BAT System: Privacy, Transactions & Ad-Tech
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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.

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    Ad fraud

    Deceptive practices undermining genuine advertising efforts.

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    Blockchain marketplace

    A transparent digital marketplace using blockchain for transactions.

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    Attention as scarcity

    The concept that consumer attention is limited and valuable.

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    Historical advertising

    Early methods of promoting products dating back to ancient civilizations.

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    Distributed Ledger

    A decentralized database that records transactions across multiple locations.

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    BAT Token Incentives

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

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    State Channels

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

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    Zero-Knowledge Proof

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

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    Proof of Attention

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

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    Micropayment System

    A payment system designed for very small transactions.

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    Privacy in Transactions

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

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    Tokens for Targeted Advertising

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

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    Malvertising

    Malicious advertising that spreads malware to users.

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    User Complaints Cost

    Direct costs incurred by publishers due to user dissatisfaction.

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    Middleman Transactions

    Revenue lost to intermediaries in the ad ecosystem.

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    User Experience Deterioration

    Negative effects on user satisfaction from ads and latency.

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    Privacy Violations

    Breaches of user privacy through excessive data tracking.

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    Government Regulation

    Call for more government action to oversee advertisers.

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    Fraud in Advertising

    Deceptive practices like bots generating fake traffic.

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    Digital Ad Ecosystem

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

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    User Attention

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

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    Brave Browser

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

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    Opt-in Machine Learning

    User-accepted algorithms that learn preferences for tailored ads.

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    Microtargeting

    Advertising aimed at very specific segments of users.

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    Compensation for Attention

    Users receiving payment for the attention they give to ads.

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    Cryptographic Contracts

    Secure agreements that track user attention on a blockchain.

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    Brave Ledger

    A system used for transactions that prioritizes user privacy.

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    Decentralized Solutions

    Systems that operate without a centralized authority for transparency.

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    Publisher Recovery

    The fraction of ad spending that publishers eventually recoup.

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    Attention Tokens

    Tokens that users earn for engaging with publisher content.

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    Pac (BAT)

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

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    Reduced Advertising Costs

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

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    Coase Theorem

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

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    Virtual Currency Value Factors

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

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    User Engagement Proof

    Evidence provided to advertisers showing actual user interactions with ads.

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    Social Costs Mitigation

    Reduction of hidden costs associated with delivering attention to users.

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    Token Launch Maximum

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

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    Minimum Financing

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

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    ETH to BAT Exchange Rate

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

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    Token Distribution

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

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    User Growth Pool

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

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    Unsued BAT Policy

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

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    Budget Allocation for BAT Team

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

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    Administration Budget Allocation

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

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    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

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    Related Documents

    Basic Attention Token (BAT) Blockchain Based Digital Advertising PDF

    Description

    Explore the Basic Attention Token (BAT) system. Understand the importance of privacy, common transactions, and the impact of advertising technology (ad-tech) on users and publishers. Learn about Brave's intentions for BAT infrastructure and token use cases.

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