On average we spend more than 3 hours a day on our phones and computers looking at social media, knowing or unknowingly watching advertisements. However, more than 70% of global digital advertising revenue goes to Google and Facebook. The BAT token aims to reshape the industry of digital advertisements by rewarding users’ attention to ads and at the same time distributing the majority of advertisement income to content creators.
How does the BAT token work
BAT is an ERC20 utility token designed to connect advertisers, publishers and users in a blockchain-based digital advertising and services platform. BAT token can only be used on the Brave Browser, a web browser created by the BAT token development team. Advertisers publish their ads by locking BAT tokens in smart contracts; users will receive the locked BAT tokens when they view the ads. On the other hand, content creators will also receive a portion of the BAT tokens based on user attention.
By cutting out middlemen, the BAT advertisement ecosystem provides content creators with a higher cut of ad fees, compensation to users for their attention and generally a lower cost to advertisers.
The Brave Browser is an open-source web browser developed by the BAT team focusing on security, speed and privacy by blocking ads and website trackers. On the browser, users can donate BAT tokens through micropayments to content creators (e.g. blogger, vloggers). Users also have a choice to watch ads to receive BAT tokens or to not watch ads at all.
Brave does not store any record of users’ browsing history. User data will only be stored by Brave if they have switched on Brave Rewards or turned on the Sync function. Brave Browser also allows Fingerprinting Protection to prevent sites from identifying users and tracking them across the web.
Brave Ads allows users to earn BAT tokens based on their attention to ads, at the meantime Brave browser will start to learn the user’s preferences so that only the most relevant ads will be shown. The user’s browsing history and preferences will be kept anonymous and will not be shown to anyone.
Brave Rewards allows users to contribute BAT tokens to websites they browse. Users can set a monthly BAT contribution which will then be split amongst websites based on user’s engagement time and attention.
All BAT tokens were created during the ICO with a fixed supply of 1.5billion tokens. The ICO of BAT token was issued on May 31 2017 and one billion BAT tokens were sold for 156,250 ETH at the time. At the time of this article, there are 200 million BAT tokens in the development pool and 300 million BAT tokens in the user growth pool. 40 BAT tokens will be granted to users when they download the Brave browser from the user growth pool to encourage usage and users will also receive 35 BAT tokens for each referral.
Written by Peter Chan
Trader @Genesis Block
For any queries please contact [email protected]