Updated: Dec 20, 2019
Steem is the primary blockchain network that enables the Steemit social and blogging network to run. Steemit is a content creation and social networking platform. Users on the platform are rewarded in STEEM tokens for contributing to the website. STEEM, along with Steem Power and Steem Dollars, powers the crypto platform.
This guide will talk about what Steem is designed for, the team behind it, the way it works, and various uses and applications.
What Is Steem Designed For?
Steem is designed to introduce the blockchain world to social networks. It characteristically democratizes and decentralizes the way social networks work, in effect by moving revenue from various advertisers to users. The platform was designed to afford decentralization in the world of social media and content creation. The founders wanted a network that was free from censorship, central authority, downtime, data vulnerability, and data abuse.
It was created to solve the seemingly endless list of big problems routinely seen in other centralized social platforms, such as Facebook and Twitter. The platform was also designed to reward its users through STEEM. In a way, it is the carrot that drives users away from posting on sites like Facebook, which only allowed the central party to cash in on ad revenue and allow the users to get paid themselves.
Who Is the Team Behind Steem?
Steem was started by Ned Scott and Dan Larimer, in 2016. Scott is the creator of BitShares while Larimer is known for EOS. Larimer is also the present CEO of BitShares. Steem has ventured into some notable partnerships, including Morpheus Labs, Typerium, and Facebook (unofficial).
How Does Steem Work?
Steam can be best described as Reddit, where users get to create unique content and publish it online to receive a reward for it. The only difference is that Steem is blockchain-based, which means it can run in a decentralized manner. STEEM is different from other crypto coins since it does not solely rely on mining to create new coins.
New coins are created every day by the Steemit network where:
● Only 10% of block rewards are awarded to miners
● 75% of STEEM is divided between the authors and curators
● The remaining 15% STEEM is awarded to the holders of Steem Power
Because STEEM is created every day, it is not advisable to hoard it or hold it. Rather, the coins should be converted into Steem Power or Steem Dollars. They can also be converted to other cryptocurrencies such as Litecoin or Bitcoin through the open market.
Steem Dollars is the stable cryptocurrency of the network, which is intended to be valued at 1:1 with the US Dollar. Steam Power is the third crypto coin on the network and so is the token.
The concept of Steem has excited most industry experts. It offers several unique edges and benefits over other traditional competitors. This is probably the reason why the coin saw such a huge price surge, in 2017.
What are Current and Future Applications of Steem?
It is important to understand that STEEM coin is the fundamental cryptocurrency of the social media network – Steemit. Steem Dollars and Steem Power are dependent on STEEM. You mustn’t buy STEEM from exchanges, as the developers are simply going to dump millions of coins held as stake. Instead, try to get STEEM for free by curating content on the Steemit network.
As a blockchain, Steem has multiple uses. It is the only blockchain protocol in existence today that was built from the ground up, to power web and content applications. Few Steem based applications include:
● eSteem – mobile app
● DTube – decentralized video platform
● Utopian – open source project funding
● Steem Monsters – a digital collectible trading card game
STEEM is a relatively new cryptocurrency and has had an equal measure of volatility. However, the idea is considered fantastic in both theory and execution. There is already a fully working product in the market, with the promise of further updates.
The Steemit social network, which controls the price of STEEM has witnessed a continuous expansion in its user base. Further, the idea that users can earn by contributing content, which they anyway would have posted on another social media site, is one that attracts tremendous positive sentiments.
That being said, it is important to understand that investing directly in STEEM from a long-term perspective is a bit of a risk, given the coin’s volatility. However, the demand is expected to rise in the coming years, which could make it one of the more popular coins to hold in the long term.