KnowYourCrypto #38: Basic Attention Token (BAT)

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If you are interested to the previous posts of this series, check it out here:

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What is it?

Basic Attention Token (BAT) is a utility token based on Ethereum technology for digital advertising and are used as a digital currency between publishers, users and advertisers on the Brave browser. The browser prevents advertisers from invading users space and privately measures users attention on certain websites. Brave browser is 2-8 times faster than Chrome and Safari.

How does it work?

This token aims to “save” the digital advertising system in this digital era when the privacy of internet users is heavily invaded. Under the current conditions, web users are publicly monitored by advertisers and browsers through various channels. User privacy is not respected by advertisers since browsers can keep track of which pages you visit often, which accounts you follow and in no time, blow the phone with a myriad of ads with your “interests” that they have discovered. This changes with the introduction of the Brave Browser which offers a private platform for its users. BATs are used by advertisers who trade in BAT to purchase advertising space from content creators and user attention from brave browser users. The amount of time spent on the ad is labeled ‘attention’ and users can also allow the ads to run on their devices at a small cost, offering BAT tokens. Publishers and content creators receive advertising revenue and user contributions or donations to create better content while users are rewarded with BATs for their attention (where users are privately “linked” to their interests, confirmed anonymously and presented with meaningful advertisements that they are interested in). Users have the choice of whether or not to opt-in to see the ads, which use a separate open source component. When users opt to receive ads on the platform, the ads will be shown based on their interests and confirmed anonymously. In November 2017, the founders of BAT announced that users could now give tokens directly to their favorite channels, thereby increasing user and publisher activity on Brave. But what is BAT token? BAT, an ERC20 token, is developed on a smart contract based on the Ethereum blockchain. The token uses Proof of Work (PoW) technology. However, to maintain network security, use Zero-Knowledge Password proof, (ZKP). This is a process that does not require password swapping when logging into your account. Lack of passwords means they shouldn’t be stolen. Users are required to demonstrate that they know some secret questions about the person on the other side.

Where to store it?

The best hot wallet for BAT are MyEtherWallet, TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger is the right choice.

Pros&Cons

*DISCLAIMER* These lists are subjective, it depends from person to person

Pros

Very fast and intuitive browser Interesting partnerships Great devs team

Cons

Low adoption Scalability issues As stated in its white paper, ‘in the early stage, the flow of BAT token will be regulated by Brave’. So, for now, it seems pretty centralized

submitted by /u/madpanda94
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