Parsec Media to Tokenize Advertisement Contracts via AFOX Platform on R3 Corda Blockchain
Parsec Media, a software company primarily used for cloud-based gaming, is launching the AFOX on the R3 Corda blockchain to provide a solution to the unpredictability of the advertising market.
Looking back at the 50s and 60s, advertising was mostly done through radio and saw a revamp as it gradually turned to print and visualization. Ads across newspapers, posters and TV’s was the norm until the internet changed everything.
In the new millennium, especially after the spread of smartphones, ads are mostly viewed on the internet – social media playing king. The industry has turned into a volatile arena hence the presence of futures and contracts on advertisements and media products. Parsec, an advertising firm, is utilizing the enterprise-based R3 Corda blockchain to settle digital advertising contracts and trade futures and options in the advertising market.
The Unpredictability in Advertisement Industry
In a statement to the press, Parsec highlighted the current problems facing the advertising world saying,
“Current media contracts don’t enforce quality standards, so buyers demand favorable cancellation terms. Since contracts are cancellable, a publisher’s business is unpredictable.”
The unpredictability of the media companies’ jobs causes volatility in the ad companies’ revenues and financial structures as pointed out by Charlie Fiordalis, managing partner of MediaCom. Charlie says that contracts in the advertisement industry can sometimes take days to be constructed and even months to reconcile only for them to be pulled to a stop barely 48 hours after completion.
While this is a common feat to most of the ads set to air on media platforms, ads at the Superbowl – probably the best period in the year in the ad market – are non-cancellable. The event provides assurance of value for the company buying it and “per second” value is easily measurable. Parsec wants to launch a solution that will be non-cancellable and easily measure the attention value.
The AFOX Solution
Parsec provides a solution to the unpredictability and volatility risks encountered in the advertisement industry through the Advertising Futures and Options Exchange (AFOX) platform. The AFOX platform utilizes a complex algorithm to measure the value of one second of attention to an advertisement. The data is then analyzed and stored on the blockchain providing immutable storage shared over a distributed network.
The platform is set to tokenize futures and options contracts stored on the blockchain allowing investors in the secondary market to get a hold of the advertisements. While providing additional liquidity to the media firms through capital raised in these secondary markets, AFOX will also provide hedging and discounts on their adverts purchases.
Despite the continued efforts in putting up the AFOX platform and promoting the sale of futures and options on a blockchain, Parsec does not intend on staying in the field for long. The CEO Marc Guldimann said he hopes the future of advertising futures and options is totally decentralized cutting off middlemen such as the Parsec Media Company.
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