Reddit Tests Bitcoin and Ethereum in-app Payments for Digital Goods

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As Bitcoin and Ethereum expand considerably, companies approach cryptocurrencies for their various use cases. This is also the case for Reddit, a famous social media application currently testing the waters with the two giant digital assets for in-app payments.

Reddit is not the first app to approach cryptocurrency, as X, formerly Twitter, is set to introduce such a feature in 2024 based on crypto. Some speculations discuss the possibility of coins like XRP, XLM, or XDC being used for the platform as they start with the reputable X. However, Binance data showsย that the app is more likely to leverage Dogecoin or Ethereum prices because there has been specific support from Elon Musk towards these cryptocurrencies.

Apps taking advantage of cryptocurrencies are fueling a new trend of acceptance, which may contribute to faster adoption worldwide. So, letโ€™s see how Redditโ€™s action will contribute to the development of the industry.

Reddit Builds Treasury on Bitcoin and Ethereum

The company recently revealed that it has used part of its excess cash to increase its treasury for a while now as it sees crypto and blockchain to have significant potential. Although the final sum isnโ€™t considerable, as they added only small amounts, this is part of the plan to experiment with blockchain.

Reddit has bought some Ether and MATIC (Polygon) to provide payment forms for users in the future. Currently, some of the companyโ€™s employees hold cryptocurrency in their wallets, but itโ€™s not clearly specified the reason behind it.

The company also acknowledges that cryptocurrencies are more or less a trend in the market,

and it might not introduce them to consumers in the current states, or at least not until they become safer and more predictable.

Reddit isnโ€™t the first approach to the technology, as it provides a blockchain-based system through which users can be incentivized based on their positive engagement in specific interactions. Still, it was difficult to handle due to scalability issues.

Is This the Start of SocialFi?

Reddit, X and even Meta are the biggest social media companies globally, and theyโ€™ve come to approach cryptocurrencies to expand their reach and bring some change into the business. The phenomenon is called SocialFi, a way of incentivizing users to interact with others and platforms.

These companies built their networks with the help of blockchain and crypto infrastructure, allowing anyone using them to get monetized rewards for creating content and engaging with others to contribute to the platformโ€™s expansion.

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A prominent example of how SocialFi can evolve is the Friend.tech network, where users can exchange tokenized keys of group chats. The more they are purchased, the pricier they get, but users can place bets on them.

While it seems suspicious at first glance, since no one wants to pay for leveraging social media, these features may be more beneficial for creators as they donโ€™t have to rely on content moderators to receive exposure. Moreover, theyโ€™ll be able to monetize their creations more efficiently.

Some companies considered monetizing users only for using the app, which would be perfect for regular people who only want to scroll and socialize. Hence, anyone whose contribution helps the platform increase will receive tokens that can be used for in-app payments.

Unique Blockchain-based Social Media Platforms to Consider Hopping on

If youโ€™re interested in giving these apps a try, here are emerging social media platforms based on blockchain, decentralization and cryptocurrency. For example, thereโ€™s Steemit, a social network where users create and curate content to get incentivized. Since their income depends on various factors, users are challenging themselves to create unique content and improve their interactions with the community.

Another example is Verasity, a decentralized platform similar to TikTok, as it mainly has video-based content that rewards users who share and view these clips. The platform leverages its native token through which creators can get monetized, and viewers are encouraged to contribute to the platform.

A unique platform is Binded, where photographers upload their creators to a copyright vault to safeguard the authenticity of their photos and expand their reach for interested customers. Binded is now a reputable network for copyright protection, where pictures are immediately registered.

Blockchain Can Change Social Media Forever

Social media has always been fully centralized, raising several problems regarding security and scalability. However, blockchain could help mitigate these problems through decentralization, as transactions can be done without intermediaries. At the same time, data privacy and security are enhanced through decentralization as blockchain is a secure data storage system.

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Other benefits of blockchain in social media include transparency, monetization and community governance, some aspects which are currently lacking on centralized social media apps, as misinformation is on the rise.

However, one of the most prominent challenges of decentralized social media is in regard to content moderation since there isnโ€™t any centralized power to filter through content, leaving its accuracy and safety to the userโ€™s responsibility. This is where free speech becomes difficult to analyze because hate speech and cyberbullying might prosper in these environments. And integrity is a crucial aspect of a social media platform.

At the same time, regular users are used to centralized social media platforms, which are easy to navigate due to their user-friendly interface. On the other hand, blockchain-based social media platforms lack these features, so they need to invest in good-looking interfaces to retain users, as most might lack these features.

Blockchain-based social media platforms are the future of a more decentralized ecosystem in which transparency is critical to the development of online societies. However, they also introduce incentivization models to allow users to express their creativity and contribute to better environments.

Final Considerations

As Bitcoin and Ethereum became famous, few social media platforms approached their use to improve their in-app payment measures and access larger communities. Reddit is one of the latest social media apps that tests payments through these coins but has also exchanged some of its savings into crypto to appeal to the emerging industry. For instance, some platforms even offer features that allow users to check theย current price of Bitcoin, making transactions smoother and more accessible. X is another famous app that has been working with crypto like Dogecoin and Ethereum.