I have been writing about the Brave browser and what I call the Brave ecosystem for several years now. This is an update based on a nice analysis I found on a stock market site. The connection between those who offer analyses of investment issues and those of us who explore issues related to technology may not be obvious. The intersection here is BAT – the cryptocurrency that plays a key role in the Brave ecosystem.
The development of Brave (a browser-based on chromium that works very much like the Chrome browser) and the Brave ecosystem were based on issues many find troubling in the Internet as we know it. The issues are wrapped up in the personal data collected to better target ads to get ad companies to compensate content and service providers. Users get this content and services without having to spend money because of this ad model. What users lose is their personal data and perhaps more important users are being shaped by some online services into spending their attention in ways that may result in their being misled about the world around them.
A common response to an awareness of this dilemma is that more and more Internet users are taking advantage of ways to block ads. The article I cite claims 60% use some form of ad blocker and this percentage is rising. This reality challenges the entire business model for the “free” internet which has unknown consequences. As a content author or service provider, this trend clearly predicts a decline in revenue that funds infrastructure and labor investments.
Now for BAT. BAT stands for Basic Attention Token and is a cryptocurrency. I would think any micropayment system would work, but I understand that a cryptocurrency allows a degree of anonymity some think is important. Users can purchase BAT or earn BAT for accepting ads Brave offers as a replacement for the traditional ads that it blocks. The Brave ads don’t depend as much on the collection and sharing of personal information. If content/service creators register with Brave and if Brave users accumulate BAT in one way or another and if users allocate some BAT as compensation to content creators, users continue to have access, companies can continue to advertise, and users are less exposed to targeted ads. I admit there are many ifs, but the Brave model is a workable model if the multiple parties buy-in.
I do see changes in the models used by other browsers, but I don’t see any of these models offering compensation to creators.
What is in it for Brave? They take a cut of the ad revenue. What is in it for Internet users? They can be compensated for their attention. Hopefully, to make the entire model work, they will share some of this compensation rather than keep it.