So, what exactly is Basic Attention Token, and how does it work?
The Origin of Basic Attention Token (BAT)
Basic Attention Token is a product of the Brave browser. This open-source browser focuses on privacy, security, and, as you may have guessed, cryptocurrency. Brave was developed by Brendan Eich, an American computer programmer also known for creating the JavaScript language and co-founding Mozilla Firefox. Eich was joined by Brian Bondy in this venture, a software developer who also played a role in the creation of JavaScript.
Brave was launched in 2016, offering a range of interesting features, such as Tor integration, ad-blockers, and more. Today, Brave has almost 60 million monthly global users, and almost 19 million daily users. Brave has also amassed over 900,000 content publishers on its platform, so it’s safe to say that it has a strong foothold in the web browser game.
In 2019, Brave released its own blockchain-based advertising platform, known as Brave Ads. The blockchain’s native token, BAT, plays an integral role in the project, which experienced one of the fastest-selling initial coin offerings (ICOs) recorded, raising $35 million in funding in under a minute.
Like many project-based cryptos, Basic Attention Token exists on the Ethereum blockchain and is an ERC-20 token with a current value of around $0.40. Of course, this is by no means a high number, but BAT’s purpose doesn’t surround its value alone, as it is not solely an investment asset. So, what does Basic Attention Token do within the Brave ecosystem?
What Is the Purpose of Basic Attention Token (BAT)?
If there’s one thing that internet users can’t stand, it’s ads. But, as web content becomes more prevalent than traditional media, businesses focus on communicating with consumers online. As such, advertisements are an integral part of our internet experience (much to the dismay of the majority of us).
In between the consumer and the advertiser is the publisher, or content creator, which often comes in the form of websites. Publishers are paid by advertisers to display their marketing material, but it’s difficult to impress potential customers, and the competition between online advertisers is getting pretty fierce. On top of this, the internet is now rife with harmful advertisements (also known as “malvertisements”) that can invade your privacy and access private data stored on your device without your knowledge.
These factors all play a role in this increasing friction between the advertiser and consumer. So, in light of this issue, Brave has developed a new way of serving both parties. This is where Basic Attention Token comes in.
Incentivization for Users
Because the Brave browser has a built-in ad-blocking feature, many people choose to use it so that they can avoid being marketed to when they’re surfing the web. But there is an exception to Brave’s ad-blocking rule. A Brave user can actually choose to drop the ad blocker and view advertising content. You may be wondering why anyone would want to do this, but there happens to be a monetary element to this.
Brave’s advertising system, Brave Rewards, works by offering users to be paid in BAT whenever they view advertising content. This incentivizes the user, while also benefiting the advertiser, as well as the publisher they pay to display their marketing content. Of course, users aren’t paid in huge amounts of BAT but can build up a healthy holding over time if they choose to continue viewing ads while using the Brave browser.
On top of this, users can give some of their BAT to content creators within the Brave ecosystem. For example, an individual can tip a creator that they like in the form of BAT, which the creator can then sell for cash on an exchange or trade for another crypto. And, because BAT is an ERC-20 token, it is available on a range of different cryptocurrency exchanges.
Brave chose to pay users via BAT for one main reason: privacy. Many cryptocurrencies offer high levels of privacy for token holders, and Brave doesn’t track and analyze data in the same way that a regular advertising network would.
Opportunities for Advertisers and Publishers
So, if all Brave users get paid to watch ads, where are the funds coming from? Well, when an advertiser pays for an advertising campaign on the Brave browser, a considerable proportion of the money they spend goes towards paying for user views. Then, when users view the advertiser’s content, the publisher who displayed it also gets a cut of the revenue in the form of BAT.
Brave’s system also tracks the attention time and general behavior of its users, so that advertisers have their content tailored more effectively toward the correct consumers. But this doesn’t mean that your online activity is shared with anyone. Rather, Brave keeps this information private and instead tailors the ads provided by companies to preferred users themselves. Any user’s activity is also kept entirely anonymous.
Advertising Security
Brave’s advertising infrastructure doesn’t stop there. Given that the Brave browser focuses on maintaining the privacy and security of its users, the safety of the advertisements that users are shown has also been taken into consideration. Brave is designed to keep you safe from malicious advertisements which may compromise your security and prevents third parties from tracking your online activity.
Basic Attention Token Has an Exciting Future in the Crypto World
Basic Attention Token’s impressive design gives it the potential to change the way digital advertising works. By incentivizing consumers, and offering greater opportunities for advertisers and publishers, all while keeping you safe, the ideas behind Brave’s BAT may one day hugely influence the digital advertising market.
