BitAds Whitepaper

BitAds introduces a revolutionary approach to online marketing through a decentralized network built on Bittensor (Subnet 16). Aiming to disrupt the traditional marketing industry, BitAds offers a solution that significantly reduces costs for clients while incentivizing miners to promote and bring sales to marketing campaigns. This whitepaper outlines the BitAds project, including its integration with the Bittensor network, the incentive mechanism for miners, the technology architecture, and the advantages it offers over existing advertising methods.

The digital marketing and advertising market, valued at US$913 billion in 2024, is ripe for innovation. BitAds proposes a decentralized marketing network that leverages the Bittensor network to offer unparalleled marketing power at a fraction of current costs.

In 2024, advertisers are projected to lose over $100 billion due to ad fraud and ineffective strategies. Traditional advertising models, like pay-per-click or pay-per-impression, often fail to deliver real value, leading to wasted budgets and diminished trust. Fake clicks and bot traffic inflate engagement metrics but don't translate to real sales.

The rise of AI is expected to significantly increase the potential for ad fraud over the next five years by 20-30%.

This increase could lead to global losses exceeding $150 billion annually by 2028, as fraudsters use AI to generate more convincing fake clicks, impressions, and user interactions.

BitAds addresses these challenges by focusing on actual sales rather than clicks or impressions. With its newly implemented Conversion Tracking system on Bittensor Subnet 16, BitAds ensures advertisers only pay for successful sales, reducing fraud and guaranteeing that every dollar spent leads to real outcomes. Miners earn TAO rewards based on the sales they generate, not just traffic, driving higher-quality advertising.

1. Advertisers launch marketing campaigns on BitAds through one of the apps built on top of the platform.
2. BitAds leverages the Bittensor network to distribute marketing tasks among miners.
3. These miners promote campaigns across the web, driving real sales and earning TAO rewards based on their effectiveness.
4. Validators then evaluate and score these efforts, ensuring transparency and fairness in the process.

In the traditional marketing, advertisers are paying publishers using dollars for impressions/clicks or sales. In the BitAds ecosystem, advertisers don’t directly pay miners. Instead, miners earn TAO tokens as rewards from the Bittensor network based on their marketing efforts. A good miner that is able to sell products or services and has a good conversion rate could earn a lot more money here with the same amount of work and spendings.

The BitAds platform encourages healthy competition among hundreds or even thousands of miners, motivating them to continually improve their marketing strategies and drive high-quality traffic, which could potentially lead to more sales.

When advertisers use BitAds, they’re essentially tapping into hundreds or even thousands of different marketing strategies deployed by miners simultaneously. For example, some miners might focus on social media marketing, using platforms like Instagram or TikTok to create content that attracts buyers. Others may use search engine optimization (SEO) to ensure their links rank well on Google, while some might opt for email marketing campaigns.

Out-of-the-box strategies could include promoting their unique links in niche online communities or forums related to the product or service they are selling. Miners might also collaborate with influencers or bloggers to create sponsored content. Additionally, some might think even further outside the box by promoting their links through unconventional channels like augmented reality (AR) experiences, QR codes on physical products, or even through interactive online games that reward users with special offers tied to the products they are selling.

Our Conversion Tracking application on Shopify can track sales of other products that a customer buys, even if they originally visited the store using a miner's unique link to purchase a different product. For example, if a customer clicks on a miner's link to buy an Iphone phone but ends up buying a Samsung phone instead, the 'BitAds.ai - Conversion Tracking' app will still track this purchase.

On BitAds, validators have several ways to generate income, including promoting their own products, developing applications on top of BitAds, or offering paid access to their APIs within the ecosystem.

Our scoring system is based entirely on Sales Volume and Conversion Rate. This means that only miners who generate sales are rewarded, while those who drive traffic without sales will be scored 0. TAO rewards are allocated exclusively to miners with actual sales. More information on the scoring formula is available on our GitHub repository.

BitAds is now fully integrated with all the Shopify stores through our BitAds application. This app enables detailed tracking of sales on any website where it's installed, identifying the specific miner's unique link used and the exact products purchased through it.

The "BitAds.ai - Conversion Tracking" Shopify app works by tracking visitors who enter a store through a miner's unique link. When a visitor lands on the store using the link, the plugin logs a unique visit ID and attaches it to the visitor’s session. If the visitor makes a purchase, the plugin verifies if the order was generated through the miner's link. It then notifies all validators with the order details, ensuring that the miner gets credit for the sale. The plugin also tracks changes in order statuses and updates the validators accordingly.

We are currently working on integrating WooCommerce as the next Ecommerce platform, and we have plans to incorporate other platforms like Wix, Squarespace, and BigCommerce in the future. This will allow us to expand our reach and work with a broader range of platforms, stores, and advertisers.