How the OAP works

Web3 technologies have reached a maturity point that will allow many parts of the digital product distribution stack to be accessed in a decentralized manner. Layer 2 blockchains, zero knowledge proofs, decentralized file storage and data retrieval are all ready to support this move.

To begin, we must first understand the three sides of the digital product distribution equation. Supply (Publishers), Demand (Advertisers), and End-Users (Customers). In our explanation we will speak in the context of web3 game developers as publishers because this is Nectar's target vertical. Each side has unique needs that need to be addressed and then tied together to complete the ecosystem.

• Publishers are the content creators and owners of digital platforms where advertisements can be displayed. In Nectar's case, this is in-game and in the marketplaces of web3 games. Needs: lightweight SDK, appealing ads, high value to users.

• Advertisers are web3 growth marketers looking to promote their products or services. Needs: demographic targeting, creative hosting, optimization analytics.

• Customers are the end-users that are playing a web3 game and want to interact with an ad to receive a reward in their game. Their needs are engaging incentives provided by the publisher, advertiser, and in web3's case, anyone building on top of the Open Ads Protocol.

All this requires a significant infrastructure which can be decentralized. By allowing builders to make tools on top of an open protocol, a completely decentralized advertising ecosystem can be created to drive value from the current centralized systems directly to the publishers.

Here is a high level diagram:

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The OAP consists of a series of smart contracts that will feed oracles that distribute data to any party that requests it via the OAP token. Besides the main OAP contract, the categories of smart contracts are publisher, advertiser, and data which will determine it's function.

The main OAP smart contract will be to initialize access to the OAP ecoystem and allow developers to start reading and writing data.

Publisher smart contracts will contain logic that finalizes and awards end user rewards and payments.

Advertiser contracts will allow access to the publisher ecosystem and the any layer of main contract data the builder has access to.