Steemit: a blockchain-based platform
What is steemit?
Steemit is a company founded by Ned Scott and Dan Larimer in Febuary and has is beta launch a couple of weeks ago, since then it has been grown in size and content. Basically it is a platform like reddit where people can vote and comment on made post by other users. There are two big differences between Steemit and other blogging site (like reddit):
The main difference between other platforms and Steemit is that Steemit don’t use central database. Instead Steemit exists over a distributed, decentralized network based on blockchain technology, the same technology that powers digital currencies such as Bitcoin and ethereum.
The other difference is that people are getting paid by other users with steem, which is just over 2 USD according to coinmarketcap. For this to happen Steemit uses an algorithm to determine the value of each user's contribution, the more often a user contributes to the platform, the more their influence grows.
The main focus of Steemit is supporting social media and online communities by rewarding users with steem.
What is steem?
Steem is a crypto-currency just like the most well-know bitcoin and it is fundamental for the growing community on Steemit. Each year the amount of steem doubles, but there is a snag in it: every 3 and one third there is a self-generated reverse split (10:1) in the supply, resetting the process. For example:
Year 0: 5000 Steem
Year 1: 10.000 Steem
Year 2: 20.000 Steem
Year 3: 40.000 Steem
Year 3.32: 50.000 Steam (reverse split now occurs)
Steem can be converted in three other ‘steems’:
- Just steem: you can convert this back to cash and spend it on groceries or bills.
- Steem power: making a commitment to add value to the steem network for 2 years.
- Steem dollar: adding value to the network and also liquid so you can convert it to cash.
I like to see it in this way:
- I have my free steem and want it in cash and don’t want to be part of steem or Steemit.
- I think this system is great, I want to contribute to this awesome system.
- I’m not quite sure if it is a great system so I’ll make up my mind later.
My conclusion?
Steemit is a novel use case for blockchain technology - a decentralized social media platform that rewards its users in steem, for publishing content based on upvotes. The market decides where they want to go and by doing so the people who add worthy content on the platform get rewarded by it, as it should be.