Basic Attention Token

What is Basic Attention Token (BAT)?

Basic Attention Token is the native token of the digital advertising platform centered around the Brave internet browser.

Today’s ad-tech ecosystem is dominated by large, mass-adopted technology companies that sell user data and take the lion’s share of all revenue generated by Internet users.

When engaging with the internet, users are subject to a nigh-inescapable bombardment of advertisements. This results in users being force-fed with commercials, with no choice but to endure this drain on their time and attention.

Perhaps worse still, advertising fraud and abuse are rife. A simple online search for many services, especially in the cryptocurrency sector, often sees users being directed to phishing or clone websites via ads. These websites are usually designed to execute startling scams or hacks.

Web3 is a term that’s often bandied about with abandon, but Brave and the BAT token represent an attempt to solve some of these problems. Brave also very much aims to give privacy and agency back to the users.

Taking it a step further, this platform is designed to reward all participants, including consumers, for engaging with advertising. For instance, one of its features is that the Brave browser pays you in BAT if you choose to view ads.

When Was Basic Attention Token Launched?

The launch of Brave was motivated by many of the issues with digital advertising, including the fact that the very efficacy of ads was in question.

Millions—if not billions— are spent by firms to ensure websites, apps, and search engines cram their brands onto users’ screens. It’s questionable whether this approach actually works.

All of this led to Brave’s launch in 2016, granting users the priceless benefit of privacy, as well as blocking ads and online trackers. This, along with a Chromium-based feel familiar to most users, led to fast adoption of the Brave browser, especially among crypto enthusiasts.

According to Brave’s transparency website, the Brave browser now has almost 20 million daily active users and more than 57 million monthly active users. There are also 1.6 million verified content creators on a variety of platforms.

The Basic Attention Token was a natural next step, serving as a focal point for the digital advertising economy.

The BAT token was launched in 2017 to massive demand. It broke all kinds of records as its Initial Coin Offering raised $35 million in under a minute. According to reports, Brave had previously received $2.5 million in angel investor funding.

Who are the Founders of Basic Attention Token?

Brave and BAT were founded by bona fide superstars of the internet. Brave Software CEO Brendan Eich invented JavaScript in 1995. If that wasn’t enough, Eich also founded Mozilla, launching one of the world’s most popular browsers, Mozilla Firefox, in 2004.

Eich created JavaScript while at Netscape and, following his co-founding of Mozilla, worked as chief architect. Eich helped spin out the Mozilla Foundation, where he was the lead technologist and sat on the board of directors.

Eich took the role of CTO when Mozilla Corporation, the group’s for-profit arm, came into being in 2005. He was appointed CEO in March 2014 but stepped down and left the company 11 days later. The reason was widespread criticism and backlash over his political views.

Brave CTO Brian Bondy is also a veteran of Mozilla. He has plenty of software engineering expertise and experience, given stints at Corel Corporation, Evernote, and the Khan Academy. Bondy co-founded ROBOBAK and VisionWorks Solutions before co-founding Brave.

How Does Basic Attention Token Work?

One of the headline features of the Basic Attention Token is that Brave browser users get paid in BAT for viewing ads.

Furthermore, these ads aren’t generic. One of Brave’s security measures is that it only displays advertisements from its pool of verified advertisers. That introduces an element of control, and Brave ensures no scams or fraudulent ads are served to users.

To become part of this verified pool of advertisers, companies pay a certain amount in BAT. This fee then gets distributed among users, essentially creating an economy where companies pay you to view their ads.

The Brave Ads platform uses two main ad formats—Sponsored Images and Native Push Notifications. Sponsored Images are high-definition images featured in the Brave new tab image rotation. This format was created for high-impact branding and awareness campaigns.

Push Notifications, however, show up as users browse, displaying the brand name, a call to action that drives users to the desired landing page, and a click-through URL.

Meanwhile, content creators—also known as “publishers”—can benefit despite Brave’s inherent ad-blocking. Users who view content using Brave can directly contribute to content creators even if they don’t have an account with Brave.

The process is similar to tipping. If the creator doesn’t have an account, they will be prompted to create one in order to collect their BAT contributions. These contributions can be made on a one-time basis or even set up as a monthly fee.

What Makes Basic Attention Token Unique?

BAT and its entire economy are unique for the way they put a Web3 spin on what was previously a very broken system. In an economy where only a handful of companies enjoy dominance in both revenue and power, Brave’s system is a breath of fresh air.

Controversies around the sale of user data and a complete lack of privacy aside, advertising also seems to be changing for the worse. This is evidenced by one popular platform’s trials of a new advertising scheme.

Of course, Brave browser users remained unaware of the trials since the browser blocks the platform’s ads completely.

Even when users disable ad-blocking on Brave, advertisers or publishers cannot log users’ private data—not even IP addresses. Brave also blocks third-party cookies. While first-party cookies aren’t blocked by default, users can block or enable cookies globally or on a site-by-site basis.

In fact, Brave’s website points out that “Google will only have the ability to track you within their own domain and won’t be able to use that information to target you outside of google.com.”

How is the Basic Attention Token Network Secured?

The Basic Attention Token is an ERC-20 token on the Ethereum blockchain, so it is secured by Ethereum.

Ethereum is one of the most decentralized existing blockchains with hundreds of thousands of validators. Following its “merge,” it uses a proof-of-stake (PoS) consensus mechanism.

Energy-efficient and robust, PoS sees validators lock up ETH in the protocol and get rewarded for good performance based on how much they have staked. A higher stake also prevents misbehavior since behaving against the protocol can slash the validator’s stake.

What is the Use of BAT?

The Basic Attention Token is used as a means of value transfer throughout the Brave ecosystem. Advertisers using the Brave Ads platform pay for the right to become validated advertisers using BAT. These BAT tokens go straight to Brave browser users minus a fee.

Brave browser users can then use BAT to tip content creators and even set up a monthly payment of BAT to their favorites.

Who Controls Basic Attention Token?

BAT is controlled by its creators, Brave Software Incorporated from San Francisco. Brave Software published the BAT whitepaper and was founded by Brendan Eich and Brian Bondy.

How Much BAT Is In Circulation?

BAT has a maximum supply of 1.5 billion BAT, all of which are in circulation, making BAT fully diluted.

The 2017 BAT ICO saw 1 billion BAT sold to raise $35 million. 200 million BAT were locked in a development pool, and 300 million BAT went towards the user growth pool. As the fully diluted supply implies, both pool addresses are now empty.

How Do You Buy BAT?

You can purchase BAT in many different ways. The easiest way for many is to buy BAT from a reputed cryptocurrency exchange. While many exchanges offer BAT, two are particularly notable: Uphold and Gemini.

To start receiving payment for viewing Brave Ads, Brave browser users have to sign up for an Uphold or Gemini wallet for the rewards to be paid into. More exchanges or ways of claiming BAT may be added in the future.

You can also buy Brave in a decentralized manner via Ethereum-based decentralized exchanges like Uniswap. Finally, you can swap tokens via the Brave browser’s integrated wallet. Using the Brave wallet’s on-ramps like Wyre, Sardine, and Ramp Network to buy BAT using a credit card is also an option.

Is It Possible to Buy Basic Attention Token Instantly?

Buying BAT on a centralized exchange platform like Uphold or Gemini is generally instant since there is no actual token settlement behind the scenes. Just like with a stock brokerage account, your funds and any tokens you trade for are held in custody by the exchange.

However, decentralized exchange, peer-to-peer trading, or swaps are another story. When you buy BAT in any of these ways, the blockchain is engaged, and BAT tokens will actually be sent to your wallet address.

How fast the transfer happens depends on whether you’re using a layer 2 solution atop Ethereum, such as when you use Uniswap V3 with Polygon or Arbitrum. If you are, transactions are practically instant. If not, the process may take a few minutes.

How Do You Store BAT?

As mentioned, storing BAT on a centralized exchange platform is viable as long as you’ve done your due diligence and you trust the platform.

Otherwise, using a private wallet is always an option. BAT is an ERC-20 token, so any wallet compatible with Ethereum can store your BAT. This includes hot (online) wallets like Metamask or hardware wallets like Ledger.

Of course, using the Brave browser’s own integrated wallet is also an option. This wallet is built directly into the browser, so you don’t need to use extensions or take any other steps.

It’s also possible to use the Brave browser to store NFTs. You can buy, send, store, and swap thousands of assets across all Ethereum and EVM-compatible blockchains, as well as Solana and Filecoin.

It is important to note that you can’t use the Brave wallet as a destination for Brave Ads rewards. You can, however, withdraw the BAT you receive from Uphold or Gemini to the Brave wallet.

Basic Attention Token Energy Consumption

The Basic Attention Token is an ERC-20 token on the Ethereum blockchain, and the Brave ecosystem does not feature its own blockchain. As a result, it’s impossible to suggest that BAT is responsible for any sort of meaningful energy consumption.

Is BAT a Good Investment?

Even if the Basic Attention Token and Brave rewards were disregarded, the Brave browser is a highly compelling product. It promises users a clean, fast, and highly private browsing experience, and it does so in a big way.

Brave was deemed to be by far and away the most private of the top internet browsers, according to research at Trinity College Dublin in 2020. The following year, the New York Times did a piece on web browser privacy and recommended Brave as the best privacy browser.

Given Brave’s clear quality, the fact that its users also get paid for their attention is the icing on the cake. The Basic Attention Token provides a much-needed method of value transfer across this new digital advertising ecosystem. This way, it rewards both creators and consumers and eliminates parasitic intermediaries.

Additionally, BAT is already completely diluted, and its supply cannot be changed within its smart contract. Utility for the BAT token beyond payment for ads and tipping is also growing, with BAT already being used within the Brave wallet for discounted swap fees.

As per the Brave team’s roadmap, BAT will also be utilized for content pinning, file sharing with IPFS, eCommerce, and even search engines. All of these use cases for the BAT token are fleshed out, and it is likely that demand for BAT could soar, given that the supply remains unchanged.