Reddit has chosen Arbitrum, a supplier of layer 2 Ethereum technology, to grow its community points system. The Ethereum network is anticipated to attract millions of new participants. The scaling system will be deployed on the Rinkeby testnet before being launched on the Ethereum mainnet, according to the statement issued on July 22.
It would be impractical to execute the application straight away on the base layer with its 330 million monthly active users. Nevertheless, the statement did not state how prolonged the trial phase would run. Arbitrum was chosen by Reddit on the basis of decentralization, extensive ecosystem backing, and developer ease, according to the company.
“Today’s debut is a significant step ahead, but we still have a long way to go.” Reddit remarked, “Our objective is to bridge the gulf between mainstream usage and blockchain usage by attracting millions of customers to the blockchain.” Arbitrum technology is basically a combination of Ethereum scaling methods. As a result, the network has high processing capabilities, low-cost smart contracts while still preserving safety and trustworthiness.
Optimistic rollups are used in Arbitrum, which significantly change the zk-rollups consensus premise. Instead of validating each trade, the network thinks that they are all accurate. Fixes are carried out only when consumers report a fraudulent transaction by presenting “fraud-proof” information. In May 2020, two groups, r/CryptoCurrency and r/FortNiteBR, proposed the reward. The two groups are made up of Bitcoin and Fortnite game fans, as their titles imply. Users’ stake in “their favorite communities” is represented by Community Points.
Furthermore, the system recognizes and compensates exceptional users via tips and remittances in the kind of ERC-20 tokens. These credits can then be redeemed for premium features and services. Because the points are expected to be valuable, owners will be able to swap or start trading them. Users will have absolute control over their points, which will be kept on Reddit’s Ethereum wallet platform, named the Vault.
Reddit and the Ethereum Foundation teamed together in February for “The Great Reddit Scaling Bake-off,” a competition to scale Reddit’s Community Points program. They asked a variety of groups to showcase their own distinct projects aimed at the same objective, and Off-chain Labs Arbitrum stood out the most.
According to reports, Reddit started testing its Ethereum-based point incentive program in April. At the same time, Ethereum co-founder Vitalik Buterin proposed utilizing smart contracts to perform decentralized moderation. The value of Ether had remained in a solid two-day upward trend. Notably, ETH was trading at $2,050 while writing this article, up 3.1% in the last 24 hours.
