BitClout is a new type of a social network that lets you speculate on (the worth of) people and posts with real money. It’s built from the ground up

BitClout - Who Are Content Creators Supported By? (Visualizing HODLers)

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2021-05-21 16:00:07

BitClout is a new type of a social network that lets you speculate on (the worth of) people and posts with real money. It’s built from the ground up as its own custom blockchain. Its architecture is similar to Bitcoin’s, except it supports complex social network models like posts, profiles, follows, speculation features, and much more at a significantly higher throughput and scale. Like Bitcoin, BitClout is a fully open-source project and there is no company behind it — it’s just coins and code.

Since it’s creation in March of 2021, thousands of investors swarmed the platform with millions of dollars. Looking to invest ourselves, we were interested which content creator coins were most likely going to increase in value. To do this, we have to observe a very important fact about BitClout. BitClout is a social network revolving around content creators and their supporters, HODLers, people who hodl (hold) their coins. The more hodlers a content creator has the more their coin is worth. We can model the BitClout community as a graph where nodes are represented by content creators and investors, and edges by connections between them. If we can predict which new connections are going to form we can generate a profit by buying the coins of undervalued content creators and selling them once they increase in value.

Being a company that values the power of graphs two algorithms immediately sprung to our mind. Google’s PageRank algorithm, which ranks nodes in a graph by the value of their connections, and the Louvain method for community detection featured in the image on the beginning of this article. The community detection algorithm tells us which audiences stick together in the BitClout community. Based on this, if connections start forming to a new content creator from the majority of the community we can conclude the rest is probably going to follow.

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