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Everything you need to know about Basic Attention Token (BAT)

The rise of the internet has given way to digital advertising, serving as a foundation for businesses to thrive online. Today, entrepreneurs can post advertisements using videos, blogs and social media posts across online platforms. With this, you can now drive traffic to your website, establish brand awareness and build a loyal customer base with just a few taps.

However, as digital advertising gains more traction over the years, its weak spots are getting more clear-cut as well. For instance, online users are continuously bombarded with annoying pop-up ads containing trackers that can violate anyone’s privacy. Publishers also become victims of fraud, preventing them from monetizing their content.

There’s no doubt that the system of online advertising needs a lot of rearrangement. To address and solve this recurring issue, a new fix that runs on blockchain technology has been developed: the Basic Attention Token (BAT). 

To know more about this digital advertising token, continue reading below!

What is Basic Attention Token?

Developed by Mozilla and Firefox co-founder Brendan Eich in 2017, the Basic Attention Token (BAT) is an Ethereum-based cryptocurrency that aims to eliminate fraud in digital advertising. During its release on the market, it raised a total of USD$35,000,000 in just thirty seconds. 

Its goal is to fairly distribute advertising money between users, publishers and advertisers of online ads that is both decentralized and transparent. Moreover, BAT also aims to give internet users ads that are customized according to their interests without compromising their privacy rights.

How does it work?

The Basic Attention Token utilizes a web browser called Brave, a free, open-source and privacy-centred platform that blocks third-party trackers and ads. 

Using blockchain technology, the Brave browser securely and anonymously tracks user experience which is then converted to rewards for online publishers. Meaning to say, the more engaging a publisher’s content is, the bigger their profit becomes. This is done by recording and calculating the time and pixels of an advertisement that is viewed by a user.

Through in-device machine learning, Brave matches the products a user is most likely to purchase. Moreover, to ensure that your data is well-protected and secure, the data gathered by the browser will remain encrypted and stored on your device alone. 

Throughout the process, the Basic Attention Token (BAT) serves as the Brave cryptocurrency. Using smart contracts, advertisers will send advertisements that include token payments to online users. Once a user clicks and views the ad, they will receive a part of that token payment. The remainder of the payment will be allocated to Brave and the host of the advertisement as well.

Basic Attention Token supply

There are 1,500,000,000 Basic Attention Tokens in circulation with a current market capitalization of US$1,675,539,319. As of writing, it is valued at US$1.12. 

Moreover, once the entire BAT user growth pool has run out, no more BAT tokens are allowed to enter the circulation anymore. Unless the network switches to a new token smart contract, the total supply cannot be increased.

How to buy Basic Attention Token 

If you’re interested to join the Basic Attention Token ecosystem, here’s how you can purchase tokens:

Step 1: Open an online account

Before you can start trading BAT, you need to open an online account first. However, since BAT was only launched in 2017, only selected crypto exchange platforms will allow you to trade this token. Here’s a list of sites to consider:

  • Binance
  • SoFi
  • eToro
  • KuCoin
  • Paybis

Make sure that you’ve already verified that the payment methods are secure before starting your registration process. Keep in mind that some platforms may also charge you additional fees for commission for every transaction made on the platform, so be extra careful.

Step 2: Pick a crypto wallet

Although this step is optional, picking a crypto wallet can help you store your coins and tokens safely. It lets you send and receive digital currencies on various blockchain platforms, following security protocols to keep your digital assets protected. 

There are two types of crypto wallets you can choose from: hot wallets and cold wallets. If you opt for the former, you should stay connected to the Internet to access and manage your BAT. However, since a hot wallet is connected to the Internet, your funds may be vulnerable to security breaches and system attacks.

On the other hand, a cold storage wallet is a physical hardware that does not need the Internet for access. This makes it the more ideal option if you’re concerned about security issues. However, once you forget your password, you will lose access to your digital assets, so make sure to write it down.

Where can you spend your BAT tokens?

Once you’ve gained enough BAT, you can use them to purchase things using the Brave browser. For example, you can utilize them for donations to content creators and buy premium articles and products, as well as high-quality data services and images. 

In some cases, the BAT ecosystem can even allow you to use your tokens for comments and voting in online forums. Alternatively, you can swap your BAT for fiat or other digital currencies on crypto exchange platforms. 

The developers are also planning to collaborate with Tap which will allow users to swap their tokens for Amazon and Uber gift cards, restaurant certificates and hotel discounts. 

Moreover, since BAT runs on the Ethereum blockchain, it can be used for transactions outside its own network. You can use it for liquidity pools, derivatives and lending on decentralized finance (DeFi) platforms such as Aave and Compound. BATs can also be used in blockchain gaming and non-fungible tokens (NFTs).

Why choose Basic Attention Token? 

With a rapidly increasing user base in the market since its launch in 2017, the Basic Attention Token offers top-notch security and incentives to publishers and users alike. 

It does not only focus on trading but addresses the broken system of digital advertising filled with intrusive ads and fraud. Now, users and advertisers can enjoy an efficient and transparent advertising space with better privacy, quality advertisements and a fair distribution of revenues, among other things.

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