Many cryptocurrency developers are focused on solving problems encountered in the traditional financial system. Issues like unfair lending practices and lack of access to financial services have inspired a wide array of digital projects in the Decentralized Finance space. Redd, formerly known as Reddcoin was inspired to optimize any area of the digital landscape that has experienced exponential growth over the past decade: Social Media.
Redd makes it easy for anyone to get paid for social media posts and content across the web. Dubbed “The Social Coin”, Redd facilitates quick and easy transactions between users, perfect for fee-free tipping on social media posts.
Driven by a dedicated team of volunteers, Redd was released in 2014, and has been compared to multiplatform, blockchain-based Patreon in the past. Users can already be paid in Redd on platforms like Twitter, Reddit, Twitch and YouTube.
The team also runs the independent Social Media platform, Reddcoin Talk, which hosts a community of over 60,000 members spread across 50 countries worldwide.
Proof of Stake Velocity
One interesting feature of the Reddcoin blockchain is its unique consensus algorithm: Proof-of-Stake-Velocity. When Bitcoin was created, the Proof-of-Work algorithm solved the problem of double spending elegantly and efficiently. As mining hardware has advanced though, individual miners have been replaced by large mining operations the world over.
As Bitcoin’s energy consumption has come under fire over recent months, blockchain projects have to employ different algorithms to achieve consensus. As a fork of the Litecoin blockchain, Redd switched from Proof of Work to a proprietary algorithm that combines Proof of Stake and the velocity of the currency to achieve consensus.
Proof-of-Stake has been criticized for encouraging accumulation rather than spending in the past, but the Reddcoin team skirted this pitfall by introducing the concept of velocity into the equation. A currency’s velocity is the number of times a unit of currency changes hands within a specified period of time. As a rule of thumb, the higher the velocity, the more likely it is that an economy is flourishing and members are doing well.
This unique algorithm encourages users to mine, spend and tip Reddcoin, rather than simply accumulating the currency. By connecting Reddcoin wallets to the internet, everyday users can participate in the mining of the cryptocurrency. Additionally, a penalty is levied on inactive nodes, which again incentivizes active participation in the network.
Since moving from Proof of work to PoSV, the Redd team has been continuously working on bringing further improvements to the network. One of them was implementing a second version of the PoSV algorithm in 2020, which enhances stake rewards for actively participating users and provides a revenue stream for developers to fund operational costs and provide further financial support.
We’re excited to announce that Reddcoin has joined Bitcoin.com Exchange. You can trade RDD today with BTC.