Social Media: The Phenomenal Rise of Steemit

Steemit is one example of a new blockchain created from scratch, introducing a gift or sharing economy based on a novel cryptocurrency called STEEM; it has rapidly risen above most other cryptocurrencies in terms market capitalization, becoming the 3rd largest and worth over $2.00 per STEEM at the time of writing.

While traditional social media sites make money from users without giving them a slice, Steemit is a social media site backed by a cryptocurrency that rewards users for original, creative content as well as for voting on and curating quality content. After signing up, users can upvote blogs, videos and so on to generate a payout to the author. By buying-in or earning STEEM, users can increase their voting influence and exposure of their content. The white paper can be found here.

Another novel feature is that half of the payouts paid to users is in the form of STEEM Power which are long term vests in the platform, linked to the value of STEEM. However, STEEM Power can only be withdrawn over a period of two years in 104 payments, limiting the potential selling pressure and incentivizing long-term growth of the network.

Furthermore, Steemit’s blockchain does not rely on transaction fees instead leaving the community to upvote and downvote data stored on the blockchain. This has proved to work so far as accounts that were copying others people’s posts were found rapidly and the community engaged in a cohesive way to downvote the fraudster and reduce their payout to zero.


Whole article is here:
https://btcmanager.com/news/blockchain-and-the-rise-of-the-prosumer/