobile, Audio, Video, Social, Television and Display, Content.

With ClearCoin there will be complete transparency on how things work.

As, ClearCoin (CLR) tokens help distributed ledger to improve the supply chain it is said to raise efficiencies and reduce the annual ad fraud reported by various agencies.

A Solution for Following Segments:

  • Marketers


Will help to circulate a message to the world that marketers want them to know.

  • Brands


Will provide transparent platform to brands that want to build a relationship with their customer.

  • Agencies


A transparent, secure solution platform that uses modern technology.

  • Ad Networks

Ad Networks

A company that connects advertisers to websites who want to host advertisements.

  • Publishers


One who gets money for showing the ads on his website.

  • Publisher Networks

Publisher Networks

Networks that total supply.

  • Demand Side Platforms

Demand Side Platforms

Products that provide advertisers features for buying ad placements online in real time.

  • Supply Side Platforms

Supply Side Platforms

Help publishers sell digital ad impressions in automated auctions.

Technology used in ClearCoin

The ClearCoin technology is made up of five elements:

1. Blockchain Media Buys: Any media buy that the company makes will be followed as proof-of-history ledger tracking technology will in use. The ad platform will allow CLR token holders to execute ad buys.

This buying will be done in three steps: Media Planning, Media Buying, and Tracking & Analytics.

2. Supply API:

ClearCoin will partner with decentralized and other applications that wish to be a part if new advertising system. Plus, partnership will be done with any source of supply that can be tracked on proof-of-ledger.

For this, the supply API will be designed in a manner that will aid supply partners to get access to the buyers.

3. Demand API for Partners:

Demand in advertising industry comes in various form. It can come from an agency, a trading desk, demand side platform, direct from the brand and other sources.

The ClearCoin demand API for partners helps to work and manage services directly using the user interface.

4. Blockchain Ad Protocol:

This protocol will be used for tracking ad and will use a ledger based on blockchain. This, will help to helping to fight fake and inaccurate clicks and will give greater clarity.

5. Proof-of-History Ledger:

In years to come Clear Coin’s proof-of-History ledger will set a standard for advertising. It will use a ledger to records all online advertising impressions that can be accessible. But all the data will be encrypted to secure user privacy. Also, it will make separation of fraud ads from real ones easy.

The proof-of-history will serve as the founding level to ClearCoin’s total advertising solution.

Wrap Up:

ClearCoin technology is built on top of Blockchain and will help deal with online frauds   thein the advertising industry. The proof-of-history ledger will help to cut down on click/ad frauds and inaccuracies. To transact on the platform individuals will have to use ClearCoin token that is built on Ethereum Blockchain, while ClearCoin inventory tracking Blockchain is built on Hyperledger. ClearCoin (CLR) is the only token issued by ClearCoin.

ClearCoin will restrain the use of false ways to earn profits. Blockchain provides an ecosystem for both publishers and consumers and removes the middleman to establish transparency and trust by implementing a central and secure way to record, review and execute deals. This helps publisher to take control of things and blacklist frauds to restore the trust and transparency when needed most.

What is expected to the change the face of the advertising industry  will take some time to be implemented.

Next Read: Is Cryptocurrency Killing Blockchain Technology?

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