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Reddit is scaling its two tokens using Layer 2 solution Arbitrum

Reddit is scaling its two tokens using Layer 2 solution Arbitrum
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Reddit is publishing Arbitrum’s second-tier scaling solution in an effort to upgrade its community points – crypto tokens used as rewards – in two subreddits – the popular forum announced Thursday.

Initially, the integration will remain on the testnet, but it is a step towards Reddit’s plan to move tokens from the testnet to the main Ethereum blockchain via Abritrum. It will enable more transactions while still having low costs.

“You will notice that transactions happen faster, and once the Vault is created, you won’t have to keep claiming moons/bricks every month,” the Reddit team said in a statement. “They will appear in your pantry like magic!”

Bring the blockchain to Reddit

Last year, the popular online forum launched Monday Ethereum-based tokens, Moons ($MOONS) and Bricks ($BRICKS), as part of the Community Points Program. Users in the /r/Cryptocurrency and /r/FortniteBR subreddits can earn tokens for contributing high-quality content (in theory).

The tokens started on the testnet version of the Ethereum blockchain. This was to cut fees and allow a large number of transactions to take place – rather than putting extra weight on the main blockchain.

Soon, Reddit launched its “Scaling Bake-Off” initiative, Invite developers To make proposals to scale their new tokens — hoping to bring them to the Ethereum mainnet, in one form or another. After more than a year, the platform decided to expand with the competition winner, Arbitrum.

Arbitrum is known as a Layer 2 solution. This means that it removes the burden from the main blockchain (layer 1) – in this case Ethereum – processing transactions on its behalf. This allows the blockchain to support a greater number of transactions, with lower fees.

Why Arbitrum?

According to the Reddit team, Arbitrum distinguished them for several reasons.

The project, developed by Offchain Labs, is completely decentralized, and derives its security and endpoint from the main blockchain (transactions are essentially uploaded to the blockchain more often, ensuring that they eventually reach the mainnet). There are no central bridges which means that users will be in control of their Community Points and other digital assets.

In addition to being fully decentralized, the Reddit team says Arbitrum is developer friendly and has “broad ecosystem support,” with the potential to grow further.

Users will not be able to use their tokens while migrating to the Arbitrum network, which the team says could take several hours.

Users are encouraged to use the Vault feature built into the Reddit app to store their tokens. However, if members are using other wallets for storage, they will be able to use a tool to transfer their tokens to the metering network once the migration is complete.

Update: This article originally suggested that Layer 2 integration would be on the Ethereum mainnet, but has been corrected to clarify that the integration will initially be on the testnet.

© 2021 The Block Crypto, Inc. all rights are save. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

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