- Reddit has selected Arbitrum L2-solution to scale its Community Points Incentive for rewarding talented users with ERC-20 tokens (points).
- Ethereum has gained 3.1 percent value in the last 24-hours to trade at $2,050 at the time of press.
Social media giant Reddit has selected Arbitrum, a layer 2 Ethereum solutions provider, to scale its community points program. Millions of new users are expected to join the Ethereum network.
The announcement made on July 22, stated that the scaling network will be implemented on Rinkeby testnet, before launching onto the Ethereum mainnet. With its 330M monthly active users, it would be inefficient to run the program directly on the base layer. The announcement, however, did not specify how long the testing phase would last. Reddit stated that it chose Arbitrum due to its decentralization, broad ecosystem support, and developer friendliness.
“Today’s launch is a big step forward, but our work is far from done. Our goal is to cross the chasm to mainstream adoption by bringing millions of users to the blockchain,”Reddit stated.
Essentially, Arbitrum technology provides a cluster of Ethereum scaling solutions. In this way, the network enables high throughput, cost-efficient smart contracts while maintaining security and credibility.
Arbitrum features optimistic rollups, which slightly alter the zk-rollups consensus principle. Rather than verifying every single transaction, the network assumes that all are correct. Interventions only happen when users note an incorrect transaction by submitting “fraud-proof.”
Reddit Scaling Community Points
Initially, two communities, r/CryptoCurrency, and r/FortNiteBR came up with the incentive in May 2020. The pair consists of communities that, as their names suggest, are cryptocurrency and Fortnite game enthusiasts. Community Points are representative of user’s ownership of “their favorite communities.”
Additionally, the system rewards talented users for their work through tips and transfers in the form of ERC-20 tokens. These points can then be used to access special content and premium features. The points will likely have significant value, and therefore, owners can transfer or trade them too. Points will be stored on Reddit’s Ethereum wallet implementation, the Vault, and users will have full control of their points.
In February, Reddit and the Ethereum Foundation partnered for “The Great Reddit Scaling Bake-off”, for scaling its Community Points system. They invited various teams to each present a unique project towards the same goal and Off-chain Labs Arbitrum impressed most.
Reportedly, Reddit begun tests on its Ethereum-based point rewarding system in April. At the same time, Ethereum co-founder Vitalik Buterin suggested conducting decentralized moderation using smart contracts.
Ethereum price reaction
Ethereum prices have continued to record a steady two-day momentum. At writing time, ETH was trading at $2,050.84, having added 3.1 percent value in the past 24-hours, according to our data. ETH has gained about 8 percent value in the past week. Prices have however been halved from their record mid-May high of $4,350. Fundamentally, the coin continues to follow the path of its leader Bitcoin, despite recent bullish news.