Skip to main content

Fundamentals

What is Alkimi Exchange?
Alkimi Ad Exchange is a decentralised advertising exchange built on Constellation Network's HyperGraph. It matches advertisers (who want to display their ads) to publishers (who have people viewing content on their websites/apps, etc.) and allows them to transact in real time. This is how 95% of the $500 Billion digital advertising market is traded. Alkimi Ad Exchange is compatible with industry standards, such as Open RTB, allowing advertisers and publishers can easily switch to it. Alkimi also provides greater transparency and much lower fees. Typically, 49% of the money spent on an ad goes to intermediaries, not the publisher. In the case of Alkimi, the fees are 1.5%, which is made possible by the power of Constellation's HyperGraph Network. Further, these fees are paid in $ADS tokens. Advertisers can buy and stake $ADS tokens to lower their fees. This also allows token holders to stake the token and receive a percentage of the fees paid by the advertisers. Advertisers also need the $ADS tokens to access the features offered by Alkimi Ad Exchange. This need for the token and the ability to lock up the tokens in a staking pool in exchange for rewards drives the demand and hence the price. This video is a quick explainer: link

Also, see these longer explainers:

ALKIMI ($ADS) EXPLAINED // BY ANDREW SEER

Get In Early On Gains. (This Crypto Revolutionizes Advertising)

What are Alkimi's USPs?

Alkimi Ad Exchange is the first digital advertising exchange where an immutable record of all media serving and engagements will be recorded on a blockchain. This will usher in accountability for the new digital advertising paradigm.

What is the opportunity for Alkimi?

The Internet's first advert was served in 1994; it's now a multi-billion dollar industry. In 2020, online advertising surpassed $340bn and accounted for over 50% of all media spend globally. The exponential growth of digital advertising was fueled by rapid innovation. As a result, the industry has become highly fragmented and dominated by Facebook and Google, whose 'walled gardens' have claimed a 53.3% share of all digital advertising spend (worth around $181.5bn). Further, out of every $1 spent by the Advertiser, the Publisher receives approximately 50c (i.e. a 50% drop due to the supply chain), of which a third of the costs are untraceable. The advertising industry has been screaming for a change and a resolution to these problems.

Why is Alkimi building an Ad Exchange on the Blockchain?

Similarly to DeFi, the digital advertising ecosystem stands to gain significant operational and financial performance for all involved parties by adopting liquidity pools, decentralised node operation and edge computing. A decentralised ad exchange would gain an immediate competitive advantage against centralised ad exchanges - the top six generate c.$5bn of revenue per annum.

See Alkimi CEO Ben Putley explain how a decentralised exchange works - link

Which problems is Alkimi Exchange solving?

Alkimi Ad Exchange aims to fix multiple problems that plague today's ad industry. The most important issues that Alkimi Ad Exchange aims to resolve are:

  1. Lack of transparency and auditability
  2. High transaction fees
  3. Ad frauds
What is Alkimi Exchange's position on data transparency and auditability?

Many existing exchanges refuse to offer log-level data to clients, citing the cost implications of surfacing the data. There have been multiple instances of exchanges front-running their clients. Alkimi Ad Exchange stores an immutable record of all media serving transactions on a blockchain. Further, these transactions are passed through 'custom consensus', a unique feature offered by the HyperGraph. This allows any data captured on the blockchain to undergo a custom validation process. Alkimi uses this process to assure the advertisers that their ad was seen by the user on the intended publisher's page. The publisher is also assured that the impression is monetised at the price paid by the advertiser. These data sets are made available to advertisers and publishers, allowing them to refine their trading strategies in real time. Further, on-chain data is supported by raw data logs stored off the chain. Alkimi provides a way to correlate off-chain and on-chain data. This ensures complete transparency and auditability currently missing from traditional ad exchanges.

How does Alkimi Exchange offer 1.5% fees?

In the United Kingdom, 49% of revenue from programmatic transactions goes towards ad-tech fees, resulting in ineffective campaigns and publishers seeing declining revenues. Alkimi Ad Exchange leverages Constellation Network's HyperGraph, a feeless network. Using the HyperGraph, Alkimi can offer cost-effectiveness and charge significantly lower fees compared to other legacy ad exchanges. These reduced transaction fees ensure that our customers become more profitable.

How will Alkimi Exchange handle Ad Fraud?

Ad fraud was estimated to have cost $68 Billion and $81 Billion (20% of global digital ad spend) in 2020. Using Constellation's state channel framework, Alkimi Ad Exchange defines various data types to identify and restrict fraudulent actors from entering the exchange or easily find and exclude bad actors. Alkimi Ad Exchange utilizes current industry-wide standards and uses HyperGraph's Proof of Reputable Observation (PRO) consensus mechanism to build a real-time view of every market participant. This gives our customers a real-time fraud prevention tool.

Why does Alkimi Exchange appeal to publishers? (apps/websites who sell ads)?

In today's advertising world, advertisers care more about reaching their target audience rather than ensuring that the advertised product matches the type of content displayed on the publisher's site. This devalues the content that is presented on the site. Further, publishers are passed on a heavily reduced price after paying off all the intermediaries who made the ad rendering possible. From a publisher's perspective, it is essential to ensure that the ads shown on their site match the content provided on the site and get the right value for hosting the ad on the site. Alkimi Ad Exchange ensures that the value of each ad shown to the user on the publisher's site is increased by reducing the fees. This ensures that the publishers get better value for their ad space and are able to meet their revenue targets by displaying a reduced number of ads on their site. Further, Alkimi ensures that the ads shown on the site are matched to the site's context, providing a cleaner and better browsing experience to users who visit the site.

How are Advertisers benefiting from Alkimi Exchange?

Traditionally, over 50% of an advertiser's ad spend goes towards paying the intermediaries. Further, around 15% of the supply chain costs are untraceable due to a lack of transparent, auditable data. Alkimi Ad Exchange resolves both of these issues. Firstly, the fees associated with Alkimi are significantly lower than those of traditional ad exchanges. This ensures that the advertisers have to pay considerably lower to provide the same revenue for the publishers. This would, in turn, result in a lower number of ads shown to the user and a better viewability experience, which will reflect positively on the advertiser whose ads are being displayed to the user. Secondly, the advertiser is provided access to transparent, auditable data that can be used to refine their bidding strategies, reach more relevant users and reduce their ad spend.

How will users benefit from Alkimi Exchange?

By using Alkimi Ad Exchange to render ads on their sites, the publishers can significantly reduce the number of ads that need to be displayed on their sites to meet their revenue targets. This is a consequence of Alkimi's reduced fees. Any cost that would have been passed on to intermediaries is now passed on to the publisher, which can be used to better the viewability experience for the users. This also ensures that the users can enjoy the site content with much lower distractions. Users can further benefit by buying and staking $ADS tokens. By doing this, they can lend their $ADS tokens to advertisers. In return, they are paid a part of the fees paid by the advertisers to display their ads to the consumers. As the number of transactions on the Alkimi Ad Exchange increases, this will be significant as the demand for the token increases.

Who are the Alkimi Team?

Ben Putley, Adam Chorley and Chandru Narayana.

For more details, read the whitepaper on the website - link - and check out the core team's bios. They're very doxable on LinkedIn with great experience in the industry and big connections.

Has Alkimi been audited?

Hereā€™s the pre-launch audit: link Please note that the project will move to Constellationā€™s L_0 token at some point, so the ERC20 token is not a long term solution. You can check the roadmap in the whitepaper or the token primer to see the development dates. These will include code audits.

How can I see historical $ADS pricing/charts?

Check out DexTools: link for data since ADS began trading in August, 2020.

Where can I buy $ADS tokens?

$ADS is available on four exchanges

  • GATE.IO as ADS-USDT: Link1 Fees are 0.2% of transaction with an exit fee of ~60 ADS.
  • KUCOIN as ADS-USDT and ADS-BTC: Link2 Fees are 0.1% of transaction with an exit fee of ~60 ADS.
  • UNISWAP v2 as an ADS-ETH pairing: Link3 Fees are 0.3% of transaction and ETH gas as per standard Uniswap.
  • MEXC as an ADS-USDT pair: Link4 Fees are 0.2% with an exit fee of 100 ADS.