Russian developers have designed a decentralized platform for affiliate marketing.

Blockchain technology allows you to reduce costs on advertisement and to avoid fraud both from advertisers and ad exchanges. HOQU, a blockchain platform for affiliate marketing, will be presented by Russian developers during London FinTech conference. Earlier the platform was presented at the events such as IBCG and Cryptodealers in Kiev and at the online marketing conference CpaConf 2017 in Moscow.

The developers of the blockchain platform are the founders of the Marketcall project (CPA network that pays for a targeted calls), one of them is Roman Kaufman – the co-founder, blockchain enthusiast and creator of the IBCG blockchain community. This project has already raised more than 1000 ETH from investors in terms of private offer. The HOQU platform uses the smart contracts to monitor the actions of online advertising market participants.

For instance, the unfair advertiser may not to inform the partner that with his or her help the client was attracted or deliberately not to pick up the phone when the customer calls and then call him back. Also the fraud schemes can be used by webmasters. They can increase the amount of supposedly attracted customers using fake clients who leaves deliberately the false orders. Now existing advertising sites try to improve the algorithm of their work, but they still work on an outdated principle. They receive a payment from the ad’s impressions but not from client’s actions. Maxim Anikeev, a cofounder of HOQU, declared:

“We see a trend that the payment for intermediate actions becomes the relic of the past due to inefficiencies. As banner displays or website transitions do not always lead to a sale. Because of the complexity of marketing tools advertisers have to keep a staff of marketers who carries about the beautiful reports but not about the real effectiveness of advertisement budgets”.

The HOQU blockchain platform will be able to identify users remotely using the Civic blockchain service. Moreover the platform will allow advertisers to analyze the advertising campaigns and to evaluate their effectiveness comparing all affiliate programs. This data will be stored in the blockchain and cannot be changed. The platform will fight fraud by dint of machine learning, neural networks and rating system of all platform participants which is formed based on the history of their actions. Advertisers will be able to set the terms of payment using a smart contract.

For instance, it will be possible to pay for the advertisement only in the case of a confirmed sale (cost per sale). Thus, until the sale is carried out, the advertiser will not spend money from the advertising budget. The HOQU fee per one transaction will be only 0,5%, while the average CPA-networks fee in field of e-commerce varies from 15% to 25%. Furthermore, in contradistinction to centralized affiliate programs which charge a subscription fee for services the HOQU blockchain platform will charge only the fee for payments made.

The first CPA-grid on the HOQU platform will be the first project of Marketcall, which has already established itself as a successful advertising market participant.