Basic Attention Token (BAT)

Basic Attention Token (BAT) is a cryptocurrency designed to transform the digital advertising industry.

Built on the Ethereum blockchain, BAT is integrated into the Brave browser, a privacy-focused web browser that blocks intrusive ads and trackers.

The token rewards users for their attention compensates content creators, and provides advertisers with a more efficient and transparent advertising model.

This guide will explore what BAT is, how it works, its recent developments, and its potential impact on the future of digital advertising.

What is Basic Attention Token (BAT)?

The Basic Attention Token (BAT) is the token that is part of Brave, a blockchain-based digital advertising platform, that aims to improve the security, fairness, and efficiency of the online ad world.

Through the Brave browser, BAT incentivizes users to watch or click on advertisements.

It can also be used to pay publishers such as blogs and content creators for ad spaces on their sites.

BAT and Brave Browser

In the current digital advertising landscape, users are often bombarded with irrelevant ads, and their online activity is tracked by companies that analyze their behavior and sell the data to advertisers.

Publishers, on the other hand, struggle to earn revenue due to the dominance of large platforms like Google and Meta, which take a significant cut of advertising revenue. Advertisers also face challenges with ad fraud and accurately tracking user attention.

BAT aims to solve these problems by creating a more efficient and fair system for all stakeholders.

It directly rewards users for their attention while providing advertisers with a more effective way to reach their target audience and ensuring publishers receive a fair share of the revenue.

Token Metrics:

  • Circulating Supply: Approximately 1.495 billion BAT tokens.
  • Liquid supply: 1.5 billion BAT
    • “One billion BAT was sold. In addition to the tokens sold, we created a development team pool of 200 million tokens. Finally, we created a user growth pool (UGP) of 300 million BAT.”

The Brave Web Browser

BAT is closely integrated with the Brave web browser, which plays a crucial role in the BAT ecosystem.

Brave is a free, open-source web browser that prioritizes user privacy and security. Here are some key features of Brave:

  • Ad and Tracker Blocking: Brave blocks ads and trackers by default, providing users with a faster and more private browsing experience.
  • Privacy Focus: Brave does not track users’ browsing activity or collect personal data.
  • Speed: By blocking ads and trackers, Brave loads web pages significantly faster than traditional browsers.
  • Security: Brave is built with security in mind, protecting users from malware and phishing attacks.

How does the Basic Attention Token work?

The Basic Attention Token (BAT) is the unit of reward in the digital ad platform and is exchanged between advertisers, publishers, and users.

The Brave browser incorporates BAT tokens through two channels:

  1. BAT Advertisement
  2. Brave Payment.

BAT Advertisement requires advertisers to use the BAT token to buy ad spaces.

Users who opt into Brave Payments allow ads to be displayed on the Brave Browser, generating BAT based on their browsing habits and also having the option to tip their favorite publishers or websites.

Users are entitled to up to 70% of the total revenue generated while advertisers and publishers share the remaining 30%.

As an Ethereum-based open-source project, BAT analyzes how users engage with digital ads and preserves this data in a distributed ledger.

BAT uses an algorithm to track users’ attention spans and measures maximum engagement among the millions of users who enabled Brave Payments on their Brave browser.

Advertisers can then see how effective their ads are in retaining users’ attention, which entitles them to more revenue at the end of their ad campaign.

In addition, BAT uses the ANONIZE algorithm to protect users’ data privacy rights.

Advertisers can use data to create tailored ads, but all user data and tracking information are saved exclusively on the user’s device, ensuring anonymity.

Why is BAT Important?

BAT is important because it addresses some of the key challenges in the digital advertising industry:

  • User Privacy: BAT respects user privacy by not tracking their browsing activity or collecting personal data. Brave uses an anonymous contribution system, so no one can track who supported which sites.
  • Ad Fraud: The BAT system reduces the risk of ad fraud by verifying user attention and engagement using Zero-Knowledge Proof (ZKP) protocols.
  • Fairer Revenue Sharing: BAT allows for a more equitable distribution of ad revenue between users, publishers, and advertisers. Users receive a share of the ad revenue, and publishers receive BAT for displaying ads and for user attention.
  • Improved User Experience: Users see fewer, more relevant ads, leading to a better browsing experience.

Use Cases of BAT

BAT has several use cases within the Brave browser ecosystem:

  • Tipping Content Creators: Users can tip their favorite websites, YouTubers, Twitch streamers, and other content creators with BAT.
  • Paying for Premium Content: Some publishers offer premium content or services that can be accessed using BAT. For example, notable publishers who accept BAT tokens include the Washington Post, The Guardian, Vimeo, MarketWatch, Barron’s, and Vice.
  • Donating to Websites: Users can donate BAT to support websites they enjoy.
  • Advertising: Advertisers can use BAT to pay for ad campaigns on the Brave platform.

BAT and DeFi

Brave has been integrating DeFi (decentralized finance) features into its wallet, further expanding the utility of BAT.

Here are some key DeFi features within Brave:

  • Brave Wallet: The Brave Wallet is a secure cryptocurrency wallet built into the Brave browser. It supports DeFi and NFTs, allowing users to buy crypto with credit and debit cards, manage their crypto assets, and access DeFi services all within the browser.
  • Brave Swaps: Brave Swaps is a decentralized exchange (DEX) aggregator that allows users to swap cryptocurrencies with multi-chain support, the best price, and the lowest fees. Users can also receive discounts when using BAT for transaction fees.

Team Background

The team behind Basic Attention Token (BAT) is composed of industry veterans with extensive experience in technology, security, business, and design.

Below is an overview of the key members and their backgrounds:

Founders

  1. Brendan Eich
    • Role: Founder & CEO
    • Background: Creator of JavaScript and co-founder of Mozilla and Firefox. Eich is a prominent figure in the tech industry, known for his contributions to web development and open-source software.
  2. Brian Bondy
    • Role: Founder & CTO
    • Background: A seasoned engineer with a strong focus on browser development and privacy technologies. Bondy has been instrumental in building the Brave browser and integrating BAT into its ecosystem.

Leadership Team

  1. Yan Zhu
    • Role: Chief Information Security Officer
    • Background: A security expert with a focus on privacy and data protection,
  2. Brian Brown
    • Role: Chief Business Officer
    • Background: Responsible for driving business growth and partnerships for BAT and Brav.
  3. Bill Engles
    • Role: Chief Financial Officer
    • Background: Manages the financial operations and strategy for the organization.
  4. Brad Richter
    • Role: VP of Design
    • Background: Leads the design team, ensuring a user-friendly and visually appealing experience for Brave and BAT users.
  5. Brian Clifton
    • Role: VP of Engineering
    • Background: Oversees the engineering team, focusing on the technical development of the Brave browser and BAT ecosystem.
  6. Catherine Corre
    • Role: VP of Communications
    • Background: Manages public relations and communications strategies.
  7. Marshall Rose
    • Role: Principal Engineer
    • Background: A key technical contributor with expertise in software development and system architecture.
  8. Luke Mulks
    • Role: VP of Business Operations
    • Background: Focuses on operational efficiency and strategic initiatives.
  9. Jan Piotrowski
    • Role: VP of Business
    • Background: Works on expanding BAT’s business opportunities and partnerships.
  10. Ryan Watson
    • Role: VP of IT
    • Background: Manages the IT infrastructure supporting BAT and Brave.
  11. Aubrey Keus
    • Role: VP, BAT and Browser Services
    • Background: Oversees the integration of BAT into Brave and other browser services.

Advisors

  1. Zooko Wilcox
    • Background: Founder of Zcash and a pioneer in privacy-focused cryptocurrencies.
  2. Greg Badros
    • Background: Former executive at Facebook and Google, with expertise in product management and engineering.
  3. Ankur Nandwani
    • Background: Formerly at Coinbase, Lookout, and Qualcomm, with experience in blockchain and mobile technologies.
  4. Jon Bond
    • Background: Co-founder of Tomorro LLC and Kirshenbaum & Bond, with a focus on advertising and marketing.

Potential Risks and Challenges

While BAT has a lot of potential, there are also some risks and challenges associated with it:

  • Competition: Brave faces competition from established web browsers like Google Chrome and Microsoft Edge. However, BAT has some key competitive advantages, such as its strong focus on privacy, its innovative reward system for users, and its experienced team with a proven track record in the technology industry.
  • Volatility: Like most cryptocurrencies, the price of BAT can be volatile.
  • Regulation: The regulatory landscape for cryptocurrencies is still evolving, and this could impact BAT in the future.
  • Adoption: The success of BAT depends on the widespread adoption of the Brave browser and the BAT platform.

Recent Developments

BAT and Brave have continued to evolve in recent times. Here are some notable developments:

  • BAT Roadmap 3.0: In late 2024, BAT introduced Roadmap 3.0, focusing on disintermediation, expanded blockchain integrations, and a creator growth program. This roadmap aims to enhance BAT’s utility across Web3 and beyond, making it more accessible and versatile.
  • Brave User Growth: Brave has seen significant user growth, with over 77 million monthly active users and 32 million daily active users. This growth suggests increasing interest in privacy-focused browsing and the BAT reward system.
  • BAT Wallets: The number of BAT wallets has also increased, reaching over 10 million. This indicates the growing adoption of the BAT token and its use within the Brave ecosystem.
  • Brave Wallet Enhancements: The Brave Wallet, integrated into the Brave browser, has seen significant updates. Users can now store, manage, and swap cryptocurrencies seamlessly, with BAT being a central component of the wallet’s functionality.
  • BAT Purchase by Brave: Brave has purchased a significant amount of BAT tokens to promote platform growth. Their lifetime purchase is 73.28M BAT, and their year-to-date purchase is 54.33K BAT. This demonstrates Brave’s commitment to the BAT ecosystem and its long-term vision.
  • DeFi Integration: Brave has been integrating DeFi (decentralized finance) features into its wallet, allowing users to buy and swap cryptocurrencies directly within the browser. This integration expands the utility of BAT and makes it easier for users to participate in the DeFi ecosystem.
  • Solana Bridge: BAT is now bridged to the Solana blockchain, expanding its utility and reach. This bridge allows for faster and cheaper transactions, further enhancing the usability of BA.
  • Solana NFT Integration: BAT expanded its utility by launching its inaugural Solana NFT collection, “BAT x Adam Ape for Brave.” This move increases BAT’s presence in the NFT marketplace and provides new opportunities for creators and users.