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Arround: Decentralized augmented reality (AR) platform

The ARROUND app is a free cross-platform multi-user network that will allow smartphone users
to see augmented reality objects and interact with them, as well as communicate with each other.
For users, ARROUND is a unique communication and entertainment platform in augmented reality.
The platform infrastructure utilizes blockchain technology and is designed for the development
and sale of goods, services, information and advertising using the principles of a decentralized

Our approach to attract users to the system is the following: through viral marketing, all active
users of existing social media networks will learn about the advantages of the ARROUND platform, of the ‘wow-effect’ of its impressive AR content, and of the exciting opportunity to communicate via augmented reality. Links to view content on the ARROUND platform will spread quickly around the world.

Executive Summary

According to the analysts at Juniper Research and Goldman Sachs, the augmented reality market will grow by 20-100 times over the next 5 years. Given the latest technological advancements and major breakthroughs in the development of AR technology, its rapid spread among the consumer market is now anticipated. This breakthrough will become a turning point in the history of mankind. It will disrupt our day-to-day existence and open up completely new activities and ways to interact with the people and places around us. Augmented reality will affect the majority of the world’s population and become an integral part of our lives. Scientists at the University of Liverpool claim the whole generation born after 1995 — Generation Z — will already become the first augmented reality generation, for whom AR technology will be as commonplace as smartphones and the Internet are for us today. Growth forecasts for the AR market reaching US $115 billion by 2020 seem entirely realistic. The market capitalization of some newly established companies in the field of AR/VR are already in the hundreds of millions of dollars. Take Magic Leap for example, the current market leader with a capitalization of US $6 billion. At the first stage of AR market development, the smartphone will be the main device used for interacting with augmented reality. There are currently 2.3 billion smartphone users in the world, which means the already existing number of potential AR users is also verging on this number. AR technology is expected to become one of the cornerstones of the mobile advertising market in the future. It is projected to be worth US $184 billion in 2018 with a subsequent annual growth of 10% -15%.

For developers and advertisers, the ARROUND platform is an innovative partnership network in the field of AR and a new mobile advertising channel with unique qualities. The global AR market offers almost no solutions that provide high quality localized AR content neither for consumers, nor for advertisers. In Russia the situation is the same. Using our unique competitive advantages, we aim to get a substantial share of this market within 2-3 years of the project launch. 4 To achieve this goal, we plan to fill the AR layer with quality content for users. We also have contacts with hardware manufacturers (AR glasses), creative contractors, as well as with the Atrium shopping mall (Moscow). ARROUND’s strategic partner is 36’6, the largest pharmacy network in Russia (15% of which belongs to the world’s largest pharmacy chain, Walgreens Boots Alliance). In addition, we plan to enter AR markets in Eastern Europe, as well as in the US and Germany.

The content on the ARROUND platform will be created by users, advertisers, as well as by robots that will transfer the most popular geotagged content from open sources on the Internet (for example, content that gets a lot of likes on social media, portals, etc.). In addition, the ARROUND team will run special projects to involve users (campaigns, flash mobs, shows, events, etc. in AR.) We plan to gradually expand our partner network of quality content producers and involve users in content creation by offering them a marketplace for selling their content on the ARROUND platform along with user-friendly tools that don’t require any programming skills. For advertisers, we will develop three generic AR-solutions, as well as standard advertising campaigns for retail stores, shopping malls and mass events. We will actively involve advertising and creative agencies in providing similar services within our platform. The unique feature of the ARROUND platform is that it will allow any advertiser to show their commercials to an almost unlimited number of users. There is no need for complex stationary systems to demonstrate AR advertising using the ARROUND platform.

In addition, the ARROUND platform provides a set of tools for precise targeting aimed at promoting specific products. AR has enormous potential to make Ads go viral, creating better user engagement rates over traditional means of mobile advertising. We use an innovative approach to making partnerships with all the augmented reality market participants; we are committed to cooperating and attracting app developers, hardware providers, and content developers to our system on mutually beneficial terms. By 2021, we plan to expand the network and attract partners from Europe, Southeast Asia, and the countries of North America, as well as to increase the user base to 8-14 million people. According to our forecasts, this will increase Peer-to-Peer sales to US $125-250 million.

The number of ARR tokens will be limited to 3,000,000,000. Tokens will be released on the ERC20 smart contract standard on the Ethereum blockchain and will also be traded on cryptocurrency exchanges. Tokens will be utilized for making purchases of digital goods and services in the ARROUND ecosystem. The use of blockchain technology will ensure equal conditions and additional guarantees to protect digital asset owners’ property rights on the ARROUND platform, as well as to protect the intellectual rights of developers and artists living in any country around the world.

Mobile Advertising and AR Market Trends and Size

Generation Z will become an augmented Reality Generation

According to a recent study conducted by the University of Liverpool, those born in developed countries in the 20th century can be divided into five generations: “Silent” generation, baby boomers, generation X, generation Y, and generation Z. Each generation has its own “core fashionable products”. For the generation born before 1945, it was a car, for baby boomers — a TV set, for generation X — a PC, for generation Y — a smartphone, and for generation Z, it will be augmented reality devices.

Global companies have long been looking for ways to use augmented reality for advertising purposes and are currently trying various options. The demand for efficient AR advertising tools is certainly growing. The following companies have already advertised their products in AR: Toyota, Starbucks, Kellogg and General Mill, Volkswagen, IKEA, Gold Streetwear, Disney, Netflix, Pepsi Co, Apple, Google, Microsoft, Facebook, Samsung, Sony, EA, Ubisoft, Blizzard, Amazon, McDonalds, Adidas, and many others. However, most of their promotions utilizing AR technology are currently limited to local demonstrations of the possibilities of augmented reality and the subsequent distribution of videos and photos through social media.

Mobile Advertising Market Size

By the end of 2016, there were 2.3 billion smartphone users in the world. Most smartphones can be used as AR devices for interaction and communication in augmented reality, as well as for advertising purposes

The mobile advertising market is the engine of growth in the global advertising market. According to comScore’s 2017 Cross Platform Future in Focus report, it is fuelled by the fact that — consumers spend more than 4 hours a day using their mobile devices. Therefore, the advertising market is becoming more focused on mobile applications, not just on mobile web surfing. According to the latest data from Yahoo’s Flurry, 90% of the time that consumers spend using their mobile devices is spent using mobile applications. Mobile applications that provide access to augmented reality may soon become one the most popular apps and, therefore, become the major source of advertising revenue.

Unlike AR, virtual reality (VR) completely replaces the vision of the real world. In order to enter virtual reality, the user needs to wear a helmet and stay in a special room, while augmented reality is created in the real world and complements it. In order to observe it, the user needs only a smartphone or special glasses. The user can freely move in the real world while observing the augmented reality and interacting with it. Currently, the augmented reality and virtual reality markets are growing rapidly and have become one of the main drivers for the IT industry. According to data provided by Juniper Research, in 2016, the AR/VR market size was about US $3 billion (of which the share of the AR market was US $1 billion and that of VR market — US $2 billion), and by 2020 it will exceed US $150 billion (the share of AR market is projected at US $115 billion). It means that over several years, the AR market will grow by more than 100 times. Taking into account technological advancements, a serious breakthrough in the development of AR technologies and their spread among the population is expected. This breakthrough will become a turning point in the history of mankind. It will change the way the majority of us live.

The figure above shows that the amount of revenue generated by AR services is much greater than VR, despite VR claiming the headlines. The leading IT corporations are also actively engaged in the development of AR technology. Google, Facebook, Apple, and Samsung have already announced the beginning of work on AR platforms. Investments in AR developments are growing rapidly as well. Between 2014 and 2016, the amount of investments in AR technology increased to US $1.6 billion. A market this size gives entrepreneurs enormous opportunities. With the ARROUND platform’s cutting edge technology you can open new lines of your business in the augmented reality and serve your customers better.

AR Market Trends

Since the introduction of motion tracking technology, AR devices are already able to understand the user’s location and orientation when moving in a 3D plane. Area Learning algorithms use visual cues, allowing the device to recognize the location and correct its movement. Depth perception sensors can “inform” the user about the forms of the surrounding world and build virtual interaction processes based on a cloud of points. We plan to implement these technologies in the nearest future in the ARROUND platform. In addition, we plan to use markers placed at the premises of partner organizations to increase the speed of the augmented reality layer deployment and improve its positional accuracy.

The personal computers that appeared in the late 80s and early 90s represented the initial type of platforms. Then came the Internet. The next stage was mobile technology. Today, content consumption on mobile platforms has overtaken personal computers. Virtual and augmented reality is the next step for the platform development, which will feed the creation of new markets, products and business. Now is the best time to develop technology in this area, as there is a significant window of opportunity that has opened up.

The falling price of AR devices will trigger their rapid market spread and availability for larger consumer groups, as it previously already happened with personal computers, laptops, and smartphones.

Personal computers caused a revolution that was initiated mainly by enterprises. In the case of augmented reality, experts see the demand in both the B2B and B2C sectors.

Some notable deals that took place in the  AR/VR Market in 2015-2016

The biggest players in the market are actively investing in start-ups and in their own development in the field of augmented reality. Magic Leap received the largest amount of financing in the AR market: US $793.5 million from a pool of investors headed by Alibaba. PTC purchased Vuforia (AR platform developer) for US $65 million. DAQRI purchased ARToolworks for US $38 million — a developer of software for VR helmets similar to Hololens. Apple acquired Metaio’s AR platform for US $30 million. Google bought Eyefluence, makers of AR/VR eye-tracking technology, for US $14 million. The capitalization of newly established companies in the AR/VR market comes to hundreds of millions of dollars.

  Introducing ARROUND Augmented reality is about to radically enhance how we experience our lives. ARROUND is leading the race into this brave new world by developing a consumer app for the mass market, a dedicated portal for advertisers and an SDK and API for developers. Advertisers get a fresh new way to engage their audience, users have a captivating digital environment to explore, and AR developers gain access to a huge market for their software and hardware. ARROUND is a complete ecosystem that unites consumers, advertisers and AR developers on a single platform. Advertising will never be the same again. Around Platform - A Comprehensive Solution The ARROUND Platform Incorporates a Mobile Application, a Well-Developed Ecosystem, and Content for UseARROUND is an innovative communication and entertainment platform in augmented reality. The platform has an infrastructure with a distributed registry on blockchain and can be used for the development and sale of services, advertising, information, and products based on decentralized crypto-economics. By downloading the ARROUND App users will get three handy tools: ARROUND Camera: used for discovering “rounds” — augmented reality objects which have a geo tag or which are tagged to the user’s smartphone. For example, promo campaigns, channels of bloggers, chat rooms, and AR shops for selling real and virtual goods and services. Also, each user can control the visibility of their AR status to other users and can customize their own AR persona. ARROUND Newsfeed: news from rounds to which the user has subscribed. ARROUND Map: navigation with tips where to find new rounds. Each user will also have the option to display their location on the map so that other users can add her to their AR Newsfeed and browse her public rounds.

Problems that currently exist in the ar market and their solutions as offered by the arround platform

FOR ADVERTISERS Problem: The advertising market is oversaturated. Traditional media channels are losing their contact with target audiences. The advertising industry needs to open new advertising formats, spaces and methods


ARROUND augmented reality provides a new digital environment and a new space for advertising and communications, including new branding opportunities. In the real world, there is little room for advertising billboards, but there is more than enough space for that in ARROUND augmented reality.

ARROUND will provide the required digital infrastructure that will allow advertisers to address their target audience and create unique advertising messages for each user based on their social and demographic factors, as well as their user profile and interests.

FOR USERS Problem: There is a lack of truly interesting content to make the users access the system on a daily basis.


ARROUND is a public information space that will be gradually filled with content; it is a space where users can communicate, create their own content and share it.

ARROUND offers free access to all its features for all users.

FOR AR DEVELOPERS Problem: There is no demand for AR content. Solution: We connect developers with advertisers who are willing to pay for their content.

ARROUND residents will have an opportunity to create and monetize their own AR projects using a constructor (similar to Wordpress and YouTube). Thanks to ARROUND’s tools, anyone can develop and add their augmented reality object.

FROM THE STANDPOINT OF DEVICES USED Problem: There is still no single user platform that could be accessed from any device and that would create demand for AR content. The market is fragmented and there is a need for a multipurpose ecosystem to organize the operational interaction between AR content developers and end users.


AR content created will be visible from all standard types of devices In the future, ARROUND will support any type of device (smartphones, tablets, AR glasses). Users will be able to see and simultaneously interact with both augmented reality and real-world objects through various devices.

Competitive analysis and advantages of the arround platform

Our main competitors are ICO projects planning to sell virtual land and avatars: Arcona, Spheroid Universe, TaDa Time. We plan to outperform them through partnerships with advertisers and technology suppliers, as well as through our well-thought-out economy and our primary user attraction program. The key competitive advantage of the ARROUND platform is its transparent and attractive monetization system for every user.

Project development forecast

Our Business Model

Any user of the system will have an opportunity to use the features of the ARROUND platform: A) Long-term rent of AR spaces to receive rewards for ads displayed on them. B) Sales of content to other users. A billboard in the center of a large city, such as Paris, generates about 50,000 impressions per day and costs about US $10,000 per month. For comparison, a banner on a website generating 50,000 impressions per day will cost about US $300 per month. In the ARROUND system, we will be able to display an AR banner for US $300 instead of a physical billboard costing US $10,000. Below are the main parameters of the ARROUND business model:

  • The ARROUND platform will earn money by showing ads.
  • Ad prices inside the system will be set in fiat currencies.
  • Payments for ads and purchases inside the system will be made using ARR tokens. Tokens can be bought using both cryptocurrencies and fiat money.
  • Benefits for users: discounts, bonuses and rewards for performing tasks from advertisers; token transfers between users.
  • Income sources for service providers: payment for premium content by advertisers and users.
  • Income of blockchain node holders and the owners of servers with content: a share of transaction fees paid automatically and automatic payments from the Network Development Fund (NDF). All these payments are expected to be made using smart contracts.

Arround: Decentralized augmented reality (AR) platform Arround: Decentralized augmented reality (AR) platform Reviewed by haw on November 13, 2018 Rating: 5

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