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You may have heard of a social network that works with blockchain based technology. So what is steem and his complete guide?. This platform is called Steemit and its Steem coins.
It rewards users and content creators. This social media platform aims to eliminate intermediaries and third parties in order to increase the creators’ profits.
Steemit is a social network whose interface is similar to any classic social network. The only difference with platforms such as Facebook or YouTube is that in Steemit users are rewarded with a token for publishing content. Steem is the network token with which any post, article or content creation published is paid.
History of Steem
The platform was created by Ned Scott and Dan Larimer with the aim of achieving a social network built at the top of the Steem network block chain. The platform was launched on March 24, 2016.
In the summer of the same year, steem coins started its take-off. Initially, a total of 5 million crypto currencies were released into the system. In 10 days, the digital currency had reached 4 USD per token.
After a period of time of little growth in the amount of steem, the value of the crypto currency began to rise. Thus, in May 2017 it experienced the highest peak and in December it reached over USD 2 billion market capitalization.
The currency has been evolving with a value that greatly exceeds the initial one, placing it among the first 50 crypto-currencies with the highest capitalization volume.
How does Steem work?
By creating content for Steemit, creators can make money. The amount of reward depends on the success of the publications. The more publications are shared and the more positive votes they have, the more token creators will earn on the steemit platform. It should be noted that the platform allows negative votes so that the rating of the content can really be evaluated objectively.
All publications on the platform are registered in the Steem blockchain. As it is an open and transparent system, any user can check the publications and the money earned by each one. The community itself is in charge of maintaining the network, since it is a system in which each user is responsible for maintaining certain parts.
Steem has no more and no less than three tokens. Among them are Steem, Steem Power (SP) and Steem dollars.
- Steem is the base crypto currency of the Steemit network. It can be exchanged for crypto currencies such as Bitcoin or others through the exchange platforms. On the platform, in order to cast votes, STEEM must be converted to Steem Power (SP). It is also possible to convert to Steem Dollars. By converting STEEM into SP, an investment in the network is made as capital. One unit invested in this way is equivalent to one vote.
- Steem power SP is the stock of the Steemit company. The more shares the partners own, the more influence they have on decisions on the platform and they receive more income from Steemit’s total earnings. Users who hold more Steem Power are known as the “whales”.
- Steem Dollar, according to the project itself, is the way to offer the community the unit value of a real currency, in this case the dollar, to encourage growth. It would be a unit oriented to represent short term debt. The value is 1:1 with the US dollar. Currently the price of the Steem Dollar is between 0.99 $ and 0.97 $.
This crypto is a minable asset, that is, we can obtain tokens through mining. This process is developed through Proof-of-Work. Most of the profits are sent to the miners’ investment fund so that the miners can benefit from their work. For each block of steem mined the miners receive 1 STEEM. The other 10% goes to the content creators who pay for their work in Steem.
If you have already decided to buy Steem you will need a wallet to store them. One of the special features of the Steemit.com platform is that once a user registers, they are assigned a wallet to automatically store their tokens including SteemsPower and SteemDollars.
- The same wallet can be adapted to the cell phone with the eSteem version, making it easy and accessible to manage the crypto-currencies.
- In case you don’t want to have your crypto-currencies in the network you have the option to save them in the Hardware wallet. These wallets offer security to your digital assets.
As a first option you have Trezor Model T. This wallet has a simple design to understand and handle in case you are new to the world of crypto.
Ledger Nano X is also a hardware wallet. Like the previous one, it offers security and peace of mind to our cryptos while being a comfortable way to manage our assets. It is up to you to choose the wallet that best suits your needs.
Advantages and Disadvantages of Steem
Now that we know how this crypto works and how it is composed, we can analyze what its advantages and disadvantages are.
- Rewards content creators by participating in the network.
- Through the voting system to prioritize quality content, the platform encourages participants to meet the highest expectations.
- By accumulating SteemPower, any user can increase their influence on the platform and thus their profits.
- As a decentralized platform, most voting is done through voting systems.
- Privacy. Steem encrypts all user data so that no one can access it or find out the data of an account owner.
- Imbalance in the voting power. It can be an advantage and a disadvantage at the same time depending on how you look at it. This is because if a user has a large amount of votes, he or she can prevent the growth of another user who does not.
- Loss of password. A security measure that can become a big disadvantage in case you forget your password. Steemit does not have a password recovery option.
- Inflation. Steemit does not have a limited number of units, but more are generated every day. Even if you ensure that there are tokens for everyone, this can lead to imminent inflation.
Where to buy Steem?
If you want to know how to buy the cryptocurrencies steem or where to do it, of course we’re going to recommend you to buy them at Bitnovo. And this is not simply because we are inside the brand’s blog, but because Bitnovo is really a fast and safe way to do it.
Our goal as a company is to make it possible for a person who just entered the crypto world to buy any crypto currency in a matter of minutes, without experiencing the problems that most cryptocurrency exchanges have.