Parsec, an advertising company, has unveiled a pilot program offering options and futures transactions and settlement of digital advertising contracts on R3's Corda blockchain.
MediaCom, the buyer of digital advertising contracts, and Future US, the company behind ten industry publications such as PC Accelerator, Guitar World and TechRadar, are the first participants in the platform. The companies announced the first futures contracts that are traded without the intermediation of a third party, Parsec.
The Advertising Futures and Options Exchange (AFOX) platform uses a guaranteed quality metric measured within one second of full advertising attention and encodes these "impressions" in the block chain.
Parsec aims to limit contract cancellation by allowing shoppers to track who saw the ad, "see where it took place and how it was optimized by variable browsers", said Fiordalis, thus eliminating the need to "exit" from an unfulfilled contract.
In fact, AFOX plans to tokenize these blockchain-supported media contracts and make them available in the aftermarket as futures contracts for media and options. Futures contracts enable companies to protect themselves against price impacts and potential advertising purchases in advance with a 40 to 50 percent discount.
A second order of financial effects of contracts can increase market liquidity as media companies can bet against guaranteed advertising revenues.
