Steemit is a blockchain-backed social media platform that uses Steem to cryptocurrency to get boosted. Steem was the first-ever cryptocurrency that monetized online content. The company did this giving out rewards to the individuals who contributed towards steemit.
Steemit is a blockchain technology powered social media platform, a one of a kind, the successful attempt made in the blockchain world. Like Facebook and Reddit, it urges users to share and post content. However, Steemit rewards its clients by giving them their own smart tokens called Steem. These tokens are assigned to the users dependent on their contribution to the social media platform. Tokens can, in the long run, be converted into fiat money.
Users of Steemit can utilize their Steem crypto to purchase Steem Power or Steem Dollars for the platform or convert the Steem into Bitcoins. Steemit users are likewise allowed to cast votes to create a content hierarchy. The more upvotes a user gets, the more Steem they will be remunerated with. Steemit offers downvotes to the users, which means they can have better adaptability when rating content. Users with more Steem tokens can cast more votes and have a higher impact.
Numerous social media platforms follow vote based surveys along with shares or likes to rank content. Steem has integrated all these ideas into its platform to make it unique.
Steem Dollars are the units used to encourage and reward Steemit’s users for posting and sharing content on the Steemit platform. Each Steem Dollar is worth USD 1 (fiat). These tokens were introduced, in the first place, so that the shifting exchange rate of Steem wouldn’t influence its users. These Steem Dollars acquire an interest of 10% yearly, which may attract users and they would keep them for more.
SP token indicates how much power a user holds on the Steeemit platform. A user has to have a Steem power to be able to cast a vote. However, the more SP a user possesses, the more value his/her vote holds in the system. This fact would encourage users to hold as many Steem coins as possible. This procedure continues for over two years to ensure that the users do not take out their money early and which might result in the Steemit economy fall.
Steem token was introduced for the first in 2016; Daniel Larimer ( a developer) and Ned Scott were behind it. Daniel is the founder of the EOS blockchain and Invictus Innovations. When the company launched Steem in the market, it had a market capitalization worth $350m. Steem’s value, at that point, was increased by $1800. The platform has over 70,000 users at present; however, the number of active users is on the lower side.
Last year, like many other crypto companies in the market, Steemit also had to lay off its employees. The core purpose behind this is said to be the reorganization of the business framework due to weak market conditions and lower fiat returns.
Apart from earning Steem as a reward on the platform, one can also buy them on a few crypto exchanges including Bittrex and ShapeShift. If you are hoping to claim Steem, buying it is the speediest way, winning it through the social media platform can take some time.
Similar to almost all cryptocurrencies, Steem has its loopholes. Market spectators express their worries that Steem could be one of those ‘ pumps and dump’ tricks. Another extensive analysis of the blockchain-fueled platform is that it is a centralized accord, implying that the huge holders can vote in favor of similar individuals. This makes it an unfair procedure.