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<\/p>\nBy: Kirk\u00a0Kaczmarek<\/p>\n
<\/p>\n
Analysts have repeatedly claimed that blockchain technology would upend the way we transact.[1]<\/a> However, Bitcoin\u2019s precipitous downward spiral has seemingly stopped the blockchain revolution in its tracks.[2]<\/a> But blockchain enthusiasts may soon have cause to rejoice. Brave, an emerging privacy-focused web browser integrated with cryptocurrency may lay the groundwork for the heralded blockchain takeover of transactions.<\/p>\n Google is a paradox \u2013 a tech giant that brought in 32.5 billion dollars in Q2 2018 while providing most of its services for free; [3]<\/a> a user base that conducts 3.5 billion Google searches a day while distrusting the company itself.[4]<\/a> How does Google manage to turn these opposing forces into massive profits, and is its reign over the internet kingdom unassailable?<\/p>\n Google monetizes its services by treating its users as a product. Google collects data each time you use one of its services \u2013 everything from your name, birthday, gender, location, e-mail content, YouTube comments, the websites you visit, photographs and videos you save or view, contacts you add, calendar events, and more[5]<\/a> \u2013 and then stores it all in data centers.[6]<\/a> Next, Google uses this data to target advertisements to certain people.[7]<\/a> This targeting process involves contracting with an almost innumerable number of middlemen, driving up the cost of advertisements.[8]<\/a><\/p>\n Monetizing free services in this way has become the norm; social media is one visible example.[9]<\/a> Last March, Apple CEO Tim Cook scathingly rebuked this user-as-the-product business model.[10]<\/a> In response, Facebook CEO Mark Zuckerberg defended this practice as \u201cthe only rational model that can support building this service to reach people.\u201d[11]<\/a><\/p>\n However, another tech industry heavyweight is challenging the status quo.<\/p>\n Enter Brendan Eich, the inventor of JavaScript and a cofounder of Mozilla \u2013 the organization responsible for the popular Firefox web browser and Thunderbird e-mail client.[12]<\/a> In 2015, Eich founded and became CEO of Brave Software.[13]<\/a><\/p>\n Brave Software is developing an integrated two-pronged platform that Eich hopes will upend the current internet advertisement system by protecting user data, effectively targeting advertisements, and creating an entirely new marketplace for web-based advertising. The platform consists of the Brave web browser, and the Basic Attention Token (BAT), an Ethereum-based cryptocurrency associated with the value of web surfers\u2019 attention.<\/p>\n Ironically, the Brave browser is based Chromium and should support all the same functionality that Google Chrome provides upon its full release. However, Brave differentiates itself in three key ways: it (1) blocks all advertisements by default, giving users the choice to opt into advertisements, (2) blocks all trackers by default, again allowing users to opt in, and (3) is integrated with BAT.<\/p>\n Via browser extensions, popular web browsers today are already capable of blocking advertisements and trackers.[14]<\/a> However, this practice is unsustainable \u2013 without advertisement revenue, free internet services could not exist.[15]<\/a> BAT integration is Brave\u2019s solution to this problem.[16]<\/a><\/p>\n Consider watching a video on YouTube. Four entities are involved in this marketplace: (I) YouTube is the website publisher, (II) the person who made the video is the content creator, (III) the company who paid for the pre-video advertisement is the advertiser, and (IV) the viewer is the user. Brave offers a way for all four entities to benefit from the user\u2019s attention.<\/p>\n Publishers, content creators, and users obtain BAT wallets \u2013 a cryptocurrency key that acts like an online bank account specifically for transacting in BAT.[17]<\/a> Advertisers pay Brave in BAT to include advertisements in a catalogue.[18]<\/a> This catalogue periodically updates directly to the Brave browser.[19]<\/a> Rather than having the user send data to data centers, Brave keeps all the data stored locally on the user\u2019s device; no third parties ever gain access to user data.[20]<\/a> Should the user opt into advertisements, this data matches with the catalogue, and displays advertisements on the publisher\u2019s website.[21]<\/a><\/p>\n Brave takes a small cut of the BAT from the transaction.[22]<\/a> The content creators and publishers also take a cut. And finally, the user takes a cut as well.[23]<\/a> By sharing the value of the user\u2019s attention between the content creators, publishers, and users themselves, Brave creates a system that allows users to protect their data without obstructing the advertisement marketplace that keeps the internet free.[24]<\/a><\/p>\n If successful, Brave\u2019s impact on internet-based services and advertisements could be enormous. However, the effects rippling from a successful large-scale implementation of an Ethereum-based cryptocurrency is perhaps even more intriguing. By cutting out middlemen and contracting entirely on the users\u2019 devices, BAT highlights Ethereum\u2019s potential as a means to form contracts automatically on a massive scale. If BAT can accrue value based on the platform itself, not merely its speculative value as a cryptocurrency, then the long-awaited blockchain revolution may arrive at last.<\/p>\n <\/p>\n [1]<\/a> See <\/em>Andrew Rossow, How Blockchain Technology Can Help Power a New 21st<\/sup> Century Metropolis<\/em>, Forbes (Sep. 19, 2018, 10:37 am), https:\/\/www.forbes.com\/sites\/andrewrossow\/2018\/09\/19\/how-blockchain-technology-can-help-power-a-new-21st-century-metropolis\/#560242167d65<\/a>, Joichi Ito, Neha Narula, Robleh Ali, The Blockchain Will Do to the Financial System What the Internet Did to Media<\/em>, Harvard Business Rev. (March 8, 2017) https:\/\/hbr.org\/2017\/03\/the-blockchain-will-do-to-banks-and-law-firms-what-the-internet-did-to-media<\/a>.<\/p>\n [2]<\/a> See <\/em>Nathaniel Popper, Su-Hyun Lee, After the Boom: Hard Lessons for Cryptocurrency Investors<\/em>, The New York Times (Aug. 20, 2018) https:\/\/www.nytimes.com\/2018\/08\/20\/technology\/cryptocurrency-investor-losses.html<\/a>.<\/p>\n [3]<\/a> Alphabet Announces Second Quarter 2018 Results<\/em>, Alphabet Inc. (June 30, 2018)<\/p>\n https:\/\/abc.xyz\/investor\/pdf\/2018Q2_alphabet_earnings_release.pdf<\/a>.<\/p>\n [4]<\/a> See Google Search Statistics<\/em>, Internet Live Stats http:\/\/www.internetlivestats.com\/google-search-statistics\/<\/a>, Anuck Jesdanun, Ryan Nakashima, Don\u2019t Trust the Tech Giants? You Likely Rely On Them Anyway<\/em>, (June 11, 2018) https:\/\/phys.org\/news\/2018-06-dont-tech-giants.html;<\/a>\u00a0Robert Klara, How Bad Is It for Google and Facebook that Consumers Don\u2019t Trust Them?<\/em>, (Jan. 21, 2016) https:\/\/www.adweek.com\/brand-marketing\/how-big-problem-it-google-and-facebook-consumers-don-t-trust-them-169108\/<\/a>.<\/p>\n [5]<\/a> See Making It Easy to Understand What Data We Collect and Why<\/em>, Google https:\/\/safety.google\/privacy\/data\/<\/a>, Ben Popken, Google Sells the Future Powered By Your Personal Data<\/em>, (May 10, 2018) https:\/\/www.nbcnews.com\/tech\/tech-news\/google-sells-future-powered-your-personal-data-n870501<\/a>.<\/p>\n [6]<\/a> See Google Data Center <\/em>FAQ, (Mar. 16, 2017) https:\/\/www.datacenterknowledge.com\/archives\/2017\/03\/16\/google-data-center-faq<\/a>.<\/p>\n [7]<\/a> See We Do Not Sell Your Personal Information to <\/em>Anyone, Google https:\/\/safety.google\/privacy\/ads-and-data\/<\/a>.<\/p>\n [8]<\/a> See <\/em>Brave Software, \u00a0Basic Attention Token (BAT): Blockchain Digital Based Advertising<\/em>, 5 (2018) https:\/\/basicattentiontoken.org\/BasicAttentionTokenWhitePaper-4.pdf<\/a>.<\/p>\n [9]<\/a> See <\/em>Steve Campbell, How Do Social Networks Make <\/em>Money, MSNBC (April 30, 2010) https:\/\/www.makeuseof.com\/tag\/how-do-social-networks-make-money-case-wondering\/<\/a>.<\/p>\n [10]<\/a> See <\/em>Interview by Chris Hayes and Kara Swisher with Tim Cook, CEO, Apple, in New York, N.Y. (Mar. 27, 2018) https:\/\/www.recode.net\/2018\/4\/6\/17206532\/transcript-interview-apple-tim-cook-msnbc-kara-swisher<\/a>.<\/p>\n [11]<\/a> Alyssa Newcomb, Mark Zuckerberg Fires Back at Apple CEO\u2019s \u2018Extremely Glib\u2019 Comment<\/em>, NBC (Apr. 2, 2018) https:\/\/www.nbcnews.com\/tech\/tech-news\/mark-zuckerberg-fires-back-apple-ceo-s-extremely-glib-comment-n862056<\/a>.<\/p>\n [12]<\/a> See <\/em>Sebastian Anthony, Mozilla co-Founder Unveils Brave, a Browser that Blocks Ads by Default<\/em>, Ars Technica (Jan. 21, 2016. 9:07 am) https:\/\/arstechnica.com\/information-technology\/2016\/01\/mozilla-co-founder-unveils-brave-a-web-browser-that-blocks-ads-by-default\/<\/a>.<\/p>\n [13]<\/a> See Brave Software Raises $2.5 Million and Expands Technical Team<\/em>, The Business Journals (Nov. 17, 2015) https:\/\/www.bizjournals.com\/prnewswire\/press_releases\/2015\/11\/17\/SF59778<\/a>.<\/p>\n [14]<\/a> See <\/em>John Corpuz, Best Ad Blockers and Privacy Extensions<\/em>, Tom\u2019s Guide (Jan. 12, 2018) https:\/\/www.tomsguide.com\/us\/pictures-story\/565-best-adblockers-privacy-extensions.html<\/a>.<\/p>\n [15]<\/a> See <\/em>Brave Software, supra<\/em> note 8, at 1.<\/p>\n [16]<\/a> See id<\/em>.<\/p>\n [17]<\/a> See <\/em>Jennie, Understanding Basic Attention Token (BAT): An Easy Introduction<\/em>, Medium (December 4, 2017) https:\/\/medium.com\/@CryptoJennie\/understanding-basic-attention-token-bat-an-easy-introduction-42633b3a1ba<\/a>.<\/p>\n [18]<\/a> See id<\/em>.<\/p>\n [19]<\/a> See id<\/em>.<\/p>\n [20]<\/a> See id<\/em>.<\/p>\n [21]<\/a> See id<\/em>.<\/p>\n [22]<\/a> See id<\/em>.<\/p>\n