Steem is a blockchain-based platform designed to reward content creators and curators. It is primarily associated with the social media site Steemit, where users can earn cryptocurrency through writing and curating content. Steem aims to create a decentralized, incentivized content platform that encourages user interaction and engagement.
History of Steem
Steem was launched in March 2016 by Ned Scott and Daniel Larimer. The platform quickly gained attention due to its unique approach to rewarding social media users with cryptocurrency. It aimed to redefine the traditional social media model by providing tangible incentives for content creation and curation. Steemit, the primary application built on the Steem blockchain, became the flagship social media site where users could interact and earn Steem tokens.
Key developments in Steem's history
- Initial Launch: The Steem blockchain was launched in March 2016, followed by the release of Steemit in July of the same year.
- Community Growth: The platform gained popularity with users attracted by the opportunity to earn cryptocurrency for their content.
- Hard Forks: Over time, Steem underwent several hard forks to improve its functionality and governance. Some of these changes were aimed at refining the reward distribution mechanism and enhancing blockchain efficiency.
How Steem works
Steem operates on a delegated proof-of-stake (DPoS) consensus mechanism, which allows for fast and scalable transactions. The platform's native currency is the Steem token, along with two derivative tokens, Steem Power (SP) and Steem Dollars (SBD).
The reward system
Steem's reward system is designed to incentivize content creation and curation. Here's how it works:
- Content Creation: Users post content on Steemit and earn rewards in the form of Steem tokens. The amount earned depends on the community's votes.
- Curation: Users can also earn rewards by curating content, which involves voting on posts and comments. The earlier a user votes on a popular post, the more they can earn in curation rewards.
Steem Power and Steem Dollars
- Steem Power (SP): SP is a measure of influence on the Steem platform. Users with more SP have more voting power, which allows them to influence content rewards more significantly. SP cannot be traded directly but can be converted into Steem over time.
- Steem Dollars (SBD): SBD is a stablecoin pegged to the US dollar. It is used within the Steem ecosystem to provide liquidity and can be converted into Steem or other cryptocurrencies.
The Steemit platform
Steemit is the primary application built on the Steem blockchain. It functions similar to other social media platforms but with the added feature of cryptocurrency rewards. Users can create blog posts, comment, and interact with others while earning Steem tokens.
Features of Steemit
- Community-driven Content: Steemit allows users to publish and share a wide range of content, from articles and photos to videos and more.
- Decentralized Governance: The platform operates under a decentralized governance model, where stakeholders with more Steem Power have a greater say in decision-making.
- Incentive Structure: The platform's reward structure encourages high-quality content creation and active participation from the community.
The Steem blockchain ecosystem
Beyond Steemit, the Steem blockchain supports various applications and projects that leverage its infrastructure. These include other social media platforms, gaming applications, and decentralized finance (DeFi) projects.
Developer-friendly environment
The Steem blockchain provides a developer-friendly environment with comprehensive documentation and APIs. This has led to a growing ecosystem of apps and services built on Steem, extending its usability beyond just content sharing and curation.