BitClout is a new type of social network that meshes traditional social media with speculation. It's built atop its own custom blockchain, so it offers many of the decentralized benefits of other blockchain-based services, such as Bitcoin. Currently, most people consider BitClout to be a proof of concept blockchain design for running a social media brand that values people using real money. However, this may change if it becomes more popular in the future. In fact, there are already a large number of prominent investors looking to buy into the idea.
The concept behind BitClout is annoyingly foreign, so it can be hard to explain. It's a type of social network that allows you to speculate on people's value with real money. It uses a similar architecture to bitcoin, but instead of recording transactions, it logs things like follows, likes, and profiles. It's currently a fully open-source project, and it uses coins as a trading system to allow users to make purchases.
BitClout is cashing in on the current NFT - non-fungible tokens - trend. Blockchain systems can assign unique digital assets to specific account holders. BitClout, like many other such systems, charges people to claim ownership of their digital assets. When they do, coin holders get real cash, and, in exchange, buyers get a unique coin.
Coins on BitClout sell for non-trivial sums of money. So far, the platform has managed to collect an astonishing $150 million. But the founders are keen to emphasize it's not a scam. That's why they've attracted investment from a large number of major corporations and venture capital funds, including Digital Currency Group (which owns CoinDesk), Sequoia, Andreessen Horowitz, Pantera, and more.
BitClout describes its creator coins as "a new type of asset class that is tied to the reputation of an individual." The idea is to allow people in society to trade "social clout" by measuring their value to everyone else.
To take an example, Elon Musk's social clout is high because he is investing in sustainability and rocketry - and making a success of it. Thus, his coin would be worth more. However, if he said something at a press conference that people didn't like, his value would go down. The idea is to incentivize people financially to reach their potential.
BitClout is looking for ways to leverage its blockchain and coins. Here's what's it's come up with:
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