Reddcoin cracks the top 70 cryptocurrencies with a $263M market cap.
The crypto-mania continues as we inch toward year's end. For an overview of the major movement we've seen in December, see the coverage of Litecoin, Ripple, TRON, Cardano, Stellar, Bitcoin Cash, Qtum, and XVG.
The latest cryptocurrency to make waves this month is Reddcoin.
What is Reddcoin?
ReddCoin refers to itself as the "social currency for the digital age." As the name implies, it's designed for use on major social media platforms such as Facebook, YouTube, Instagram, Twitch, Twitter, LinkedIn, Tumblr, and Reddit.
Though the concept is simple, the technology to realize an intuitive, lightweight network is anything but. The most notable technological feature of Reddcoin is its 'PoSV' (Proof of Stake Velocity) algorithm. You may have heard of Proof of Work (PoW) and Proof of Stake (PoS)—these are types of mining used in Bitcoin and Ethereum, respectively—each has particular advantages you can read about at greater length in this piece from Blockgeeks.
Reddcoin implemented PoSV to situate value in both ownership (stake) and activity (velocity), and dubbed the process of validating blocks on Reddcoin as 'minting.' PoSV requires much less computing power than mining; it can be done on PCs, laptops, and mobile devices. Every Reddcoin user is automatically a PoSV minter, and the larger your stash of Reddcoins, the likelier you are to find blocks and receive rewards. This method also reduces the energy consumption associated with mining that we've seen spotlit in the news of late.
To further drive financial incentives for participation on social media, Reddcoin also incorporates 'Tip Platform' (which is a decentralized version of exactly what it sounds like), a 'ReddWallet' that has been optimized with social features to drive engagement through Reddcoin channels, and 'Redd-ID,' which lets users put their information, such as public keys and social network identities, on the blockchain via their specified username.
Why is Reddcoin Surging?
Rise of the Altcoins
This month saw the mainstream fascination with Bitcoin hit an all-time high. Its price cracked $10K at the tail end of November. Then, alongside the launch of futures trading on Cboe and CME, it had nearly reached $20K within weeks before Coinbase's Bitcoin Cash announcement, which served to set the price of BTC back into the $16-$17K range.
This has brought millions of new buyers to the crypto table, with Coinbase drawing around 100,000 users per day—even surpassing YouTube as the #1 app on the Apple App Store. As these buyers gained familiarity with Bitcoin and other mainstream coins like Ethereum and Litecoin, they've begun shifting some of their investments to altcoin markets. An added effect is that consumers are now studying these currencies more carefully to determine which stands the best chance to go 'to the moon'—especially ones with low entry-point prices like Reddcoin.
Speed and Functionality
As we saw with the booms in Litecoin and Ripple, it's become clear that cryptocurrencies that can prioritize speed stand a chance for positive growth while Bitcoin and Ethereum experience significant lags under heavy network strains. This is especially helpful in facilitating everyday use—making it an ideal selection for payment on Overstock.com.
Even beyond every day use, quick transaction speeds also typically mean more trading volume, which generates buzz—such as Reddcoin's appearance as a top gainer on popular crypto exchange Bittrex yesterday.
The Reddcoin team has internalized what it means to incentivize participation on social media. This applies not only to its lightweight framework and fun approach, but particularly in the function of PoSV minting. The more reddcoins users can accrue—whether via work, purchase, or tips—the greater the chance they have to compound their money and grow it proportionately greater. In keeping with the finesse of social networks, users don't even have to understand this technology to benefit from it.
Editor’s Note & Disclosure: The author participates in cryptocurrency markets. Neither the author nor Forbes endorses participation in any token sale or cryptocurrency investment, all of which have significant inherent risk. Seek advice from a financial advisor as well as do your own due diligence before considering investment.
The crypto-mania continues as we inch toward year’s end. For an overview of the major movement we’ve […]