What is Basic Attention Token (BAT)?

What is Basic Attention Token (BAT)

Basic Attention Token (BAT) is a cryptocurrency that aims to create a virtuous cycle around digital advertising that is equal for creators and consumers.

Running on Ethereum (ETH) and natively integrated into a custom web browser called Brave, BAT can be exchanged between advertisers, publishers and internet users based on their web activity and aims to streamline commerce between the three groups.

Users are rewarded with BAT for viewing ad content, publishers can deliver high-impact ads, and advertisers can be confident that their messages are being viewed by an interested audience.

The end result is a new type of digital advertising platform developed by BAT.

Users can take the BAT, exchange it for fiat or another cryptocurrency, or pay for it to support their favorite content creators.

What is Basic Attention Token (BAT)

Who Created the BAT?

Brave Software's founder is Brendan Eich, whose background includes creating the JavaScript programming language and co-founder of the Firefox browser.

In 2017, Brave completed an Initial Coin Offering (ICO) for BAT, raising $35 million in 30 seconds from the sale of 1 billion BAT. At the time, 500 million BATs were reserved by Brave Software.

Of that total, 200 million BATs were reserved for the Brave team, with 300 million BATs reserved to be sold later to promote the platform.

Why Does Basic Attention (BAT) Have Value?

In advertising, eyes are money. Fees are paid to advertisers based on how many viewers they can get of their product or service.

But there's no guarantee that viewers are really paying attention. Since viewers are being compensated with BAT, the idea is that advertisers using the platform can be more confident that their ads are being seen and they are willing to pay a premium for that full attention.

Brave pays BAT to users who see ad content as a form of profit sharing. Users can exchange it for fiat currency or store it in a digital wallet. BAT can also be traded on exchanges.

BAT is also a finite asset, with only 1 billion BAT outstanding. In addition, no new tokens will be created after Brave has distributed the 300 million BATs reserved to stimulate user growth.

This means investors can be confident that their tokens represent a known percentage of the total BAT delivery.

Basic Attention Price (BAT)

 

How Does Basic Attention (BAT) Work?

All BAT transactions are established on Ethereum, a public blockchain that allows developers to build and deploy criptomoedas and custom apps.

Brave Browser

BAT operates on a browser called Brave, developed by the team that created the token. Brave is a free browser that claims to load 3-6 times faster than competing offerings as it only displays ads if users choose to see them.

Brave browser users can enroll in the Brave Rewards program, which allows them to get paid BAT to view ads or send BAT to content creators whose work they wish to support.

Brave's default setting is to block trackers and ads. It only activates the ads if the user accepts. Brave then displays native ads from trusted partners, which users are rewarded in BAT for viewing.

Brave Micropayments Ledger

To track BAT's movement, Brave uses the book Brave Micropayments.

The idea is that Brave Micropayments Ledger will allow advertisers, publishers and readers to enter into smart contracts to move payments between them.

Brave is exploring the use of zero-knowledge proofs for its blockchain, with the goal of providing anonymity to interested parties in online media transactions.

Why Use Basic Attention (BAT)?

To keep information flowing on the Internet, content creators need to generate revenue.

In an earlier blog post, Eich acknowledged the importance of a free Internet, but said the trade-off is that commercial sites need ad revenue to exist.

He said that this fundamental “conflict of interest” is to blame for the current cat-and-mouse state of the advertiser-user relationship.

Brave and BAT seek to turn that tug of war into a handshake. Advertisers can be confident they're reaching an engaged audience they know isn't annoying, and users can reap some of the ad revenue for themselves.

BAT seeks to break this cycle of avoidance and mistrust by creating an ad platform that is equally beneficial to advertisers, publishers and viewers.

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