The social media platform Reddit has collaborated with one of the biggest crypto exchanges, FTX, to integrate FTX Pay, a payment solution, with Community Points.
Reddit Community Points are a way to measure a user’s reputation in their communities. The points appear next to a username, which means everyone can see their “score.” Points are built on the Arbitrum Nova blockchain, and the “reputation” of the users can be seen on every platform the blockchain is recognized.
According to the official website, these points allow customization, encourage better content, and unlock special features.
The FTX Pay integration means the social media followers can buy Ethereum from crypto apps supported on Reddit and pay for the Community Points’ network fees with it. The features will be supported throughout different markets, including the U.S., the E.U., and Australia.
Reddit’s Software Engineer says that “decentralized, self-sustaining blockchain technology” lets the company “empower communities and introduce new ways” to use the platform. “By working with FTX, we’re able to do this at scale.”
Earlier this summer, Reddit launched an NFT avatar marketplace where its users are able to acquire blockchain-based profile pictures at a fixed rate and use them on and off the platform as an avatar. The avatars will also have a “glow-like effect” next to their comments.
FTX founder and CEO Sam Bankman-Fried recently shared his views on how cryptocurrencies can be used beyond investment, focusing on payment, market structure, and social media.
According to Bankman-Fried, payments are currently slow, costly, and complicated, and blockchain and cryptocurrencies can “allow anyone to create a wallet and use it to send and receive tokens–including USD pegged stablecoins.”
As for the market structure, the FTX founder pointed out that right now, there is a “settlement risk” because the markets are overwhelmed by transactions. Crypto solves this by creating a “simpler, more equitable, and less risky market structure and settlement,” Bankman-Fried wrote.
And when it comes to social media, the main problem is that “social media networks are isolated, not interoperable,” which means that activities on one platform are limited and visible only to the users of that same platform and nowhere else, leading to “fractured” conversations and interactions.
“Using an underlying public chain for messages” has made different networks compatible, Bankman-Fried believes, allowing moderation decisions and, therefore, diversity of opinions.
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