In more technical language, privacy badger keeps track of the third-party ads that use uniquely identified cookies. It keeps records of which cookies are being used and if it finds that it’s used for tracking your activity then it tells the site not to load that ad next time the site opens. EFF doesn’t tell it as an ad blocker but rather a security add-on. It’s main aim is not to block ads but to block only that ads that may harm your privacy. Because, some scripts used in sites may be used for better functionality of the site. So, it takes care of not to block such scripts.
The extension also shows that which elements of the site are tracking and which are not. When you click on the icon (Probably on the right side of the address bar if you’re using chrome), it’ll show you link to the scripts with color sliders that show if that specific link is safe or not. Red shows that the link (or the script) is completely blocked(means not loaded) because badger found there were tracker cookies. The Yellow slider shows it’s not completely blocked. Means the tracker cookies will be present but badger is not letting the cookie send back the data to the tracker’s server. Green means the script is safe and doesn’t use any tracker cookie. You can slide the color slider to change it according to your preferences. If you think that some necessary script is blocked that you can slide according to yellow or green. Yellow will load the script but will not send data to tracker’s server. So, you can switch to yellow if you find some necessary script is marked red.
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So, in short privacy badger secures your privacy and don’t let the trackers track your activity. If you’re seriously concerned of your privacy you can use ad-blockers available at the chrome web store. You can download Privacy badger from below given links.