FTX Partners With Reddit To Integrate Crypto Swaps: What You Need To Know

FTX Partners With Reddit To Integrate Crypto Swaps: What You Need To Know

Offchain Labs announced Tuesday the launch of the Arbitrum Nova chain, a brand-new layer-2 roll-up, to all users and developers.

The AnyTrust technology from Arbitrum, which is designed for extremely low-cost transactions with robust security assurances, formed the foundation of the new chain called Arbitrum Nova.

Nova uses a data availability committee as part of an innovative technical strategy.

“Community Points” transactions are processed on Ethereum, like all layer-2 rollups, and Reddit partnered with Sam Bankman-Fried's crypto platform FTX using FTX Pay to enable users to pay gas fees on Reddit's Community Points tokens using fiat currency.

"We are thrilled to launch our global partnership with Reddit today,” FTX said in its announcement. "As one of the largest social networks with over 400 million active users each month, Reddit has been a pioneer in web3, announcing Community Points back in 2020 as a novel way to empower its online communities."

The Nova committee certifies and validates batches of transactions and only posts the certifications to Ethereum, saving customers a large amount of money compared to uploading all data to the Ethereum network.

Community Points are ERC-20 Reddit tokens built on the blockchain that let users exchange rewards and engage with the social network. The more points a user earns, the more influence they will have within that space.

A user who has earned tokens can view them in the Reddit Vault wallet on a mobile device or a computer and collect airdrops by paying an Ethereum network fee, or "gas fees," once they have been earned.

Tokens are burned and taken out of circulation after being used.

Read FTX’s full announcement, here.

Posted In: RedditSam Bankman-FriedCryptocurrencyNewsTopicsMarketsTechGeneral

Visit Benzinga's Crypto Homepage - 1,000,000+ depend on Benzinga Crypto every month