ASSESSMENT 1 –

BLOCKCHAIN SOLUTION
Company MadHive
By Nguyen Thuy Anh Phuong
46121269
Lecturer : Ali Amrollahi
Tutor : Nader
Wednesday 6pm
Table of Contents

1. THE CONTEXT OF MADHIVE COMPANY....................................................................................2

2. BUSINESS PROBLEM.................................................................................................................2

3. MADHIVE BLOCKCHAIN SOLUTION WORKS..............................................................................3

4. THE BENEFITS OF USING THE SPECIFIC BLOCKCHAIN SOLUTION...............................................4

5. THE LIMITATIONS OF USING MAD NETWORK..........................................................................4

6. CONCLUSION............................................................................................................................4
1. The context of MadHive company

MadHive is a private company founded in 2016, its main office located in New
York and the Co-Founder is Adam Helfgott. Until now, this company have a
total of 80 employees and five investors. (Book, 2021). MadHive is The
blockchain ad-tech firm of engineers, data scientists, and marketers who
developed the MadNetwork protocol. The benefits of using this MadNetwork
protocol are efficient, accurate and private ad serving. MadHive has created a
platform where the standard ad-tech intermediaries become unnecessary;
advertisers can also target the customers more effectively without accessing
their personal information. As consumer privacy regulations become more
stringent in advertising markets, MadNetwork's technology represents a
significant step forward, allowing marketers and publishers to reach their
target audiences while maintaining complete consumer privacy. In Sum,
precision targeting, audience verification, the first OTT-first device graph, and
cross-device attribution are all part of the company's package, which allows
key participants in the advertising business to solve the industry's top
problems, such as trust, transparency, fraud, and brand safety. (Book, 2021)

2. Business Problem

Nowadays, the modern digital advertising industry is facing several problems,

such as: Middleman, convoluted and proprietary ad placement platforms.
Therefore, the MadHive company’s mission is here to address these
challenges by their blockchain technology.

 Middlemen

Maintaining unneeded middlemen lead to increasing the yield to bogus traffic

providers, which fuels criminal activities, resulting in a loss of trust in the
sector. Additionally, it can also lead to high verification expenses and
operational costs. According to the website Adnews.com.au, they reported
that the programmatic ad tech fees are high - typically close to 50% or more.
(Chambers, 2021). Another important issue of Middlemen is transparency.
Lacking of this factor in the tracking of first-party data is a key source of
concern for publishers, whose confidential information is at risk of being
stolen, resold, or misused by unscrupulous actors farther down the convoluted
ad-buy supply chain.

 Convoluted and proprietary ad placement platf orms.

 As written above, lacking of transparency has led to a variety of issues.
Therefore, this has resulted in the creation of "walled gardens" to preserve
data. However, this new method only combined with insufficient technical
infrastructure which drastically restrict data flow between publishers, brands,
and agencies. In the end, these inefficiencies can lead to low return on ad
dollars for publishers, a costly and continuous security problem for companies
and agencies, and less effective audience targeting for brands and agencies.
(2021). For example, The Guardian, a major British newspaper that issuing an
advertising technology company over claims that the company's proprietary
ad placement service imposed "secret commissions" on the publisher and
obscured information that would have helped the newspaper secure a more
equitable share of profits from advertisers. (2021)

3. MadHive blockchain Solution works

MadHive is building an ad tech network called the MAD Network using blockchain
technology and smart contracts. The MAD Network will decrease the influence of
intermediaries in ad tech and bring buyers and sellers closer. Simultaneously, the MAD
Network aims to reintroduce transparency to the ad tech industry by storing information on
the blockchain, encrypting it, and making it accessible to advertisers with the necessary
permissions, the MAD Network avoids fraud and enables advertisers to track their money's
precise whereabouts. Additionally, publishers may sell data through the blockchain to assist
advertisers in better understanding consumer behavior and planning ad campaigns.
Mad Network is using distributed ledger,therefore, participants need the privacy of
transactions. At the same time, we must ensure that transactions are authenticated. Below is
how the distributed ledger is operating

A blockchain is composed of data blocks. These data blocks are stored on nodes. Nodes can
be any type of device. All nodes on a blockchain are connected to one another and constantly
exchange the most up-to-date blockchain data, ensuring that all nodes remain current. They
store, distribute, and maintain blockchain data, which theoretically means that a blockchain
exists on nodes. A full node is essentially a device) that stores a complete copy of the
blockchain's transaction history.

4. The benefits of using the specific blockchain solution

MAD network is a distributed ledger technology-based payment system. MAD network,

on the other hand, does more than facilitate transactions. Due to the fact that it is based on the
blockchain, it enables decentralized, transparency and disintermediation. For decentralized ,
The MAD network is not controlled by a single entity. Decentralized miners ensure that
advertisements are served continuously, preventing a single point of failure. For transparency,
MAD Network is completely open and accessible to all parties. It provides each entity with
confidence in the MAD network's data's veracity. Lastly, with disintermediation, The MAD
ecosystem can eliminate the intricacies of today's programmatic advertising system.
Participants in the network can transact without the use of intermediaries. (2021)

5. The limitations of using Mad Network

As Mad Network is a decentralized application which is frequently built on the

Ethereum platform. Besides of their advantages, there are also a several disadvantages of
using this application. The ecosystems for launching DAPPs all had one thing in common: a
lack of scalability and an increase in fees. This is particularly serious in the case of Bitcoin,
as the cryptocurrency's developers imposed a 1-megabyte limit on the size of a single block.
And, as time passes, the process of creating each new block becomes increasingly time-
consuming and costly. Additionally, security risk is the possibility of "51 percent Attacks," in
which a single person or organization controls more than 51% of the hash rate, allowing for
the modification or deletion of transactions. Another issue with decentralized platforms is
incompatibility with decentralized exchanges (DEXs). (Khan, 2021)

6. Conclusion

Nowadays, as consumer privacy regulations become more stringent in advertising

markets, MadHive has created a solution of using Mad Network to solve these issues by
allowing marketers and publishers to reach their target audiences while maintaining
complete consumer privacy. However, besides the advantages that Madhive is
distributing to the society, there are still some disadvantages that the Mad Network is still
facing such as lack of scalability and increase in fees.
 References
Chambers, P., 2021. The “ad tech tax” - how the programmatic middlemen are
raking it in - AdNews. [online] Adnews.com.au. Available at:
<https://www.adnews.com.au/news/the-ad-tech-tax-how-the-programmatic-
middlemen-are-raking-it-in> [Accessed 15 September 2021].

Book, P., 2021. MadHive Company Profile: Valuation & Investors | PitchBook.

[online] Pitchbook.com. Available at:
<https://pitchbook.com/profiles/company/222166-18#board> [Accessed 15
September 2021].

2021. [online] Available at: <https://icodrops.com/mad-network/> [Accessed 15

September 2021].

2021. [online] Available at: <https://www.nasdaq.com/articles/how-blockchain-

technology-disintermediating-ad-tech-2017-10-31> [Accessed 15 September 2021].

SearchSecurity. 2021. What is Encryption and How Does it Work?. [online] Available

at: <https://searchsecurity.techtarget.com/definition/encryption> [Accessed 15
September 2021].

Khan, S., 2021. What is a DAPP: advantages and disadvantages of decentralized

applications. [online] Cryptodaily.co.uk. Available at:
<https://www.cryptodaily.co.uk/2020/05/dapp-advantages-decentralised-apps>
[Accessed 15 September 2021].