TL;DR
“Digital advertising is broken.” This is the premise that Basic Attention Token (BAT) aims to fix. How exactly does it do that? By rewarding user attention and creators’ work in advertising.
Powered by the Brave browser, BAT aims to change the traditional advertising model. The idea is that this new design can benefit users, creators, and even advertising companies.
Introduction
Designed by one of the Web's most renowned designers, Brendan Eich, the creator of Javascript and co-founder of Mozilla.org, the Ethereum-based Basic Attention Token tries to solve one of the Web's biggest problems: advertising.
BAT seeks to reward Web users and content creators based on attention. Tokens are distributed to users based on their online activity, and to creators according to how well they capture users’ attention. Advertising space can also be purchased with BAT. But how does this cryptocurrency work, and what does it have to do with the Brave browser? Let’s find out.
What is Basic Attention Token (BAT)?
BAT is an ERC-20 token that seeks to reward both users and advertisers. Users watch ads and get paid accordingly, while content creators get rewarded for how much of a user’s attention they capture. BAT is a way to monetize attention, sometimes referred to as “the attention economy.”
The BAT reward feature is only available on the privacy-focused Brave Web browser. Brave blocks third-party ads and trackers by default, and is also integrated with Tor. BAT is also used to buy ad space and tip content creators within Brave.
While you don’t need Brave to trade BAT, the benefits of the token will be apparent if you use Brave. However, if you just want to trade or store it, Binance is sufficient.
How Basic Attention Token (BAT) works
After downloading the Brave browser, users can opt for Brave Rewards. Here's how to earn BAT using the browser.
How exactly? By browsing Brave and viewing ads. Creators are rewarded based on the attention their content attracts. Users can tip BAT to creators they like. Advertisers can also spend BAT to buy a piece of space on a user’s screen.
BAT transfers via Brave Rewards are done using the Uphold platform. This also means that Uphold covers the gas fees of the transfer process. By default, no identity verification is required to activate and use Brave Rewards. However, if you want to withdraw your earnings or deposit more than $1000 into the platform, you will need to provide KYC information.
Why Basic Attention Token (BAT) is important
Basic Attention Token (BAT) was designed to solve a problem that online advertising has failed to address in the ongoing shift from desktop to mobile. While websites are now designed to perform well on mobile, the same is not always true for ad servers, which can actually slow down the browsing experience.
BAT calculated that in 2018, ads cost mobile users up to $23 per month in data, and consumed up to 21% of mobile battery. Additionally, ads can be an unwanted distraction for many people, and often lead to privacy violations.
On the other hand, traditional publishers are also losing ad revenue due to this browser advertising landscape. Brave aims to introduce a new system that is more beneficial for all parties involved.
Use case Basic Attention Token (BAT)
Advertisers can buy ad space on Brave using BAT instead of USD. Just like Google, Facebook, or other ad platforms, they can see metrics like views, clicks, conversions, and more.
Another important use case is related to metadata. It is no secret that metadata is extremely valuable information. However, users who generate the data usually do not receive any compensation. Brave and BAT aim to reward users for providing personal metadata.
Individuals or organizations with their own websites, publications, YouTube channels, or Twitch accounts can sign up as content creators. If they sign up, users can then tip them BAT if their content is deemed valuable. This type of model could create a more profitable space for rewarding the most useful content on the Web.
If you are interested in DeFi, you can also use BAT as collateral on MakerDAO to mint DAI.
➟ Want to get started with cryptocurrency? Buy Bitcoin (BTC) on Binance!
How to store Basic Attention Token (BAT)
BAT is stored in the Uphold wallet within the Brave browser. As of December 2020, this is the only place you can transfer your BAT earnings from Brave Rewards. As mentioned earlier, if you want to withdraw your earnings from Uphold, you will need to provide KYC information.
Additionally, BAT is an ERC-20 token on the Ethereum blockchain. The token can be stored in many places, including exchanges like Binance, web and mobile wallets, and hardware wallets. Both Ledger and Trezor support BAT storage.
Conclusion
BAT and the Brave ecosystem aim to replace the digital advertising industry. The move towards a more transparent blockchain-based advertising model is a win-win for users, creators, and even advertising companies.
Is Brave a better way to advertise on the Web? Maybe. BAT still has a long way to go, if more people choose Brave Rewards and more companies join the ad auction.
Still have questions about Basic Attention Token? Check out our Q&A platform, Ask Academy, where the community will answer your questions.
