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 product developers as publishers because this is OAP's go-to-market 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. Needs: lightweight SDK, appealing ads, high value to users.
Advertisers are growth marketers looking to promote their products or services. Needs: demographic targeting, creative hosting, optimization analytics.
Customers are the end-users that are using a digital product and want to interact with an ad. Their needs are an engaging incentive provided by the publisher and advertiser that meets a current need or interest.
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.
The Open Ads Protocol forms the backbone of a new approach to online advertising. By harnessing the power of blockchain technology, OAP aspires to create an ecosystem where transparency, efficiency, and decentralization are the norms, not the exceptions.
OAP introduces a decentralized approach to digital ads, putting power back into the hands of the users and the advertisers, and eliminating the need for intermediaries. The key lies in the trustless nature of blockchain technology, enabling advertisers and publishers to interact directly in a secure, transparent, and efficient manner.
The OAP token streamlines the process of transacting within the platform, being used for ad space bidding and payments. This creates a simplified and unified system, reducing the complexity typically associated with advertising payment models.
Built atop this protocol is Nectar, our proof-of-concept front-end application. Nectar exemplifies the practical implementation of OAP, providing a user-friendly interface that allows users, advertisers, and publishers to interact with the OAP ecosystem.