XCHNG: Digital Advertising on Blockchain
Kochava is introducing the XCHNG Platform to equip the digital advertising ecosystem with an open and unified blockchain framework
Director XCHNG; Founder/CEO Kochava
Charles Manning is the founder and CEO of Kochava Inc., the leading mobile attribution and analytics platform serving tier-one advertisers worldwide. For nearly 20 years Charles has been creating technologies that use data for system optimization, ranging from business service management (BSM) to information technology (IT) to attribution analytics, and most recently blockchain. Charles began his career at Oracle, and later held executive and C-Level positions at M-Code, Managed Objects, and PLAYXPERT.
Prior to founding Kochava, Charles founded PLAYXPERT–which started as a gaming technology platform. After licensing the PLAYXPERT technology to Razer, Charles built a team that focused its time on building engagement platforms for entrepreneurs and agencies.
Upon realizing the need for a standard platform for effective attribution or post-install analytics in mobile–Charles and his team built one, and Kochava was born. The Kochava technology is now integrated with more than 3,500 networks and publishers and is trusted by hundreds of brands including the biggest names in mobile gaming, news and media, and consumer goods.
SVP Blockchain XCHNG
Breaux Walker is an international blockchain and tokenization business development leader. As SVP Blockchain at Kochava, Breaux is responsible for business development of the Kochava-sponsored open source blockchain project, XCHNG. Previously, Breaux was the SVP, International for Union Mobile Fintech, a publicly-listed Chinese fintech company. Prior to joining UMF, he was a partner at Kuan Capital, where he invested in fintech, mobile, and Internet companies in China.
Breaux has 10+ years of investment banking experience and was a managing director with JMP Securities’ investment banking group. He oversaw the China investment banking team and managed the company’s joint venture with China Merchants Securities. Throughout his career, Breaux has been an entrepreneur and banker in the mobile and Internet sectors in the US and China, closing over $1B in transactions. He is fluent in written and spoken Mandarin Chinese.
Blockchain Architect XCHNG
Ethan is the primary architect of the XCHNG framework. He holds a master’s degree in CS from Wright State University and previously held the position of Lead Build/Automation Engineer with IBM’s B2B Cloud Services Division writing software and training new team members. Ethan has worked in VR and AR, and developed Sense and Avoid projects for unmanned aircraft systems as well as designed and developed proof-of-concept and integration test systems for internal applications, always with a focus on optimization for speed and efficacy. Skilled in Golang, Java, Python, C++, and many other languages and technologies, Ethan has a particular passion for and experience with blockchain and distributed ledger technologies.
Director XCHNG; CFO Kochava
Doug Lieuallen has served as a financial executive for 25 years, with experience ranging from start-ups to public entities, across technology, advertising, and retail industries. As the CFO of Kochava, Doug plays a strategic role in the overall management of the organization. Primary responsibilities include accounting, FP&A, treasury, M&A, legal, and administrative functions.
Prior to his appointment to Kochava, Doug held multiple finance and accounting leadership roles, most recently as the Senior Director of Treasury Operations at the $700 million retailer, Coldwater Creek, and previously as the Finance Director for Wieden + Kennedy London. Throughout his career, Doug has been tasked with creating and funding scalable, global operations.
As a Director of Kochava Labs, he provides oversight and expertise for the Kochavasponsored open source blockchain project, XCHNG.
Brand Director XCHNG
Kimberly has a long history of marketing experience specializing in brand creation and management. She is the brand director at Kochava Inc. and formerly was founder and principal of an independent design firm for twelve years, providing branding, marketing, and content creation to tech, biotech, consumer product and non-profit clients.
Kimberly has a particular passion around blockchain and how to make distributed ledger technologies accessible and understandable to a broader audience.
Global CEO at Modern Marketing Summit
CEO at Matcherino Former CEO Servicemesh, Former President ZAM Network
CEO. Advisor. Founder.
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What is XCHNG?
The Digital Advertising Blockchain. XCHNG is an open and unified blockchain-based framework for the digital advertising ecosystem. Designed and deployed by Kochava Labs SEZC (or simply, “Kochava”), a research and development subsidiary of Kochava Inc., the XCHNG framework is centered around a common Ricardian Smart Contract with an open blockchain implementation to persist transactional history and provide supporting utilities required for maximizing efficiency through the lifecycle of the IO. XCHNG establishes a common set of rails available to the entire advertising community to buy, sell, measure, rate, and pay for digital media.
What is the XCHNG core value proposition?
Reduce Intermediaries, increase efficiency and transparency. XCHNG dramatically reduces the need for third party intermediation in digital advertising and unifies all transactions related to digital ads on a common ledger. Whether advertisers, publishers, or other industry players, all parties stand to benefit from a more transparent, efficient marketplace using a common ledger with permissioned access. Advertisers in particular, frustrated with today’s cumbersome and wasteful system, are demanding that the industry move in this direction. XCHNG secures and standardizes the process of buying and selling digital advertising through decentralization, removing reliance upon central intermediaries. The system is protocol based and is by definition is designed to be trustworthy as it enables party-to-counterparty interaction. It facilitates the workflow of buying and selling ads through a smart contract IO, enables the related targeting and activation of audiences, and bolsters ad-spend efficiency and security. It will usher in a next-generation advertising system of record for all participants, and it will create an opportunity to tokenize the framework to treat digital ads as a true asset class.
What is Kochava?
Global Leader in Digital Advertising Measurement & Attribution. Founded in 2011, Kochava Inc. is the leader in digital advertising measurement and attribution. Today, Kochava Inc. provides measurement for over $6 billion in ad spend annually, for major enterprise brands across industry verticals. The company is independent and already has all the touchpoints of supply and demand throughout the ecosystem. Kochava Inc. also has the largest independent data marketplace in the Kochava Collective, on a scale comparable with the biggest players in the field. Finally, while XCHNG is architected as an open framework for third-party verification, Kochava Inc. is uniquely positioned to offer the industry-leading measurement right out of the box.
What is the relationship between XCHNG and Kochava?
Created for Independence. XCHNG is an independent framework designed and deployed by Kochava Labs SEZC (or simply, “Kochava”), a research and development subsidiary of Kochava Inc. XCHNG is an open source project which will ultimately have contributions from many XCHNG partners. Similar to other members of the digital advertising community, Kochava Inc. is contributing leadership, development expertise, and data to XCHNG.
Why native blockchain for digital advertising?
Transparency & Efficiency. Blockchain technology promises to increase transparency and efficiency in the digital advertising market. Because it is, by definition, a peer-to-peer technology, the need for multiple third parties is greatly decreased. Blockchain is more than just a distributed ledger, however.
Recognizing that no existing production blockchain can handle the transaction volumes required in advertising, Kochava built XCHNG on a ground-up blockchain that is a next-generation consensus engine, p2p engine, and smart contract framework – coupled with a multi-dimensional ledger framework (side-chain support) which enables fast consensus and record level recording of transactions at a scale required for advertising. By delivering this innovation, the ad industry can leverage a common ledger, frame all actors around insertion orders that are based on the smart contracts of XCHNG, and use the protocols provided within XCHNG for demand discovery, supply discovery, IO auction support, and agreement to mutual terms for the IO.
Speed (TPS/QPS) of XCHNG
The live demo of XCHNG showed speeds of 180,000 transactions per second per IO. Because customers can have unlimited IOs, and XCHNG offers unlimited side chains as needed, the team demonstrated that XCHNG can handle millions of transactions per second globally. This is well beyond today’s transaction volume requirements within digital advertising and has been received well by leading advertisers and suppliers alike.
How will XCHNG ensure transparency and efficiency for all its participants?
The Smart Contract IO. Blockchain is, first and foremost, a technology of trust and transparency. It is for this reason that it is being applied to so many different industries, disrupting the status quo and decentralizing processes so that all participants are on an even playing field and can trust the related transactions. One of the major concerns in digital advertising is the lack of consistency and reliability of the Insertion Order process. Blockchain-based smart contracts significantly improve the efficiency and reliability of buying and selling ads. The XCHNG framework is open source and offers opportunity for third-party verification and unprecedented transparency, something that is very lacking in the current advertising ecosystem.
What does XCHNG mean to me or my business?
Buyers or advertisers (also referred to as marketers), purchase media for the purpose of digitally advertising their apps, games, services, ideas, web sites or products.
A publisher (company or individual) is an entity who has a published website or app where it displays advertisements to its audience. These ads typically are provided by an advertiser in order to promote its products, services, or apps to the publisher’s audience. The publisher provides a certain number of ad units within which the ad is displayed (banner, video, interstitial, content, or some other unique unit type). For the purpose of this white paper, we refer to an ad unit as an ad slot. A web page or app may have one or more portions corresponding to ad slots for displaying ads of various formats.
To support the scale of exposure required for a typical ad campaign (also called an “ad buy”), an advertiser is likely to engage with more than one publisher to achieve its campaign objective (i.e., access to enough ad slots). The advertiser may also engage with any number of ad networks (also called supply-side providers or SSPs) who aggregate ad slots from multiple publishers in order to provide the advertiser with greater scale to buy ad slots across a broader audience base. In a similar manner, a publisher with more than one ad slot may engage with more than one advertiser to all its ad slots. Conversely, a publisher may engage with an advertiser aggregator (also called a demand-side provider or DSP) who aggregates advertisements from multiple advertisers to all available ad slots. Furthermore, SSPs also interact with DSPs to provide even greater economies of scale. This system of aggregation is entirely centralized today.
What advantages does a Smart Contract Insertion Order have over a traditional Insertion Order?
- Identification and pre-verification of inventory being bought, sold, or traded with associated targeting capabilities against an open blockchain framework
- Identification and pre-verification of the Buyer and Seller of the media with unique keys
- Embedded and programmable terms for the agreement that address tra c and brand safety verification, targeting (from 1, above), allowance of re-brokering, flight times, payment approach: CPM (Cost per Mille—impression-based pricing), CPC (Cost per Click), CPI (Cost per Install), CPX/CPA (Cost per Action) and other details for the digital ad buy; General Data Protection Regulation (GDPR) compliance
- Identification of the associated ecosystem partner to be used for the purpose of measuring performance of IO terms (called the Measurement Provider)
- Identification of the optionally associated ecosystem partner to be used as the Ratings Provider
- Identification of the optionally associated ecosystem partner to be used as the Payment Provider (For clarity, Kochava will not serve in this capacity on XCHNG).
- Identification of the optionally associated ecosystem partner to be used as the Arbitration Service in the event there is disagreement between the buyer, seller or Measurement Provider upon delivery