ReddCoin is the new cryptocurrency that is making waves in the first week of the new year. The crypto refers to itself as the social currency for the today’s digital age. As the name suggests, it is designed for use on leading social media platforms like Twitter, Facebook, Instagram, YouTube, Twitch, Reddit, LinkedIn, and Tumblr.
The technology to realize a lightweight, intuitive network is not anything simple, however, the concept is very simple. ReddCoin’s most prominent technological feature is its Proof of Stake Velocity (PoSV) algorithm. You have probably heard of (PoS) Proof of Stake or (PoW) Proof of Work —these are the kinds of mining that are used in Ethereum and Bitcoin respectively. Reddcoin applied PoSV to put value in both activity (velocity) and ownership (stake), and called the process of authenticating Reddcoin blocks as ‘minting.’ The PoSV technology does not require a lot of computing power like that of mining. You can do it on mobile devise, laptops, and PCs. Every Reddcoin user automatically becomes a minter of PoSV, and the bigger your Reddcoins stash, the easier it is to receive rewards and find blocks. This technology also minimizes the consumption of energy by huge levels.
Reddcoin also utilizes ‘Tip Platform’ to drive financial incentives for social media participation further. The platform is a ‘ReddWallet‘, which has been optimized with social elements in order to drive engagement via channels of Reddcoin, and ‘ReddID,’ which lets people put their info, like social network identities and public keys, on the blockchain through their username. CoinMarketCap reports that as at 10:40 am PST on Thursday, December 28, the cryptocurrency was selling for $0.009150. Seven days later, that number is $0.0190015 a rise of over 500%.
Why Is It Surging?
- a) Rise of the alternative coins
Last month saw the continued fascination with Bitcoin, leading it to hit an all-time high. The cryptocurrency passed the $10,000 mark in the last week of November. Then, along with the unveiling of futures trading on CME and Cboe, it had nearly reached $20,000 within weeks before Bitcoin Cash announcement by Coinbase, which served to set the price of bitcoin back into the $15-$16K range. As a result, millions of new cryptocurrency buyers have been brought to the table. In fact, the number of Coinbase users has gone up to around 110,000 daily – even overtaking YouTube as the most utilized app on Apple App Store. As these people familiarize with Bitcoin and other digital currencies like Litecoin and Ethereum, they have started to shift some of their monies to alternative coin markets. An additional effect is that people are now studying these digital currencies very carefully to evaluate which is the best to invest in — particularly the ones with low entry point prices such as Reddcoin.
- b) Functionality and Speed
As we saw with the Ripple and Litecoin booms, it has become clear that if a new cryptocurrency prioritizes speed, it stands a chance to grow positively unlike Ethereum and Bitcoin which experience huge lags due to heavy strains within their networks.
Reddcoin’s quick transaction speeds have therefore also played an important role in its recent 500% explosion.