The launch of the Reddcoin blockchain took place according to the following chronology: A public release was held on 20/01/2014. It initially worked on the PoW consensus mechanism. The project team attracted more than $100,000 and distributed 5.45 billion RDD between its investors. The creators of the project planned to limit the number of coins at 109 billion. But later, the community has decided to transfer the Reddcoin blockchain to a completely new Proof-of-Stake-Velocity (PoSV) algorithm, which represents a modification of PoS. In PoSV block generation takes only 1 minute. Less than 27 billion RDD were mined in the PoW phase before the transfer to a new algorithm.
How does Reddcoin work?
Reddcoin is used in a variety of social networks and instant messengers, such as LiveJournal, Twitter, Instagram, Telegram, Facebook, Youtube, LinkedIn, etc. The main purpose of RDD is the possibility to make donations for blog authors, administrators of groups, and channels. The developers of the project allow users to send a certain amount of RDD instead of likes, as a reward. Using RDD people can also buy stickers, pay for gifts, ratings, advertising, a variety of goods, and services within social networks. Everybody can send RDD currency to each other without intermediaries.
In different online projects, developers use various types of digital payments. Individuals can buy game currency, user votes, artifacts, etc., for fiat money. RDD can be earned, acquired on the stock exchange, and put into the growth of gaming or social account. The main idea is to replace the well-known "Like" button. Most of the actions daily committed by millions of users for free are tied to a single currency. The amount of the reward directly depends on the usefulness and significance of the evaluated content.
Decentralized platform with an interface for dApps creation. The Redd API allows users to develop and run their own applications.
Redd ID is a unique service that connects the public key and user's account in social networks. The key idea of Redd ID partially deanonymizes of the blockchain, because hackers can find out the user’s personal data from social networks. However, balance info data is securely encrypted. Hackers can know the wallet ID and other data that the users have posted about themselves but do not know wallet balance.
The mission of Reddcoin is to provide a convenient economy tool for social network interaction to encourage users' activity and reward content creators. The Reddcoin Blockchain technology is no different from other decentralized projects using the Scrypt cryptographic algorithm. Reddcoin is a Litecoin fork, but the crypto community doesn't know the block number on which the split has occurred. The developers created a new database (without a hardfork) and used the experience of Litecoin. The Reddcoin blockchain core is based on 2 popular mining technologies. It's a hybrid called Proof-of-Stake-Velocity (PoSV): initially, Proof-of-Work (PoW) was used, but Reddcoin applied a modified version of Proof-of-Stake (PoS). The reward is accrued for the coins balance holding in the wallet, and the mining is called "stacking" or “forging”.
Reddcoin staking (forging)
PoSV algorithm ver 2.0 Recently, developers launched a modified version of the stacking algorithm. PoSV 2.0 implemented some recalculations, and multiplied rewards to active users, the new version code includes a dev support fee of 8% of the total reward, deducted from each received stake reward accepted by the network. These funds are sent from each wallet to the wallet address controlled by the Reddcoin Core development team with the intention of using them in a few specific ways: To provide a financial and resource support to the further development and all operational costs of Reddcoin (RDD) and to ensure the fund to the Reddcoin community that can be used for compensations, if some members have losses, technical issues or otherwise problems and they have a serious reason for replacement of their coins. The fund is used entirely for charitable causes and deserving recipients, as determined by general consensus inside the Reddcoin community. These technologies imply transactions high speed, active community support, the presence of microtransaction function, reliable protection system, great software interface, exclusive conditions for companies who want to integrate ReddCoin into their business, resistance to overloads, and overall network stability.