BAT System: Privacy, Transactions & Ad-Tech

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a desirable characteristic of a fully distributed ledger for BAT?

  • Limited accessibility
  • Restricted scalability
  • Public accountability (correct)
  • Centralized control

What do state channels allow for in the context of BAT?

  • No anonymity guarantees
  • Multiple small transactions with anonymity (correct)
  • Direct tracking of users
  • Single large transactions

Which of the following is mentioned as offering stronger privacy guarantees?

  • State Channels
  • Ethereum
  • Zcash (correct)
  • Raiden

What type of system might be used, where small payments are made probabilistically?

<p>Lottery system (B)</p> Signup and view all the answers

Whose privacy is considered of primary importance in the BAT system?

<p>Browser customers (B)</p> Signup and view all the answers

What type of transactions are expected to be most common in a fully distributed BAT system?

<p>One-to-many and many-to-one (C)</p> Signup and view all the answers

According to Tim Wu, how did new media historically achieve commercial viability?

<p>By reselling captured attention in exchange for 'free' content. (B)</p> Signup and view all the answers

What was the initial promise of advertising technology ('ad-tech')?

<p>To create a more efficient marketplace for attention. (C)</p> Signup and view all the answers

What is Brave's intention regarding the BAT infrastructure?

<p>Make it free and open source (D)</p> Signup and view all the answers

Besides donating, what is another use case mentioned for BAT tokens?

<p>Very specific targeted advertising (D)</p> Signup and view all the answers

In theory, what did ad-tech propose to reward?

<p>Excellence in journalism and entertainment. (A)</p> Signup and view all the answers

What is one of the negative consequences users have experienced due to ad-tech?

<p>Increased malware. (C)</p> Signup and view all the answers

What have publishers generally experienced in terms of revenue due to the current state of ad-tech?

<p>Billions in revenue losses. (C)</p> Signup and view all the answers

According to Davenport and Beck, what term describes 'focused mental engagement on a particular item of information'?

<p>Attention (D)</p> Signup and view all the answers

What does AIDA stand for in the context of advertising?

<p>Attention, Interest, Desire, Action (D)</p> Signup and view all the answers

In what historical periods did the earliest forms of advertising appear?

<p>Ancient China, Egypt, and the Middle Ages in Europe (A)</p> Signup and view all the answers

What is the maximum amount of USD the Basic Attention Token (BAT) launch aimed to raise?

<p>$24 million (C)</p> Signup and view all the answers

What was the initial exchange rate between ETH and Basic Attention Tokens (BAT) at the time of the token launch?

<p>1 ETH = 6,400 BAT (C)</p> Signup and view all the answers

How many Basic Attention Tokens (BAT) were allocated to Brave during the token distribution?

<p>200 million BAT (C)</p> Signup and view all the answers

How many Basic Attention Tokens (BAT) were allocated to the User Growth Pool?

<p>300 million BAT (B)</p> Signup and view all the answers

What is the maximum amount of BAT that early adopters of Brave could receive from the user growth pool?

<p>5 BAT/user (B)</p> Signup and view all the answers

According to the budget allocation, what percentage of the raised ETH was allocated to the BAT team?

<p>58% (A)</p> Signup and view all the answers

What percentage of the budget was allocated to administration?

<p>10% (A)</p> Signup and view all the answers

What is a direct cost faced by publishers when malvertising spreads?

<p>User complaints (A)</p> Signup and view all the answers

What is a hidden cost associated with the complexity of the advertising ecosystem?

<p>Revenue loss from middleman transactions (D)</p> Signup and view all the answers

How do data transfers by middle players affect user experience?

<p>They add latency and consume data (A)</p> Signup and view all the answers

What do economists compare violations of user privacy to?

<p>Environmental pollution (B)</p> Signup and view all the answers

According to Pew Research, what percentage of adults believe users have lost control of how personal information is collected?

<p>91% (C)</p> Signup and view all the answers

What do a large majority of adults believe the government should do regarding advertisers?

<p>Regulate more (A)</p> Signup and view all the answers

What is the purpose of malicious bots in the advertising marketplace?

<p>Generate fake traffic and fool advertisers (B)</p> Signup and view all the answers

What do bots siphon from the ad industry each year?

<p>Billions of dollars (C)</p> Signup and view all the answers

What is a primary benefit of involving the browser in measuring user interaction with websites?

<p>It provides more accurate measures of user attention. (A)</p> Signup and view all the answers

What does the Brave browser contain for assessing user interests?

<p>Opt-in and transparent machine learning algorithms (B)</p> Signup and view all the answers

What is a key advantage of tailoring ads to individual user preferences?

<p>It allows advertisers to target precise microsegments. (D)</p> Signup and view all the answers

What is a benefit for the user when ads are tailored to their individual preferences?

<p>The user receives more relevant ads. (A)</p> Signup and view all the answers

What is the novel idea presented in the text regarding user attention?

<p>Users should be paid directly for their attention. (A)</p> Signup and view all the answers

What makes economic sense regarding user attention?

<p>Users should be compensated for their attention. (A)</p> Signup and view all the answers

What technology is used to confirm that user attention is directed towards the publisher?

<p>Cryptographic contracts built on blockchain (D)</p> Signup and view all the answers

What feature maintains user privacy within the Brave Ledger?

<p>Privacy and deterministic user anonymity (A)</p> Signup and view all the answers

In the proposed advertising scheme, how does the advertising spend received by the publisher compare to their current proportion?

<p>Much larger (C)</p> Signup and view all the answers

What is the impact on users viewing more publisher content because of BAT?

<p>Encourages users (D)</p> Signup and view all the answers

In the BAT ecosystem, how is the advertiser's spending for a given amount of attention expected to compare?

<p>Much Smaller (C)</p> Signup and view all the answers

What do advertisers NOT need to pay for in the BAT ecosystem?

<p>Social cost to middlemen (A)</p> Signup and view all the answers

What does the use of the BAT system offer to browser users, advertisers, and publishers?

<p>Lower costs (D)</p> Signup and view all the answers

What benefit do publishers receive from the BAT system?

<p>Larger share of advertising revenues (D)</p> Signup and view all the answers

What is one of the benefits users receive from the BAT system?

<p>A share of advertising revenues (D)</p> Signup and view all the answers

What are the three major factors postulated to determine the value of virtual currencies?

<p>Utility, speculation, user adoption (A)</p> Signup and view all the answers

Flashcards

Ad-tech

Advertising technology intended to optimize the market for attention.

Attention economy

An economic model where consumer attention is a scarce resource.

AIDA model

A marketing framework: Attention, Interest, Desire, Action.

User privacy loss

Deterioration of individual privacy due to ad-tech practices.

Signup and view all the flashcards

Ad fraud

Deceptive practices undermining genuine advertising efforts.

Signup and view all the flashcards

Blockchain marketplace

A transparent digital marketplace using blockchain for transactions.

Signup and view all the flashcards

Attention as scarcity

The concept that consumer attention is limited and valuable.

Signup and view all the flashcards

Historical advertising

Early methods of promoting products dating back to ancient civilizations.

Signup and view all the flashcards

Distributed Ledger

A decentralized database that records transactions across multiple locations.

Signup and view all the flashcards

BAT Token Incentives

Reasons for publishers, advertisers, and users to engage with the BAT token system.

Signup and view all the flashcards

State Channels

A technology allowing multiple transactions with privacy guarantees off the main blockchain.

Signup and view all the flashcards

Zero-Knowledge Proof

A cryptographic method allowing one party to prove knowledge without revealing the information itself.

Signup and view all the flashcards

Proof of Attention

A mechanism rewarding users for viewing ads instead of traditional mining methods.

Signup and view all the flashcards

Micropayment System

A payment system designed for very small transactions.

Signup and view all the flashcards

Privacy in Transactions

Ensuring that users' and advertisers' personal data remains confidential during transactions.

Signup and view all the flashcards

Tokens for Targeted Advertising

Using tokens to facilitate specific advertising aimed at users based on preferences.

Signup and view all the flashcards

Malvertising

Malicious advertising that spreads malware to users.

Signup and view all the flashcards

User Complaints Cost

Direct costs incurred by publishers due to user dissatisfaction.

Signup and view all the flashcards

Middleman Transactions

Revenue lost to intermediaries in the ad ecosystem.

Signup and view all the flashcards

User Experience Deterioration

Negative effects on user satisfaction from ads and latency.

Signup and view all the flashcards

Privacy Violations

Breaches of user privacy through excessive data tracking.

Signup and view all the flashcards

Government Regulation

Call for more government action to oversee advertisers.

Signup and view all the flashcards

Fraud in Advertising

Deceptive practices like bots generating fake traffic.

Signup and view all the flashcards

Digital Ad Ecosystem

The interconnected network of ad servers, platforms, and players.

Signup and view all the flashcards

User Attention

The focus and engagement a user gives to content on a website.

Signup and view all the flashcards

Brave Browser

A web browser that focuses on user privacy and personalized ads.

Signup and view all the flashcards

Opt-in Machine Learning

User-accepted algorithms that learn preferences for tailored ads.

Signup and view all the flashcards

Microtargeting

Advertising aimed at very specific segments of users.

Signup and view all the flashcards

Compensation for Attention

Users receiving payment for the attention they give to ads.

Signup and view all the flashcards

Cryptographic Contracts

Secure agreements that track user attention on a blockchain.

Signup and view all the flashcards

Brave Ledger

A system used for transactions that prioritizes user privacy.

Signup and view all the flashcards

Decentralized Solutions

Systems that operate without a centralized authority for transparency.

Signup and view all the flashcards

Publisher Recovery

The fraction of ad spending that publishers eventually recoup.

Signup and view all the flashcards

Attention Tokens

Tokens that users earn for engaging with publisher content.

Signup and view all the flashcards

Pac (BAT)

The value indicating the efficiency of token acquisition for user attention, often zero or negative.

Signup and view all the flashcards

Reduced Advertising Costs

Advertisers spend less due to fewer middleman fees in the ecosystem.

Signup and view all the flashcards

Coase Theorem

A principle suggesting that under certain conditions, parties can negotiate outcomes without transaction costs.

Signup and view all the flashcards

Virtual Currency Value Factors

Components that determine the value of virtual currencies including utility, speculation, and adoption.

Signup and view all the flashcards

User Engagement Proof

Evidence provided to advertisers showing actual user interactions with ads.

Signup and view all the flashcards

Social Costs Mitigation

Reduction of hidden costs associated with delivering attention to users.

Signup and view all the flashcards

Token Launch Maximum

The maximum goal of $24 million USD through ETH sales.

Signup and view all the flashcards

Minimum Financing

The minimum amount needed is $5 million USD for the token launch.

Signup and view all the flashcards

ETH to BAT Exchange Rate

1 ETH equals 6,400 Basic Attention Tokens (BAT).

Signup and view all the flashcards

Token Distribution

Breakdown of BAT allocation: 13.3% for Brave, user growth pool of 300 million BAT, and 1 billion for public use.

Signup and view all the flashcards

User Growth Pool

A fund to incentivize user participation in the BAT ecosystem, offering up to 5 BAT per user.

Signup and view all the flashcards

Unsued BAT Policy

Unused BAT after 6 months returns to the user growth fund for new users.

Signup and view all the flashcards

Budget Allocation for BAT Team

58% of the budget is allocated to the BAT team for development.

Signup and view all the flashcards

Administration Budget Allocation

10% of the total budget is designated for legal and administrative costs.

Signup and view all the flashcards

Study Notes

Basic Attention Token (BAT)

  • Digital advertising is inefficient, with excessive intermediaries, user tracking and opaque cross-party sharing
  • Users experience malicious advertisements and privacy violations. Mobile ads result in high data costs (e.g., $23/month) and decreased battery life (e.g., 21%)
  • Advertising revenue has fallen by 66% for traditional publishers in a decade, adjusted for inflation.
  • BAT is a decentralized, blockchain-based digital ad exchange
  • BAT rewards users for attention while protecting privacy
  • BAT removes the drawbacks of current ad networks (e.g., fraud, privacy violations, malvertising)
  • BAT facilitates better conversion for advertisers and higher yields for publishers

Attention-Based Economics on Blockchain

  • Attention is a valuable commodity
  • The existing advertising ecosystem is complex, inefficient and opaque
  • Users face privacy violations and inflated charges
  • Publishers lose revenue and struggle to control their revenue streams
  • BAT seeks to foster a fair and transparent attention marketplace

Basic Attention Metrics (BAM)

  • BAM measures user attention in real-time, focusing on user engagement
  • Attention is measured through browser activity like time spent on the page
  • The new system enhances the accuracy of attention measurement to improve targeting and conversion rates

Token Technology Overview

  • BAT (Basic Attention Token) is based on Ethereum
  • Used as a currency or payment mechanism
  • Allows for secure and transparent transactions in digital advertising
  • BAT can facilitate specific or targeted advertising given the identity of the user
  • BAT can be used to purchase premium content, digital goods and/or other services
  • BAT tokens are transferable

Key Team Members

  • Brendan Eich: CEO, co-founder of Brave, created JavaScript, and co-founded Mozilla
  • Brian Bondy: Lead Developer, previously worked at Khan Academy, Mozilla and Evernote
  • Scott Locklin: Senior Engineer with expertise in machine learning and quantitative finance
  • Others include experienced engineers in areas such as design, communication, and engineering

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

More Like This

Memory and Attention Basics Quiz
24 questions
Atención Sanitaria Básica 2° Parcial
40 questions
Basic Attention Token (BAT) Cryptocurrency
48 questions
Use Quizgecko on...
Browser
Browser