What is Steemit (Steem)? A Digital Currency and Publishing Platform

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STEEM Coin Price

 

STEEM Dollars Price

 

What Is Steemit? A Quick Summary

Steemit is a blockchain based platform that allows publishers to be rewarded for their content in a decentralized model.

Essentially, it is a blockchain based Cryptocurrency paying medium.

Publishers can be paid out immediately, upvote, like, share, and downvote all with an incentive...

Steem and Steem Dollars.

The History of Steem Coin

Steemit was officially launched on July 4th, 2016.

It was founded by Dan Larimer and Ned Scott.

After the founding of Steemit, inc and launch of the steemit platform.

Built into their white paper was an inflationary model that doubled roughly every year, granted the community didn’t like this. So on December 6th, 2016 the model went from 9.5% inflation a year to .5%.

Then on March 15th, 2017 Dan resigned as head of technology.

Although, this happened with the announcement of a full marketing team, advisory board, and Ned Scott still a member of Steem.

The Founders of Steem Cryptocurrency

Dan Larimer: Linkedin

Dan is a well-known name in the Cryptocurrency Community, having started off by creating Bitshares.

And as such, he gained fame quickly, moving from Bitshares onto Steem.

Dan has since started another Cryptocurrency, EOS, which may eventually hold the tokens and platform of Steemit.

Ned Scott - Linkedin

Ned Scott started Steemit with Dan.

He was and is still the current CEO of Steemit, Inc.

The Purpose of Steem Coin

Steemit was invented for publishers and curators to actually get paid for work.

This happens in a decentralized way, where users get to help transfer funds to their curator immediately.

It's a voting system model, where there are top posts, newest, etc..

Similar to Medium or Reddit, Steemit first acts as a place to post articles, videos (via dtube), music, and more.

Then upvote, sharing, etc. end up both boosting a posts rank and the monetary value derived from the post.

Now where it also differentiates is in the use of a decentralized blockchain, where every word written is stored, and even if one edits both drafts are stored.

This helps keep accountability, especially in the age of fake news.

User accounts have the options of:

  • Upvoting posts
  • Upvoting comments
  • Share Posts
  • And Resteem (repost) posts

Each of these actions, pending on someone’s steem power, can lead to a monetary reward for the curator.

Now, this would be both in STEEM coins and STEEM Dollars.

Users can also be rewarded for curating content or discovering and sharing it, as well as posting relevant comments which are then upvoted.

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The Features of Steem Cryptocurrency

Decentralized Payment for Content Curators

The biggest reason for the creation of Steem is that Reddit and medium, and like sites, do not offer monetary rewards.

And if they do, not much goes to the author.

Similar to Youtube taking much of the money that a content creator should get, Steem helps give back the money, without a central entity dictating how much one should receive.

Instead, the community helps to decide.

In fact, Neil Strauss author and writer at the Rolling Stones is an advocate for Steemit and the reward distribution model.

STEEM Cryptocurrency, STEEM Dollars, and STEEM Power.

On steemit, there are a few different currencies and metrics one needs to keep track of:

STEEM Cryptocurrency

STEEM is the primary coin of Steemit.

Essentially Steem is the inflationary token that is transferred via members of the community helping to show where steem is going.

This is what curators get paid in and one of the things that help contribute to ones steem power.

STEEM Dollars

Steem dollars, on the other hand, are a tethered USD currency.

While these dollars help curators get a payout, attribute to Steem Power and subsequently can be retrieved for money, they didn’t stay tether with the USD.

As one can see on the chart above, Steem dollars are going for a high price currently.

Steem Power

Lastly, we have steem power.

This is a collective back-end rating, made by the system, to help a user gain reputation on the steemit.

Everyone starts with Steem Power of 25 and can then move up from there.

Using Steem Dollars, STEEM Coin, and a few other factors one gain reputation, and then when upvoting projects can give other curators more economic advantages.

Smart Media Tokens

Steem has made a few other moves lately adding something called SMTs to their platform.

Essentially an SMT is similar to Ethereum’s ERC-20 tokens.

These SMTs can be launched by anyone on the Steem Blockchain network. Their purpose is to help monetize online content and to create incentives to encourage desired user behavior.

They use something called “Proof-of-brain” instead of proof-of-work or proof-of-stake.

What is Proof-of-Brain?

Proof-of-brain is a type of reward system that encourages users to post, curate and interact with original content.

Making tokens distributed by upvotes, likes, shares, etc…

T.his system can then be integrated with websites to inspire interaction, growth and create incentives for using the website.

An Online Community With Huge Potential

Being a community based and created around incentives.

One’s which try to diminish inappropriate behavior actively, Steemit has massive potential for growth.

Taking on the likes of Stumbleupon, Reddit, and Medium.

And the community is still growing, with already over $22 million paid out to curators, and only 334,000 user accounts.

What We Think of STEEM Cryptocurrency

Steemit and Steem coins are two great entities.

With Steemit we all have our accounts and are starting to post actively.

And we all hold Steem as well.

This is a project which will take time and backing based on the community that it is developing.

As many have said it is something that draws value from its user-base, granted being a creation by Dan Larimer and having a solid backing already, we see Steem preforming well in the long term.

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February 23rd 2018, 06:00