Steem coin is a cryptocurrency used to power Steemit platform – a blockchain-based social media platform. Users create and store their content on Steemit like other news platforms like Reddit or Hacker News and Steem awards them for their work.
What is Steemit?
Steemit is the main social network that interacts with users, it was developed based on Steem blockchain. At Steemit, users can contribute contributions by writing articles to receive a reward of STEEM tokens if the article is valuable and receives high votes. Users can also earn tokens by reviewing the content of other people created by upvote; they will receive a system’s reward. So on it forms a cycle: writing – voting – receiving rewards.
How does Steemit work?
In some ways, Steemit is similar to other digital currencies. For example, Steemit currencies can be bought and sold on the open market like all other virtual currencies.
Steemit allows money mining, but that’s not the main way to make money. Every day, Steemit currencies are generated by the network and distributed to the participants of the site. The more you join, the more you will get.
Features of Steem
Steem’s token allows publishers to create communities based on economic support to drive platform growth.
Smart tokens are capable of settling almost immediately with virtually no transaction fees, in order to open up a new non-advertising business model.
Publishers can also use tokens to raise funds through ICOs.
3 different cryptocurrencies of Steemit
Steemit actually has three different currencies: Steem, Steem Power and Steem Dollars.
Steem: It is bought and sold on the open market just like other tokens. To vote on content on the network, you need to convert Steem to Steem Power or convert Steem to Steem Dollars.
Steem Power (SP): When you convert Steem to Steem Power, you invest in this network. One unit of STEEM, called SP, is equivalent to one vote. Those who have the most SP, the most influential on which content, that content will be put on top.
Steem Dollars: Steem Dollars are worth 1: 1 against USD. This is the unit used to represent a short-term debt. In the whitepaper, keeping Steem Dollars is seen as a way to help develop the community.
Team
The Steem project was founded in 2016 by Ned Scott and Dan Larimer – Co-founders of BitShares and EOS. The two founders of Steemit Inc, which runs the Steemit website and fund the development of this cryptocurrency platform.
On March 15, 2017, Dan Larimer left the project and moved on to develop the EOS platform. Dan’s departure from the project is more or less affecting Steem’s development, but the Steem framework is almost complete. Ned and the other members continued to grow quite well and made strides consistent with Steem’s development.
Conclusion
Steemit is an excellent subsistence ecosystem for content creators, managers, and security. The Steem Blockchain development team recognizes that Steemit is one of many potential applications that can benefit from basic software.
Steem is a potential coin project to invest in the long term; there are too many factors to show Steem will develop in the future. Steem is the leading platform in developing social networks with the reward mechanism to maintain the community, technology and in particular, Steemit social network. With a talented development team and a clear roadmap, Steem can completely realize their ideas.
You can check STEEM price here.
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