After weeks of disappointing performance in the price charts, the Ethereum community finally had something to cheer for. The largest altcoin in the space currently valued at $ 158 has been at the center of the discussion, as reports have suggested that Reddit is testing an Ethereum-based community point system for its online users.
According to a video posted by a Redditor MagoCrypto, the social media platform would publish a list of members and their karma every month, and these members would be able to suggest changes, which would allow them to claim community points.
These community points were thought to be Ethereum-based ERC-20 tokens that would allow Redditors to access certain parts of the community. A statement of Reddit Mago functionality, said,
“Community points are fully controlled by the people who own them. They live on the Ethereum blockchain, which is the same technology as Bitcoin to secure property rights and control. Even Reddit can’t remove them. “
However, media contacted a spokesperson for Reddit and the person involved confirmed that Reddit was experimenting with a blockchain-based system. However, Ethereum was not mentioned in his statement. He said,
“We are constantly experimenting with ways to support communities Reddit. In this case, we are working with a community to test a feature that represents a user’s involvement in a community. We value and seek feedback from the community as we continue to explore the features that engage our users and our communities. “
Silver lining for Ethereum?
Assuming the reports are accurate and Ehtereum has been considered for the new community point system, it will be largely positive for Ethereum. adoption long-term.
Reddit reported an active user base of more than 430 million in early 2019, which should only increase in the past 12 months.
If such a large user base is exposed to ETH on Reddit, this could be extremely beneficial for the growth of DeFi. As mentioned above, ERC-20 tokens would be considered community points. ERC-20 tokens are DeFi compatible and it goes without saying that this will create an influx of users in decentralized finance.
With over 350 million active users on Reddit, migrating only 10% of the total number of users to DeFi will facilitate 10,000% growth in the DeFi space.
Since Ethereum has an advantage over Bitcoin due to its compatibility nature, which is the ability to combine different systems within a single blockchain, it can allow ETH to outperform BTC over the course of a few years.
However, Ethereum continues to face its problem of long-term scalability and, according to various analysts, the interoperability aspect of DeFi must also be developed.
Liquidity in DeFi is also limited to an extent that would be resolved if more assets could be used as collateral on the DeFi platform.
Overall, the announcement is pretty positive for Ethereum’s space, with its assets struggling to reach a bullish rally since the March 13 market collapse.