With each passing day, we see dynamic implementations of blockchain technology. Bitcoin seems to have paved the way for the development of more coins with real utility. Most assets today have their value tied to the performance of the asset itself or a company. However, what if a coin could be pegged to the reputation of an individual?
What is Bitclout?
BitClout is an open-source protocol that allows you to speculate on people and their social media posts using real money. Similar to Bitcoin, the network has its native token named after its blockchain; BitClout, which can be used to purchase “Creator coins” on the platform. However, unlike Bitcoin, it can support more complex functions like reposts, likes, and other regular social media activities.
The native coin can be purchased using Bitcoin on the in-built DEX (decentralized exchange) of the protocol. Like other DeFi platforms, the BitClout protocol controls inflation by doubling the price of the coin for every million quantity sold. This phenomenon creates scarcity for the coin, hence the total coin that will be minted eventually is between 10 to 19 million.
How Does the BitClout Network Work?
Imagine that for every profile you create on any social media platform, you have an associated coin (Creator coin) that anyone can buy or sell. Also, imagine the value of the coin is tied to the reputation of the Creator. Therefore, if you speculate that the coin will rise in value due to the popularity of a Creator, it makes sense to purchase the coin.
Interestingly, you can choose to sell the coin if you speculate that the coin will drop in value, probably due to the defamation of the Creator. However, you can make profits from the price difference. The more people buy a Creator’s coin, the higher the price soars, and vice-versa.
The platform has automatically downloaded the profile of the top 15,000 influencers on Twitter. This implies that you can buy the influencer’s coin even before they join the platform. Say you buy Kim Kardashian’s coin early enough; you can imagine how fast her coin’s price will rise when she later joins the platform.
Uses of Creator Coins
The developers of the network have proposed more amazing features for the creator coins. For instance, a creator might decide to only allow comments from people who hold a particular amount of their coin. As many more features are added in the near-term, protocols like BitClout will redefine how social media functions.