Last year, Reddit launched two ERC-20 tokens named $MOONS and $BRICKS to give more ownership and control back to users. These tokens are community points. Now Reddit aims to scale these with Arbitrum.
Arbitrum is a second-layer solution and uses optimistic rollups to scale. Because Arbiturm uses optimistic rollups, the project benefits from Ethereum’s security and decentralization. So, the project enables scalable transactions without sacrificing security and decentralization.
In a blog post, Reddit explained its decision to use Arbitrum.
The reasons are:
- Developer friendliness
- Broad ecosystem support
But Reddit will test the scaling network on top of Rinkeby first before deploying it on the Ethereum mainnet.
“After significant research and in-depth reviews of multiple projects, we found Arbitrum’s optimistic rollups to be the most promising scaling technology for Community Points. Today, we are launching our own Layer-2 rollup using Arbitrum technology. We will be testing this scaling network on top of Rinkeby, before migrating to the Ethereum mainnet.“Reddit Blog Post
Layer 2 solutions gain a lot of attention at the moment. Very recently, Uniswap V3 launched on Optimism, another scaling network that uses optimistic rollups.
It is also not the first time that Reddit entered the crypto industry. In January, Reddit dedicated developer resources to support scaling efforts for Ethereum.