Basic Attention Token (BAT)

About Basic Attention Token (BAT)

What is Basic Attention Token (BAT)?

Basic Attention Token (BAT) is a digital advertising token built on the Ethereum blockchain that powers Brave Software’s blockchain-based advertising platform. The platform aims to transform the traditional advertising model by compensating users for their attention and improving the efficiency of digital advertising. BAT is the unit of exchange within this ecosystem, allowing users to receive tokens for viewing ads, advertisers to pay for targeted ads, and publishers to earn a fairer share of ad revenue.

This system operates primarily within the Brave browser, a privacy-focused browser where users can opt to view privacy-preserving advertisements. In return for their attention, users are rewarded with BAT tokens, making them active participants in the advertising ecosystem.

How does Basic Attention Token (BAT) work?

BAT operates within the Brave Browser, a privacy-centric browser that blocks unwanted ads and trackers by default. Here’s how the BAT ecosystem functions:

1. User Participation:
   • Users who opt into Brave’s ads system can receive BAT tokens as compensation for viewing privacy-respecting ads.
   • Users are in control of the ads they see, ensuring their browsing experience remains secure and private.
2. Advertising:
   • Advertisers pay for ad campaigns in BAT tokens. The Brave platform then distributes the tokens to users based on their attention.
   • A portion of the advertiser’s budget is allocated to the platform, with 70% distributed directly to users, rewarding them for their attention and engagement.
3. Publisher Compensation:
   • Publishers (websites and content creators) are also compensated fairly for their contribution to the ecosystem.
   • Publishers receive BAT tokens for user engagement with ads on their sites, which incentivizes them to create more relevant and high-quality content.
4. Efficient Advertising:
   • The system eliminates intermediaries such as ad networks and tracking companies, which typically increase advertising costs and reduce overall efficiency.
   • BAT uses Zero-Knowledge Proofs (ZKPs) to ensure that user attention is accurately tracked while maintaining privacy.

What are the potential use cases for Basic Attention Token (BAT)?

BAT aims to create a more efficient and equitable system for digital advertising. Here are the key use cases:

1. User Incentives:
   • Users are rewarded with BAT tokens for their attention when they view ads in the Brave browser.
   • This creates a new “attention economy”, where users get compensated for engaging with ads, unlike traditional models where advertisers pay intermediaries and publishers without directly rewarding consumers.
2. Advertiser Efficiency:
   • Advertisers can use BAT tokens to pay for targeted ads within the Brave browser and other digital platforms integrated with the BAT ecosystem.
   • The platform reduces fraud and improves ad targeting by eliminating intermediaries, ensuring that advertisers get more value for their ad spend.
3. Publisher Compensation:
   • Publishers, such as websites and content creators, can receive BAT tokens for hosting ads and generating user engagement.
   • The Brave and BAT ecosystem ensures that publishers are compensated more fairly than traditional ad networks, where the share of revenue passed to publishers is often small.
4. Future Applications:
   • As adoption grows, BAT could potentially be used across other digital platforms, including messaging apps, third-party browsers, and even in the metaverse, expanding its use beyond the Brave browser.

What is the history of Basic Attention Token (BAT)?

Basic Attention Token (BAT) was launched in 2017 following an initial coin offering (ICO). The project was developed by Brendan Eich and Brian Bondy, two individuals with deep roots in the internet software industry:

• Brendan Eich, the CEO of Brave Software, is the inventor of JavaScript and co-founder of Mozilla and Firefox.
• Brian Bondy, the CTO of Brave, is a seasoned engineer who has previously worked at Mozilla, Corel Corporation, and Khan Academy.

The project was launched with the goal of creating a privacy-focused digital advertising ecosystem that compensates users for their attention. The Brave Rewards program rolled out across most countries, enabling users to earn BAT tokens for viewing ads within the Brave browser.

Since then, BAT has grown in popularity and use, providing a new way to interact with digital advertising and improving both the user experience and the financial model for publishers and advertisers.