Dilemma between interests and privacy! Google to disable third-party cookies for two years, where is the solution for the advertising economy?

Google recently announced that it will gradually phase out third-party cookies in Chrome browser by 2020. Despite there being privacy-focused browsers available, with Chrome having over 60% of users, this move will have a significant impact on the online advertising industry. Will token economies based on blockchain be a complementary solution for online advertising?

Tech Giants Address Privacy Issues, Economic Solutions Still Needed

A cookie is a piece of data stored on a user's device by a website to identify the user. Cookies have been criticized for being used to track users for digital advertising or for privacy violations through malicious attacks.

Google announced that it will phase out third-party cookies within two years. Starting in February this year, it will implement new SameSite rules, restricting cross-site tracking technologies. Cookies identified as third-party will only be accessible via HTTPS connections.

However, with Chrome holding over 60% of the browser market share, the impact on the advertising industry and publishers must be considered. Ad publishers often rely on cookies to collect user data for targeted advertising.

To address this issue, Google introduced the "Privacy Sandbox" project in August last year, aiming to reduce user data sharing while still being able to show ads to customers. Starting next year, some advertisers and publishers will be moved to the new system under development.

Justin Schuh, Chrome's technical director, stated:

This is our strategy for reshaping web standards with default privacy protection.

Although competitors like Firefox and Safari have long limited third-party cookie functionality, Schuh believes users should not have to understand different details across different browsers. Google also stated that this move could disrupt the web ecosystem and is driving the industry to find solutions.

Schuh mentioned that the current solution is not clear and requires collaboration. They welcome any solutions that prioritize privacy and security and meet expectations.

What Ideas Does Token Economics Based on Blockchain Provide?

Will Brave, the browser company that often criticizes Google for neglecting user privacy, be the solution?

Brave is a browser that integrates cryptocurrency rewards. Its default mechanism blocks third-party cookies, trackers, ads, and pop-ups. The Basic Attention Token (BAT) integrated with Brave offers several economic channels for ads and websites. Users can choose the amount of ads they are willing to see through the browser and earn cryptocurrency as a reward for viewing ads. Websites heavily reliant on ad revenue and content can also accept direct contributions from users.

Brave has reportedly reached 40 million cumulative downloads on Android and currently ranks as the top browser in Japan's communication category.

In recent years, we have seen cases of introducing decentralization and privacy-focused concepts by banks and governments. With the advancement of blockchain and cryptocurrency, there may be a greater impact in the near future.

Related Reading

• Privacy browser Brave officially launches rewards program on IOS version
• Brave browser's user base in Japan continues to grow

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