The popular forum stated on Thursday that it is installing Layer 2 scaling technology Arbitrum in an effort to boost its Community Points — the cryptocurrencies used as rewards in two of its subreddits.
The tokens will be moved from a testnet to the main Ethereum blockchain, with transactions handled by the Abritrum scalability solution. This will allow for more transactions while keeping costs low.
In a statement, the Reddit team said, “You’ll notice transactions move significantly faster, and once you’ve formed a Vault, you won’t have to keep claiming Moons/Bricks every month.” “They’ll appear out of nowhere in your vault!”
Introducing the blockchain to Reddit
As part of its Community Points program, the popular online forum created the two Ethereum-based coins Moons ($MOONS) and Bricks ($BRICKS) last year. The tokens might be earned by providing quality content to the /r/Cryptocurrency and /r/FortniteBR subreddits (in theory).
The tokens were created on the Ethereum blockchain’s testnet. Instead of putting additional strain on the main blockchain, this was done to lower fees and allow for a large number of transactions.
Shortly after, Reddit launched its “Scaling Bake-Off,” allowing developers to submit scaling proposals for their new coins in the hopes of moving them to the Ethereum mainnet in some manner. After more than a year, the platform has decided to scale with Arbitrum, the competition winner.
A Layer 2 solution is called as Arbitrum. This means it relieves the main (Layer 1) blockchain, in this case Ethereum, of the burden of processing transactions on its behalf. As a result, the blockchain can handle a bigger number of transactions while charging cheaper fees.
Why is Arbitrum used?
Arbitrum stood out to the Reddit team for various reasons, according to the team.
Offchain Labs developed the project, which is completely decentralized and derives its security and finality from the main blockchain (transactions are essentially uploaded to the blockchain every so often, ensuring they eventually reach the mainnet). Users will have complete ownership over their Community Points and other digital assets because there are no centralized links.
Arbitrum, in addition to being entirely decentralized, is developer-friendly and has “broad ecosystem support,” according to the Reddit team, with the potential to grow even further.
Users will be unable to utilize their tokens while the team migrates to the Arbitrum network, which might take several hours, according to the team.
To store their tokens, users are recommended to use the Reddit app’s Vault function. Members who store their tokens in other wallets will be able to utilize a tool to transfer them to the scaling network after the migration is complete.