Overview of BAT
There are currently over 1600 cryptocurrencies in the market, and I can’t help but join a host of other experts to call them ‘shit coins’. Many of these projects have no business being on the blockchain, and some of them are simply avenues to deceive gullible individuals. The sad thing is that people are dumping millions of dollars in these projects that definitely won’t stand the test of time. The Basic Attention Token (BAT) is not one of those projects, and I believe has some value and is worth looking at.
The world of digital advertising tilts in favor of centralized platforms like Facebook and Google. The market is filled with so much fraud, middlemen, and trackers. Think about it, as a user, you are being taken advantage of (you literally have little, to no say on these platforms). Advertisers are not really making the best use of their resources, and publishers of valuable content are hurting. Let’s have a look at some statistics:
- Do you know that you spend as much as 50 percent of your mobile data on trackers and ads (something you don’t really need)? This amounts to about $23 every month.
- Up to 21 percent of your battery life is wasted on viewing or processing ads
- Large sites have as much as 70 trackers and are a great source of malware
As a user, although you may not have taken note, it’s quite obvious how inefficient traditional digital advertising systems are. You are literally sacrificing your privacy and attention for free.
For advertisers and publishers, the story isn’t any different. Advertisers are losing out due to lack of information. They are not also sure that the right audience is targeted with their ads, causing them to lose out on the ROI of their ads. The revenue of publishers on the other hand is dropping. Statistics show that the revenue earned by publishers have dropped by over 60% in the last 1 year, and more than 600 million desktops and phones now have ad-blocking programs installed. After all, nobody likes ads. It is annoying having your video interrupted by an ad on YouTube or Facebook.
BAT is the brainchild of Brave. Brave is an open-source browser that tries to solved the problem of privacy by blocking trackers and malware. It also has a decentralized system for capturing user attention, so that publishers can get rewards directly. BAT serves as the fuel of the network. It is used to performing different transactions on the Brave network.
Advertisers pay for ads using BAT, while users get compensated in BAT for viewing ads. The Brave browser collates data on what users spend most time and use this information to calculate a proportional reward for publishers, still in BAT. This provides an efficient and transparent system.