What is ReddCoin? How Does it Work?
ReddCoin is a decentralized social cryptocurrency that facilitates prompt transactions of RDD, the native currency of ReddCoin on several social media networks without any transaction fees. Think of it as the blockchain version of Facebook Cash, Venmo, or Snapchat’s Snapcash that allows you to seamlessly send or receive money to family and friends through their respective platforms.
So, what’s different about ReddCoin cryptocurrency? Typically, to transfer money on these premier social media platforms, you have to exit the app and use a third-party platform. With ReddCoin, however, you can seamlessly integrate it to multiple platforms such as Facebook, Reddit, Twitter, and more. Other than instantly transferring money, you can ‘tip’ your favorite content creators with ReddCoin on the social media platform if you like their posts.
Connecting your ReddCoin Address to ZenLedger For Your Crypto Tax Forms
- To import your ReddCoin transactions into ZenLedger for your crypto tax forms, all we need is your public address.
- Select the proper blockchain or wallet from the dropdown list.
- Paste your address into the address field in ZenLedger.
- Select if the wallet is based in the USA or not.
- Then hit the ADD COIN button
How Does ReddCoin Cryptocurrency Work?
ReddCoin cryptocurrency operates on the proof-of-stake-velocity (PoSV) consensus algorithm used to boost network security. It has slight differentiation from the well-known and adopted proof-of-stake (PoS) mechanism.
PoS and PoW mechanisms are completely different but their methods are fairly simple. PoW requires energy-intensive specialized mining rigs that solve complex computational puzzles to verify transactions and add blocks on the blockchain. PoS, on the other hand, allows users to stake their coins and use them to validate transactions, rewarding them in tokens for their contribution to verifying the transactions and enhancing the security of the network.
In PoS, the amount of rewards they receive is directly proportional to the coins they stake. It certainly beats Bitcoin’s arms race of acquiring more and more powerful rigs. However, PoS encourages what is known as coin hoarding to earn higher rewards.
Using the PoSV method, ReddCoin eliminates the drawbacks of the PoS method. The PoSV mechanism encourages periodic and consistent RDD trading among coin holders. What difference does it make? An actively traded currency is a healthy currency and after all, RDD is a social currency. It also restricts the distribution of larger rewards to larger wallets.
Redd ascertains velocity by assessing the coin’s age and the frequency of transactions of a wallet. Based on the assessment, it simply adjusts the staking rewards.
ReddNetwork: Key Features
The ReddNetwork has some pretty impressive features:
- Peer-to-peer, open-source ecosystem, forked from Litecoin and therefore, remarkable transaction speeds.
- 58.9 second average block time. 10 times faster than Bitcoin
- Essentially zero transaction fee
- PoSV consensus mechanism encourages active trading and disincentivizes hoarders
How to Use ReddCoin Cryptocurrency?
ReddCoin has numerous APIs and UIs that make social media tipping quite easier. Here’s how you can use the token:
- Create an account on ReddCoin Wallet
- Once done, you can link your Twitch, Twitter, and Reddit accounts
- Download the ReddID browser extension
- When you like someone’s content, enter their username and send a micropayment
With RDD, you can buy Reddit Gold on Reddit, Bits on Twitch, and use it as a payment method at a few minor retailers. In 2014, ReddCoin launched ReddCoin Broadcast, which broadcasts messages across social media platforms just like Hootsuite and Buffer, but the only difference is ReddCoin Broadcast is a completely free tool.
How To Buy Redd (RDD) Coins?
With so many benefits of the ReddCoin, one must wonder how or where to buy the RDD coin? Here’s how:
Step 1: Open an Online Account
First, you need to access a crypto exchange that offers RDD such as Binance or Bittrex. On these popular exchanges, you can buy RDD with fiat currency and access several assets, and trade in different types of altcoins, future markets, and more. Finish up your registration by proving your full legal name, age, email address, mobile number, and a government-issued ID.
Step 2: Buy a Wallet
Storing your coins on the exchange is ideal for daily traders but if you plan to buy and hold for the long term, you’ll need a crypto wallet. There are mainly two types of crypto wallets: Software and Hardware. Software wallets are mobile and desktop applications that are free and connected to the internet and hence offer less security. Hardware wallets are offline devices and are only connected to your computer when you plug them in via the USB port. Therefore, hardware wallets are very safe. Choose a wallet as per your safety and budget requirements.
Step 3: Make your Purchase
After your online account and wallet are in place, you can go ahead and add sufficient funds to your exchange using your debit or credit card and buy RDD coins. Once the purchase is complete, shift your coins to your chosen wallet.
ReddCoin is similar to Reddit and it is a project built for the people. It was developed with the focus on enabling tipping on social media platforms and so far ReddCoin cryptocurrency is integrated into Twitch, Twitter, and Reddit. Besides, with the PoSV consensus mechanism, RDD has a shot at creating a sustainable ecosystem on social media.