# DADS state channel

![](/files/IWsizgVLnA11aAOgnwEL)

With the current blockchain infrastructure, assuming each impression of an ad placement running on a blockchain leads to a large amount of gas fees and affects the maximum transaction per second of a blockchain. After intensive research, we decided to make advertising transactions on D.ADS state channel (off-chain) platform. Advertisers deposit a budget to the state channel, the system processes the off-chain transaction. Similar to publishers and users, the amount of their revenue is also calculated on the state channel until they make a withdrawal transaction, and will be calculated again from the time transactions arise.

That decision was largely driven by two critical factors: scalability and cost. The system needed to be able to scale to accommodate large numbers of users relatively quickly, as well as provide speed and zero cost per ad transaction. At that point, the factors that mattered. This importance is beyond the capabilities of Ethereum and other current blockchains.


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