Steeemit is the name of a platform that uses blockchain technology as well as Steem tokens.
This project is intended to eliminate the shortage of convenient and effective tools for paying for work on creating unique content.
Every Internet user has dealt with forums in one way or another. These sites allow you to raise topics of interest to a person and receive comments from people with whom contact would otherwise be impossible. The importance of such communication can hardly be overestimated: it saves tens and hundreds of hours for millions of people. However, a common problem in most forums is that there is no way to thank an expert for advice. Steem offers its own solution.
How it works
The platform implements a post voting mechanism that uses tokens. This leads to the fact that authors can receive tens of thousands of rubles for high-quality material. There is also an award for the curator who votes for the best posts. New Steem tokens are issued daily on the platform, which are distributed proportionally among the network members who received votes for the post and among the curators. The users themselves decide the further fate of the coins.
The idea attracted a lot of people, many of whom Steem allowed to make writing and copywriting their profession.
Another consequence of the developed mechanism was internal regulation: participants can hide inappropriate or violating the rules of the post.
There are 3 types of "currencies" circulating on the platform: Steem, Steem Power and Steem Dollar. Let's consider them in more detail.
The main token of the system. It is traded on cryptocurrency exchanges (which, by the way, are experiencing a phase of rapid growth). It has an inflationary nature due to an additional annual issue of 9.5% of the total number of coins in the system. That, however, does not prevent the token price from growing.
By purchasing SP, you get "currency", which can be sold no earlier than after 13 weeks. Holders of these tokens are entitled to additional issued coins, which motivates users to purchase and hold them.
At the moment, holders of Steem Power tokens receive 15% of all generated tokens, while the remaining 85% is distributed among the people involved in creating and promoting content.
The main feature of SD is constant value. Associations arise with gold from the world of fiat currencies. The SD value is pegged in US dollars. It is in this form that authors receive a reward for their posts (50%), the second half is listed in the form of SPs discussed earlier.
Upon receipt of the Steem Dollar, authors have a choice:
convert SD to Steem and sell on the exchange
leave tokens on the account, receiving up to 10% per annum
convert SD to Steem Power (considered as a long-term investment)
Recently, however, the price of SD on the exchanges has found high volatility.
Project development history
Ned Scott, CEO of BitShares, and Dan Larimer, who is associated with EOS (see the project at the link), founded the project in 2016. The whitepaper was presented in March. Since its inception, the emphasis has been on the reputation of members as a tool for self-regulation. The authors studied the Reddit forum, well-known among English-speaking users, for a long time and found a way to use its advantages, while depriving all of its disadvantages.
To identify users, it was decided to leave alphanumeric nicknames (which differs from public addresses familiar to the crypto community), and chose Proof-of-Stake as a mechanism for reaching consensus (read more about the algorithms used in the industry).
Where can I buy
Both Steem and Steem Dollars can be purchased outside the platform. The price for the latter is currently several times higher than the pledged value ($ 1). Tokens are represented on almost all major exchanges, including Bittrex (over 73% of the total trading volume), Poloniex, Binance (the trading pair appeared about a month ago) and others.
For a complete list of exchanges where you can purchase STEEM, we recommend visiting CoinMarketCap.
Decentralized exchange platforms (the competition between which is heating up) also provide this opportunity. We recommend using ShapeShift.
How to store
After purchasing tokens, you can either leave them on the exchange (if you are not afraid to lose them), or transfer them to a wallet on the platform itself or to an external storage, such as Steem Wallet.
A unique feature of the project under consideration is complete self-organization. The project team aimed at a market that is already oversaturated with large players, but due to a fundamentally new approach, Steem has been attracting more and more new users for a long time. Many of them leave the portals that have already become familiar forever. The product, undoubtedly, turned out to be of very high quality, and its popularity is easy to explain.