Since the invention of blockchain technology, every tech company out there is in the race to leverage operations by decentralizing data storage, access, and related transactions. Bitcoin was only the pioneer, and now every other sector is joining the boat. In this post, we look at one such creative blockchain platforms; the Steem.
What exactly is Steem?
Steem is a unique blockchain based social media platform that allows users to earn rewards. Unlike other types of cryptocurrencies that draw value from limiting supply, Steem value is drawn from use. It was started in 2016 by Ned Scott and Dan Larimer who are also the main creators of Bitshares. The founders also created the Steemit Incorporation that runs hand in hand with the Cryptocurrency.
Even though it is less than a year since inception, Steem popularity has grown steadily, and its accounts have hit 170,000. This popularity has become the core driving factor for the Steemit platform because users consider it to deliver greater security and control over their data. When compared with other social media such as Facebook, the data is under the strict control of the company. Even users often find it very difficult to access some of their data.
The main aim of Steem was to bring a new dimension of blockchain technology and help users earn from their efforts. It also anticipated making the blockchain technology a reality in people’s daily lives.
How does Steem work?
As a social media based block-chain platform, the value is drawn from usage. Initially, the value was expected to take a steady downward trend, but it defied all odds to rise and become among the top 20-cryptocurrencies in the globe.
Steem allows anyone to earn the rewards. The social news platform, Steemit that operates the social media and blogging network saves the users’ content in the blockchain. By applying the blockchain technology, the comments and posts can earn some value (Steem).
Steem users can upvote comments and posts, and make the authors to get a monetary reward as Steem token. The blockchain also pays people for curating content (voting comments as well as post submissions). From this mode of operation, it is true to say that Steem tokens depend on the adoption and utility of Steemit.
When it was launched in July 2016, the market capitalization target was $400 million. This target was hit within one month, and the price of each token edged past $4.
How can you profit using Steem?
As indicated earlier, Steem tokens lack the inbuilt feature of limiting supply that is common with most other cryptocurrencies. Despite this shortcoming, the unlimited supply has proven highly profitable to the token class as more people accept it. When a user publishes quality and popular content on Steemit, he gets tokens through upvotes, sharing and comments.
Because there is no cap on tokens that content publishers can get, Steem token ensures that every person gets paid. This has made social media users start looking at their contribution from a value point of view. The disruption to the social media operation has already started tilting the landscape as more people head to Steem.
Steem application in the long term
When Steem application is compared to other blockchains, you might be tempted to think that the value could fall too low for lack of inherent coin value. However, the founders foresaw this issue and installed appropriate guards to protect the Token value. In every 3.3 years, all user tokens will be multiplied by 10 to ensure that the market value remains at par with other cryptocoins. This has created an important point of anticipation that is helping to draw more users to this unique blockchain.
The key features of Steem
- Steem lacks cryptographic hashes that are used as addresses in other block chains. Instead, the users are free to use their alphanumerical account names that ensure accounts are readable and very easy to understand.
- It applies delegated proof-of-stake consensus model: This means that Steem applies block creating accounts referred as witnesses that are designated as stakeholders. As opposed to adopting proof-of-work that is common in other networks, the individual accounts are scheduled to actively improve time between various blocks.
- The Steem Tokens: There are two types of Steem digital tokens, The Steem and Steem dollars. The main token is STEEM that is available in the different cryptocurrency exchanges. However, the Steem dollars are strictly based on the US dollars only.
- The Steemit wallet: This is a web based wallet that allows users to transfer Steem dollars and Steem. Besides, the wallet allows users to transfer the cash to other interest generating accounts. You can also deposit the cash to a cashing account in top banks and withdraw after three days.
Pros of using Steem
- Using Steem allows social media users to earn from their creativity.
- Though the operation of Steem is as complex as other blockchain technologies, the user end is more simplistic. Simply create and publish high quality and popular content.
- Steem provides a lot of flexibility for both operations and accessing cash.
Cons of using Steem
Though Steem has demonstrated its great potential, it is still very young, and users might be skeptical about raising their stakes in it. Besides, you only rely on other people’s comments to get voted as opposed to strictly studying the market. This is very limiting especially to people with no interest in publishing content.
Where to Buy and Sell Steem in Australia?
Crypto Currency for Fun recommends buying Steem at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Steem and they offer Instant Delivery or your coins right into your account.
Steem is a unique blockchain technology that is bringing a lot of disruption to the way other social media platforms work. Its popularity has demonstrated that more people are willing to shift to it to earn and even venture into the cryptocurrency world. Whether you are new or has been working with cryptocurrencies, this is no doubt one platform that is worth trying.