According to a news statement from August 9, Reddit has joined with cryptocurrency exchange FTX as part of its long-standing effort to use blockchain to empower its communities, as reported by Cryptoslate.
Due to the cooperation, Reddit users will be able to utilise FTX Pay to pay for petrol costs associated with Community Points transactions. To reward active users who contribute high-quality content to the network, Reddit introduced blockchain-based Community Points coins in 2020. A measure of reputation and contribution to Reddit communities is the ERC-20 coins.
Reddit selected Arbitrum as its scaling partner in July 2021 in order to expand the system to millions of subreddits. The Reddit Community Points system is scheduled to be the first significant deployment on the new Arbitrum Nova blockchain, according to a news release issued on August 9 by Offchain Labs, the company behind Arbitrum. The blockchain has been optimised for gaming and social applications. The blockchain for Arbitrum Nova advertises cheap costs and excellent security.
Users can spend their earned Community Points in a variety of ways, including buying premium memberships, giving them as gifts, and even voting on governance matters.
Gas fees are necessary for such on-chain transactions. According to FTX, customers can buy Ethereum (ETH) using FTX Pay and their debit or credit card if they don’t have enough network fees.
Niraj Sheth, Staff Software Engineer at Reddit, said in a statement, “We are always working to empower communities and introduce new ways to use Reddit, and decentralized, self-sustaining blockchain technology allows us to do that. By working with FTX, we’re able to do this at scale.”
Reddit’s Community Points could be used in gaming ecosystems as a kind of currency if they are implemented on the Arbitrum Nova blockchain.
Reddit has long been experimenting with the notion of using blockchain to give its users a greater sense of ownership and empowerment.
Reddit introduced digital Collectible Avatars in July 2022, which were kept on Polygon, an Ethereum Layer 2 solution, with similar non-fungible tokens (NFTs). The purpose of the collections was to give purchasers the right to ownership while allowing artists to get paid for their work, including commission on subsequent sales.
(With insights from Cryptoslate)