Reddit takes another step towards crypto. After the launch of an NFT series, there was now press statement announced a partnership with FTX Pay. Thanks to the integration, users in the US, EU, Australia and other regions can buy ETH via selected Reddit apps. The FTX payment service provides the infrastructure.
However, the partnership also opens up new opportunities for Reddit’s internal rewards system, known as “Community Points.” This is a cryptocurrency based on the Arbitrum blockchain that can be used to reflect the reputation of a community or a contribution. Arbitrum, in turn, is a scaling solution for ETH.
Specifically, users should be able to use their community points to pay network fees for transactions, for example.
Reddit Community Points
Reddit’s “Community Points” are a measure of reputation for its users.
On subreddits, dots are displayed next to usernames, so the biggest contributors in the community stand out from the rest.
These points are on the “Arbitrum Nova” blockchain, a network created by the same creators as Arbitrum, Offchain Labs. The purpose of this new network is to make transactions even cheaper than those of Arbitrum One.
As Reddit highlighted in a joint statement with FTX, the advantage of the dots being on Arbitrum Nova is that users can take their “good reputation” to various parts of the internet.
Now, through the FTX Pay payment service, users can buy Ether to pay network fees directly on Reddit apps.
“We are excited to partner with Reddit to continue their work to empower online communities to harness the power of blockchain. FTX Pay’s payment and exchange infrastructure integrates with Reddit Community Points, making the customer experience a more seamless process,” said Sam Bankman-Fried, CEO of FTX.
Meanwhile, Reddit team software engineer Niraj Sheth said the social network is always working to empower communities and introduce new ways to use the online forum.
“And decentralized, self-sustaining blockchain technology allows us to do that. Working with FTX, we are able to do this at scale,” added Sheth.
It is worth noting that Reddit has been involved in the crypto and blockchain industry for many years. The platform even allowed users to pay for their premium membership in BTC. But removed the option in the year 2018.
As stated above, Reddit’s points are in Arbitrum Nova. The new network was announced on Tuesday (9) by Arbitrum Offchain Labs.
According to the company, Arbitrum Nova will serve as the premier Web 3.0 gaming solution for social apps. In addition to Reddit, other companies participated in the launch of the network. This includes, for example, Google Cloud, Consensys and QuickNode. They participated in the launch by becoming inaugural members of Nova’s “Data Availability Committee”.