It is a token for the decentralized ad exchange. BAT connects advertisers, publishers, and users, creating a new, efficient marketplace.
The token is based on Ethereum technology, an open-source, blockchain-based distributed computing platform with smart contracts. The token is derived from – or denominated by – user attention. User attention is anonymously monitored in the Brave browser and publishers are rewarded accordingly with BATs. Users also get a share of BATs for participating.
“Attention is a commodity, like wheat, pork bellies, or crude oil. Existing industries have long depended on it to drive sales. And the new industries of the twentieth century turned it into a form of currency they could mint. Beginning with radio, each new medium would attain its commercial viability through the resale of what attention it could capture in exchange for its ’free’ content.”
The ad-tech ecosystem is a bewildering variety of middlemen & complexity (agencies, trading desks, demand-side platforms, network exchanges, yield optimization, rich media vendors etc):
User attention is anonymously monitored in the Brave browser, a fast open source, privacy-focused browser that blocks invasive ads and trackers, and contains a ledger system that anonymously measures user attention aggregate to accurately reward publishers.
Brave cuts out all third-party trackers and middle-players, while providing publishers with a substantially larger revenue share than they are receiving in existing marketplaces. Brave thus aims to reset the online ad-based Web ecosystem, giving advertisers, publishers and customers a win-win solution whose components and protocols can become future Web standards.
The high-level concept is of monetizing attention is:
The advertiser sends a payment in token along with ads to users in a locked state Xa.
As the users view the ads, the flow of payments unlocks:
The token collected can be used to pay for premium access or to change it for ETH.