Reddcoin is a cryptocurrency that was released in February 2014 by a development team that comprises of people from a wide range of nations. The team brands their product as a kind of “Social Currency” that rewards points to internet content creators. In order to provide a detailed explanation that answers questions ranging from the technology behind the coin to the ideology of the team, the developers of Reddcoin created a white paper and posted it to their website. This effort distinguishes Reddcoin from other coins that were created for the sole purpose of speculation in the rapidly growing cryptocurrency market, because it shows that the development team of Reddcoin holds a vision supported by their understanding of the economic mechanics of society. Whether that vision drives them to becoming the first cryptocurrency that circulates around main social network platforms or proves that the general public and cryptocurrency are an unfitted couple, remains to be seen.
The central ideal adopted by the developers of Reddcoin is that cryptocurrencies are the best medium for a social currency. Social currency, as the name implies, is the economic value of human interactions and their influence upon consumers. Simply put, every post and conversation on Twitter, and every piece of video uploaded on Youtube, is an amount of social currency owned by these social platforms. Social currency has become extremely important for many companies that target younger generations as their potential customers. This is because there are 76.1 million social network users among the millennial generation, which is 91.6% of the whole millennial population. However, as pointed out by the developers of Reddcoin, there is not a universal standard on how to measure and reward social currency, which is why Reddcoin is working on a solution to cater to this demand.
According to their roadmap and “Mission” announcement on their wiki page, the Reddcoin development team is planning to establish a long-term relationship with main social media platforms, including Twitter, Youtube, Facebook, and Twitch, before 2019. Other gaming industry platforms, like Steam, Origin and Gog, are also within their list. The developers envision their product to largely circulate around network service markets and plan on it being used to purchase game credits in the future.
Reddcoin uses a new algorithm called Proof of Stake Velocity(PoSV). This algorithm is an improvement upon the original Proof of Stake(PoS). In this new system, the exponential function used to calculate the age of coins at stake changes to a logarithmic one. It makes the period after a transaction the most profitable time to accumulate coin ages. And after seven days without any transaction happening, the rate of accumulating coin age dropped to only ⅓ of the peak. This change encourages both the act of staking and trading. Since a cryptocurrencies’ overall health depends on the frequent exchanging activities among its users, this new algorithm will invigorate the Reddcoin economy. However, as the first to experiment with PoSV, Reddcoin faces many uncertainties.
The team behind Reddcoin has active Facebook, Twitter, and Github accounts. According to the latest update from their Twitter, the development team is going to release a beta test for a new feature of Reddcoin called ReddID. It is a browser extension that allows users to transfer small amounts of money to different social media accounts. This newly added feature will immensely increase the speed of coins circulating. It also further realizes the developers’ goal of making a “tipping wallet” based on cryptocurrency. Replacing the absence of Twitter’s tipping bot service which was withdrawn on September 14, Reddcoin’s new feature will bring more incentive for Twitter users to apply their wit in creating puns and jokes.
In conclusion, Reddcoin has an ambitious goals to shorten the gap between blockchain and the general public. However, just like many other innovative ideas that burgeon from the massive internet think-tank every day, the ideas held by Reddcoin developers may be shaken by their task of establishing connection with some of the tech-monopolies in this industry. But, if you enjoy watching passion projects develop, Reddcoin is definitely one to keep your eye on.