Please enable JavaScript.

Coggle requires JavaScript to display documents.

Basic Attention Token - Coggle Diagram

- - - - Say good bye to $30 gas fees for one transactionusing Ethereum🤮
        Say hello to micro transactions finding real utility. You will now be able to send 1 BAT with $0.002 in gas fees.
        Say good bye to KYC since BAT is going to be transferred directly to your BAT adress (on the Solana blockchain). —> no more virtual BAT.
        BAT meets DeFi with Earn possibilities and staking introduced this year or early next year according to Brendan Eich (—> BAT increases in price).
        Creators will be able to stake their BAT that they have received from users with BAT using DeFi. Remember that for DeFi to work gas fees has to be low (Solana blockchain is superb).
        Advertisers will want to buy BAT to secure ad investment buys since they will learn that BAT is an asset (—> BAT increases in price)
        https://www.reddit.com/r/BATProject/comments/qqa7im/bat_on_solana_blockchain_is_massive/
- - - - Can be theorised with Coase Theorem
        
        The widespread adoption of ad blocking tech adds a negative externality on the publishers as well. If everyone blocks ads, there will be little content left to exchange for user attention, as publishers go out of business. Should the user have to pay for blocking ads? Or should the advertisers need to pay the users for showing ads?
        
        A more simple example - If I get a flu shot, then there are external benefits. Less likely to spread flu, but there could be hundreds of people. Who exactly gets this external benefit? It's hard to measure. Do people have to pay me for the flu shot? or Do I have to pay others if I don't get a flu shot?
        https://www.youtube.com/watch?v=00HPak2RLlQ
      - Conclusion
        
        Markets can be efficient even when there are externalities when transaction costs are high & property rights are not clearly defined
        
        Answer - Coasean Bargain
        
        Private bargain will ensure that market equilibrium is efficient even if there are externalities
        
        But bargains often don't work, so the theorem suggests another solution - Creation of new markets
        
        Coasean problem in AdTech
        
        Property Rights = User Attention owned by User
        
        Information Asymmetry = B/w Advertisers & Publishers & users
        
        Transactions Costs = High to negotiate across the ecosystem
        
        *Coasean bargain b/w publishers & users, with a better outcome for advertisers
        
        Advertiser sends a payment in token along with ads to users in a locked state Xa
        
        As the viewer views the ads, the flow of payments unlocks, keeping part of the payment for their own wallet (Xu), and passing on shares of the payment to Brave (Xb) and passing the remainder on to the publisher
        
        Publisher revenue, Xp = Xa -Xu - Xb