Steem is a platform for content creators and curators to publish and monetize their works online. It uses blockchain technology for creators to maintain ownership of their stuff and so that they may create their own medium of exchange called Smart Media Tokens (SMT). These SMT’s are ways to incentivize people to create quality content while ‘upvoting’ or ‘liking’ quality work made by others as well.
Steemit, DLive, Utopian, and DTube are a few of the decentralized platforms currently running on the Steem blockchain. These platforms give the people ownership of what is rightfully theirs and let the people decide what is good content and what isn’t.
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Smart Media Tokens
As mentioned earlier, anyone can create their own token on the Steem blockchain to help content creators make some money. This means that Steem serves the purposes of creating a digital currency and a social media platform where users can exchange said currency. Steem has zero transaction fees and has a higher transactions per second (TPS) rate than both Bitcoin and Ethereum.
Distribution: Proof-of-Brain
Traditional cryptocurrencies use Proof-of-Work to create new tokens and distribute it randomly to those who mine, those who secure the network. Proof-of-Stake on the other hand, asks that coin holders stake their coins to validate the network and in turn receive rewards in proportion to the amount of coins they have. For Steem, new tokens are distributed to users who contribute most to the platform. This is called ‘Proof-of-Brain’.
Every 3 seconds, one block is produced on the Steem blockchain. This is distributed amongst content creators, curators, active users, Steem Power holders – all those who add value to the platform. If Bitcoin requires miners to fight over computing power, Steem demands competition over who contributes the most. Content creators are rewarded for their work. Users who ‘like’ or ‘upvote’ are rewarded for helping decide what is relevant. Even worthy commenters are rewarded if they add to the discussion.
Steemit
Steemit was the first to be built on the Steem blockchain. It is a blogging platform (think Reddit) that pays its users for creating content and for curating quality content created by others. Steemit has three (3) different coins, each for their own purpose: STEEM, Steem Power (SP), and Steem Dollars (SBD).
STEEM
STEEM is the most basic unit of value from which all other tokens derive their value. People can buy or sell it on exchanges. They can earn it on the Steemit platform. They may use it to pay other people, or even convert it to Steem Power (which is called ‘powering up’) or Steem Dollars.
Steem Power (SP)
Steem Power can be compared to a company’s stock; it is basically equity. Users who believe in Steemit as a long-term investment opt to reinvest their money as Steem Power. Majority of the new STEEM coins that are created are distributed proportionally to SP holders, kind of like dividends. SP holders are rewarded in interest because they allow the network to grow by keeping their money in the system.
Steem Power also gives holders added benefits within the Steemit platform. Those who have a lot of SP have a greater impact on what content gets pushed to the top. A user’s influence corresponds to the amount of SP he or she has. The more Steem Power one holds, the greater the voting power he or she possesses.
Steem Dollars
Steem Dollars is a stable currency, which is valued at 1:1 US Dollars. This is so that content creators who wish to earn in Steem Dollars retain their gains as opposed to receiving a highly volatile coin like STEEM. SBD also pays interest since holding it keeps the money within the network. It might not be as high an interest rate as Steem Power, but it is a substantial gain for a stable currency.
STEEM Insight
This technology is changing the landscape for publishers, content creators, and consumers. In the near future, creators will no longer be dependent on advertisers to tell them what to make; they won’t need approval from big corporations to fund their passion projects and whatnot. It is not an assurance that people can create whatever they want and be rewarded for it, because it is still a competitive space with everyone differentiating themselves from the next person, but it is a start in the right direction towards originality and true ownership.