What is Basic Attention Token?
Basic Attention Token is a blockchain-based platform tracking the total time Brave browser users spend on various websites. The Basic Attention Token is the native token of Brave Browser, and you can say that it is the fuel of the Brave browser digital marketing platform. Considering the global market size of the online advertising industry, it was about time that a blockchain-based platform tried to revolutionize it. In 2019, the online advertising industry was worth $304 billion. It will grow at 21.6% to reach a market size of $982.82 billion by 2025.
Advertising is one of the crucial business aspects which can either make or break a product. Advertising done right can bring in tons of revenue and build brand reputation. In fact, some entire industries like broadcast media depend on advertising as their sole revenue. The mighty Google would not have been able to fund numerous initiatives if it was not for online advertising that rakes in money. However, advertising can sometimes be annoying. Nowadays, advertisements are on every platform, be it newspapers, radio, TV, or online ads. But with increasing internet usage, digital advertisements have been one of the most effective forms.
Have you ever wondered how blockchain technology can shape the online ad experience of users? Well, we have a live example. It is already being done by the “Brave” new player in town, Basic Attention Token. Brave is determined to provide a secure, anonymous, and engaging advertising system. The BAT (Basic Attention Token) system provides something for every key participant. Be it end consumers, creators, or advertisers.
What Problems is BAT Addressing?
The team at BAT has found loopholes in today’s modern ad-tech, which was supposed to be a more efficient marketplace. Instead, the modern ad-tech is itself riddled with problems. Before Brave’s Basic Attention Token system, many companies tried changing the ad-tech space for good. They had many optimistic plans for both the creators and end-users and the advertisers. But, things did not go according to their plan. After all, a ton of complexion and middlemen were involved in the ad-tech ecosystem. Apart from this, issues like user privacy, increasing malware, and slow speeds further withheld the overall experience. Overall, the situation was bleak. That is when Brave’s Basic Attention Token System made a real difference in the global ad-tech space.
What are the solutions provided by BAT?
Basic Attention Token is here with a solution for all these problems. Apart from providing solutions, it offers a new ecosystem for creators, advertisers, and end-users. Using Blockchain technology, BAT has brought up a new deal in the world of advertising. It is called attention-based economics. They are on a mission to completely exclude middlemen from the system. It can ultimately give more freedom to the publisher to control revenue.
There is no doubt that the user’s attention is crucial, but the efforts to price it correctly have been in vain before BAT did it. Brave’s Basic Attention Token system is an efficient and transparent market system. It also offers a new platform and unit of exchange. Their first phase involved the launch of a new browser, Brave. Brave is a fast and open-source browser focused primarily on user privacy and contains a ledger system that anonymously gauges user attention. The accurate measurement ensures actual rewards on attention. The Basic Attention Token powers the decentralized ad exchange. It connects advertisers, publishers, and users to meet at an efficient marketplace. It uses smart contracts based on Ethereum blockchain technology.
What is the Basic Attention Token Technology?
The BAT technology is based on the Ethereum blockchain. Their token plays a crucial role in the marketplace. Ethereum is an open-source distributed computing platform that generates smart contracts. It allows the user to construct smart contracts for transactions made. These contracts are highly secure with the help of cryptography and can verify performance.
The Brave Micropayments Ledger is employed for micropayments using BAT tokens. The underlying concept behind it is that the advertiser will send a payment in the form of BAT tokens along with ads to the user. As the user views the ad, the flow of token payments unlocks. The user earns a share of tokens, and the rest is passed on to Brave and the publisher. Basic Attention Token will initially only be a part of Brave browsers and servers along with verified publishers.
The anonymous detecting technology of active attention of the user will only gauge active windows and tabs and accurately pass on information. BAT can also be used to enjoy premium services supplied by the system.
How do publishers make revenue?
The BAT system is built in a way that the publisher gets paid in proportion to the attention received by the user on their ad. The metrics are calculated in the back end. Transaction of Basic Attention Token will take place through the Brave Ledger system. It is a Zero-Knowledge Proof scheme that allows Brave users to donate anonymously to publishers using Bitcoin as an exchange.
The publisher serves the advertiser’s ad along with its content. The user finds the content relevant and throws attention to the ad display. The end user’s browser calculates how much time the user is attentive to the ad. Both the end-user and publisher receive some of the advertiser’s tokens. This transaction takes place under the blockchain. Thus, the publisher gets the tokens for their work and can redeem them on a public exchange that generates revenue.
What do the users get out of participating in the BAT platform?
Users are one of the key participants of the advertising ecosystem. They are the consumers who may find the ad relevant and purchase the product. Both the advertiser and publisher try to get the user to buy the products through influential ads and relevant content.
Users get BAT tokens in exchange for their attention given. These tokens have endless possibilities within the Brave ecosystem. If the user wants to donate the tokens to publishers, they can do so. But, counting on use cases, users can unlock premium content published through a micropayment using their BAT tokens. They can also use these BAT tokens to purchase digital goods such as images, data services, and publisher applications, which they may need on a one-time basis.
Gamers can use their tokens in games provided by publishers on the platform. Many platforms have profitable gaming applications that open up new revenue gates for publishers and a punch of excitement to the user.
We can list down some of the most interesting uses of BAT tokens:
- BAT utility for search engines
- eCommerce using BAT tokens
- Utilize BAT for content sharing with IPFS
- Burn tokens in applications within the BAT ecosystem
- Use BAT Tokens for value-added services
What is the future roadmap of Basic Attention Token?
The team at Basic Attention Token is determined to disrupt the online or digital ad marketplace by creating a transparent or decentralized platform. The roadmap looks something like this:
- Pre 1.0 BAT: The first target of the team was to deploy the Brave browser. It gauges user attention accurately. Secure measurement happens without hindering user privacy, and the publishers are rewarded accordingly.
- 1.0 BAT: The second step was to link the BAT wallet with the browser. By doing so, a common platform is generated, which is fully powered by BAT tokens. It is handled by Brave’s internal Zero-Knowledge Proof ledger.
- Beyond 1.0 BAT: User privacy has been given special attention. Alternative BAT metrics based on the advertiser’s feedback cross-verify transactions in the form o
f attention given and results. A decentralized audit is done that makes the system transparent.
- Browser as a platform: After the basic concept of the system works, the team is keen to add value-added services for users on the browser platform.
What about the Token Launch?
The initial goal of the BAT team was to raise $24 million from the token exchange. The BAT team had a minimum target of $5 million. The exchange was to be done in ETH/USD exchange rates which are highly volatile and can change the numbers. A basic calculation was drawn to hit targets.
Maximum financing of 156,250 ETH at the time of calculation was required to raise the maximum sum, and a minimum of 27,343.8 ETH was required to hit the $5 million mark. As per exchange rates, each Ethereum token is equivalent to 6,400 Basic Attention Tokens. The first block of tokens was launched on May 31, 2017. Token launch time was set to 30 days, and the process would have stopped if the maximum limit would have reached. Well, the token sale was beyond the comprehension of even the BAT team. Within 30 seconds, $35 million worth of BAT tokens were sold. Yes, you read that right! Thus, BAT token sale is one of the most successful in the history of cryptocurrencies.