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How community points will enhance adoption of Web3

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Nitro is a new system that was initiated in August 2022 to make the Arbitrum network better. It is a fully integrated layer two roll-up system, with features such as a sequencer, token bridges, data compressor, and more.

Steven Goldfeder, the Co-Founder and Chief Executive Officer at Offchain Labs, explained at SmartCon that the new Nitro system will allow users to deploy fewer resources with a faster transaction rate.

The Co-founder recalled during the conversation how Arbitrum and Reddit partnered in 2021 to create a system that rewards users with community points. In response, Steven shared that Arbitrum was selected to create a self-custody, decentralized token that gives Reddit users control over the tokens they earn. 

He also highlighted that these tokens can be used across projects on Arbitrum if the developers choose to accept them. For instance, he cited that if a game is created on Arbitrum, the developer can decide to use the Reddit Community point as its currency thereby allowing holders of the token to participate in the game at will. Steven and Sergey opined that this will be one of the frontiers of the Web3 ecosystem.

Fair Sequencing will minimize MEV

Analyzing the power of Oracles, the Offchain Labs boss said that they are and will be useful and important in connecting data in a secure and reliable manner. He went ahead to praise Chainlink for making this possible as one of the most reliable Oracles in Web3.

However, he also pointed out that there is a problem – the Miner Extractable Value. MEV (Miner Extractable Value) is a process whereby miners maximize their profit by controlling, with preference, the ordering of transactions on a blockchain network. 

This affects users of these blockchains making it more expensive to run transactions on them. To solve the MEV challenge, the duo said that fair sequencing will help to minimize but not totally take it out of the blockchain ecosystem.

Read also:

Swift to bring DeFi to 11,000 banks

How smart contract will transform business processes – CEO of Space and Time

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  1. Pingback: How community points will enhance adoption of Web3 by Chuks Nnabuenyi Jr – CryptoTvplus Events: NFT, DeFi, Bitcoin, Ethereum, Altcoin Events

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