STEEM – A BRIEF INTRO FOR INVESTORS
Designed to empower content creators by providing a decentralized social media network and platform for them to distribute their content and get paid in Steem cryptocurrency.
- Allows decentralized and free system of social media
- Uses delegated proof-of-stake (dPOS) consensus model, with one block mined every 3 seconds
- Three-pronged cryptocurrency system to create stability and market demand
- Holders of Steem Dollars and Steem Power earn interest for staking
- Allows for decentralized 3rd-party applications such as D.Tube video platform
There is no theoretical supply limit for Steem. Supply is set to double every year, with a 10:1 reverse supply split occurring every 3.33 years.
Steem tokens are staked in the voting pool in what is known as Proof-of-Brain, a consensus mechanism that helps determine reward amounts for contributors. Blocks are mined every 3 seconds, making for extremely fast transaction times that can rival other social media platforms.
Steem operates on a public blockchain where transactions can be viewed by third parties.
Creators Ned Scott and Daniel Larimer are computer scientists who have been involved in many other blockchain projects, such as EOS and Bitshares.
Creating a decentralized social media platform that cannot come under the control of any one government is a huge development. Layer on incentives for content creation and interaction with the network and Steem is creating a new paradigm for social media.
Steem is the cryptocurrency based on the social media and content creation platform Steemit. Steemit allows any user to create and publish content while getting rewarded by readers who vote for their favourite articles on the platform.
Steemit’s service is similar to other social content sites like Medium, but since it is not operated by one centralized organization, the majority of funds can be distributed directly to contributors, incentivizing a larger repository of future content.
The more positive votes on a piece of content, the more the creator gets compensated in Steem tokens, which can then be sold on the open market or used to vote and support other content. The value of Steem is pegged to the US Dollar and users are also rewarded for holding, mining, and trading Steem as well. The application for Steem has far-reaching ability, and can be applied to new, decentralized social media platforms outside of Steemit.
There are three aspects to the Steem cryptocurrency. Steem (STEEM), which serves as the unit of account and is easily exchangeable for other cryptocurrencies on the digital marketplace. Steem Power (SP), which fuels the network by locking Steem into a vesting schedule while also increasing user voting power. This also gives the holder a stake in the future growth of the platform. Lastly, Steem Dollars (SBD) are a currency that is convertible into $1 USD of STEEM tokens.
HOW TO BUY STEEM
Steem can’t be purchased directly for fiat currency, except for the purchase of proxy coins on decentralized exchanges. Most purchasers will have to first buy Bitcoin or Ethereum and then use an exchange like Binance to purchase Steem with the proceeds.
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