What is Steem?

STEEM is a popular altcoin among investors. However, before you Trade Trade STEEM, it is vital that you understand what you are investing in. Let's find out what's STEEM and how it functions

Steem is a decentralised social media platform that uses blockchain technology to provide its members immediate access to a monetization system. The goal of the protocol is to let consumers to make money off of their contributions to the network. A primary goal of the service is to give people a place to publish their own handpicked content online in exchange for bitcoin.

The protocol is an open-source, blockchain-based database that offers incentives for user engagement. It uses social media and cryptocurrency innovations to benefit its consumers. The network guarantees that contributors are treated fairly by implementing a reward system in which users are compensated according to the value they add to the network. The first Steem blockchain app, Steemit, launched on July 4, 2016.

Following are some of the ways in which the protocol hopes to benefit its user base:

To supply carefully selected news and commentary.

Making it possible to generate revenue.

To serve as a reliable information hub for readers.

Offering a USD-pegged cryptocurrency that is stable.

How is Steem different?

Many established social media platforms have reaped substantial financial benefits from user-generated content. But what really makes Steem stand out is the way it helps its users out by financially paying them for their contributions.

One distinguishing element of the network is that it is built on blockchain technology, making it the first of its type. Data on the platform are completely secure, there is no downtime, and it is non-custodial and decentralised. As an added bonus, cryptocurrency is used as the medium of exchange for user earnings.

Steem's guiding philosophy is that people who contribute to a venture should be reimbursed by the owners, much to how companies do by allocating shares during fundraising rounds. Another fundamental principle is a commitment to serving the community by providing access to a range of financial resources.

How many STEEM tokens are there?

The majority of Steem's currencies (STEEM) are put into a rewards pool, as opposed to being produced through mining like most other blockchains. STEEM is the protocol's official currency. Tokens are distributed to platform participants in proportion of their contributions to the pool.

Every three seconds, witness accounts (which create new blocks) update the Steem distributed ledger. So, the network generates new STEEM coins every day, and they are distributed as follows:

• Content creators get 75% of new coins.
• Steem Power holders receive 15%.
• Witnesses get 10%.

Steem Power (SP) and Steem Dollars (SBD) are the other two cryptocurrencies within the Steem ecosystem.

Network security

Steem's operations were revamped when the firm was acquired by Justin Sun, creator of the Tron platform. As a result, the network does not rely on mining to generate new blocks and proof-of-work is not implemented.

Instead of using proof-of-work to generate new blocks, this protocol has witnesses generate a new block at predetermined intervals (currently, every three seconds). However, delegated proof-of-stake is used by the Steem blockchain to boost the platform's transaction speeds and make it more scalable. Each new block added to a blockchain generates Steem Power for the witnesses who verified its creation.

Founders

Ned Scott and blockchain engineer Dan Larimer introduced the world to the first app built on the Steem blockchain in January 2016. The software functions in a similar way to other social networking apps, with the exception that its foundation is blockchain technology, making it a decentralised and non-custodial app. The network does not have the data issues that plague traditional social media sites.

From 2012 until 2015, Ned Scott was an operations and finance analyst for American food importer Gellert Global Group. In 2015, he met his current boyfriend, Dan, and discovered that they had many interests in common.

Dan Larimer is a software engineer and serial entrepreneur working with various technologies, including blockchain, DEXs, cryptocurrencies, and more. With Ned Scott, Dan co-founded Steem and served as its chief technology officer (CTO) until 2017

Where can you buy STEEM?

STEEM is available on the licensed cryptocurrency exchange CryptoForce and several other national and international exchanges.

Disclaimer: Cryptocurrencies are highly volatile and subject to market, technical, and regulatory risks. Crypto trading requires one’s own diligence, and Cryptoforce will not be responsible for any losses incurred. Any information provided here should not be regarded as Cryptoforce’s technical or financial advice