Virtual currency market has a number of interesting coins, which means The Coin Shark will continue to talk about cryptocurrency projects that managed to attract attention of many users and are worth mentioning. Today we have – Steem, a reward blockchain platform and Steemit social network that enables its users to earn virtual coins.
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- What is Steem
- The ecosystem of Steem platform
- History of Steem cryptocurrency project
- How to make money on Steemit
- Steem cryptocurrency exchange rate
Steem is a blockchain platform for monetizing user content. Steemit, a social network focused on creating and sharing users content on various topics, operates on Steem blockchain. It is similar to the platforms you’ve definitely heard about – Medium and Reddit. However, the main difference between Steemit and its market mates is content monetization. In other words, each user receives a certain number of cryptocurrency for the publication of a certain material, depending on how this material is valued by the community. The more posts, likes, comments users make – the more coins users get. It is supposed to encourage users to make good quality, interesting and useful works, as nobody actually expects to recieve a lot of likes, if he or she simply rewrites a Wikipedia article. So, content authors and curators receive daily rewards based on the community voting. According to the information on the official website of the project, Steem has already paid more than $40 million to its users, and there’re almost one million accounts in Steemit social network itself. One and a half million publications are made each month.
The main language of the platform is English, but you may also find articles written in other common languages, such as Russian, German or Spanish.
There are several virtual currencies operating on Steem. They form a single ecosystem of the project. STEEM is a basic coin of tge Steemit social network. However, in order to be able to vote on the platform, users need to convert STEEM to Steem Power. The more Steem Power a user has, the more important is their vote for a content. Those users who have a lot of Steem Power receive more than 90% of new STEEM coins issued, which, in fact, encourages Steem community members to invest the assets back into the platform by converting their STEEM to Steem Power.
There is also a coin called Steem Dollar. Its rate is 1:1 equivalent to the US dollar. According to the Whitepaper of the project, Steem Dollar confirms the community’s debt obligation to a holder, so a holder, in fact, lends money to the project for its development. Steem Dollar is actually very similar to stocks.
The startup was created in New York in 2016 by Ned Scott and Daniel Larimer. Larimer is a well-known figure in the world of IT and virtual currencies. In 2014 he developed a cryptocurrency exchange platform called BitShares, in 2016 he co-founded Steemit, and later joined a sensational project EOS. In addition, he is also the developer of the Delegated Proof-of-Stake (DPoS) consensus algorithm.
Every user of Steemit social network can receive a reward in Steem coins. The main thing is to post interesting and useful content that other users will appreciate with sufficient number of likes and votes. As we have already said, not only posts, but also comments, as well as other activities are taken into account.
Users vote, thereby forming a rating of content and determining how much reward the author will receive.
Steem coins are traded on the major cryptocurrency exchanges, like Bittrex, HitBTC, Upbit, Poloniex, Huobi, Binance, OpenLedger, RuDEX and GOPAX, where users can exchange them for fiat money (US dollar and South Korean won), and for other virtual currencies, such as Bitcoin, Ethereum, Tether, etc.
Currently (June, 2018), one Steem costs around $ 1.67, and project’s market capitalization exceedes $ 400 million. That allowes Steem to be the world’s 33 cryptocurrency buy market cap.
The first time the rate increased significantly was in the summer of 2016, when Steem reached a price of almost 4.5 dollars. However, then the rate fell, and did not exceed one dollar for almost a year. Once it was even as low as 9 cents. In summer, 2017, Steem rate increased again, this time to $ 2, and by the end of the year, together with most of other cryptocurrencies, Steem managed to set its all-time record having reached 6, 6.5 and finally 7.2 dollars.
Steem is a fairly young project, and so far only Steemit social network functions on its platform. Considering the fact that Daniel Larimer stands behind its creation, one can assume that the project will continue to develop, improve its technical base and attract new users. However, on the other hand, Daniel is already engaged in other projects, in particular EOS. The popularity of Steem platform will be a very important point of the project’s development – whether third-party companies and developers will use Steem blockchain to launch their own social networks with monetization mechanisms, already applied in Steemit.
Steem provides very high transaction speed, better than Bitcoin or Ethereum and, what is also important, has no commission fees. The platform provides tools for launching and running blockchain business, in particular, users can issue their own digital currency. Steem’s special way to distribute cryptocurrency was called “Proof-of-Brain” consensus algorithm. In fact, users can earn virtual currency without any special IT-skills, any mining or trading involvement. Anyone who can create interesting and useful content can receive a reward.
However, Steem has its drawbacks. There are no technical restrictions for users who have the largest number of Steem Power (and, therefore, the most “important” votes), against voting for their own content, no matter how good or bad it may be. Steem has less than a million users, comparing, for example with Facebook, that has hundreds of millions. But it is probably too early to say what is going to happen with Steem in the long term and whether it manage to increase the number of users of Steemit social network and attract other developers to use Steem blockchain platform. First steps have already been made and appeared to be successfull, but it is still difficult to say what will happen in a few years or more.
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