INTRODUCTION.
Steemit gives users monetary rewards for any meaningful contribution to the platform. Of these contributions the most important are:
- Creating or posting content which the other users consider valuable (like)
- Finding valuable content and upvoting it
The mechanism is designed so that the users decide what is valuable and who the rewards go to. Each user has a certain voting-power, which determines how much weight the vote has. More voting-power can be acquired by earning rewards or by purchasing it. There are also many other ways to contribute to the platform and earn rewards, but which are more technical. More information can be found on https://steem.io .
Rewards are payed in a dollar-equivalent currency, which can be converted to any other currency. The currency can be easily used inside the steem-network by sending it directly to another user anywhere in the world. Users are payed interest if they invest the earned rewards in the platform.
The Steemit -site is a front-end to the steem-blockchain. This means no content is censored, and the blockchain (all contents and history) can be accessed from any other current or future front-end. Anyone can freely create an app or frontend to the blockchain, but Steemit is the first and most complete one.
Steemit requires no log-in for consuming content, but for posting, commenting and recieving rewards a username is needed. At the moment one can use a Reddit or Facebook profile to get started. Each new user gets 3$ to get started.
Steemit: This is the platform itself, in other words, it allows the users to create as well as curate the content, and you can look at as Reddit. The platform was launched in 2016; however, it has witnessed a tremendous growth in the user base. The users are rewarded for the content they post on this platform in either Steem Dollars (SBD) or Steem Power (SP).
(1)STEEM TOKEN (STEEM): STEEM, on the other hand, is the blockchain that powers the platform. It is, in fact, the basic unit that determines the value of all the other units on Steemit. As mentioned above the other units consist of Steem Dollar and Steem Power. STEEM is not really a currency, although it is more or less the gateway in between Steemit (the platform), and the platform currency (Steem Dollar) and even the general currency (Steem Power). Steem utilizes Smart Media Tokens, which are native digital assets on the Steem blockchain. They are much like Ethereum’s ERC20 tokens, but incorporate particular built-in ‘Proof-of-Brain’ properties together with a token distribution reward system that is developed for the digital content businesses. The Steem (STEEM) token is tradable and can be converted to either Bitcoin or Ethereum.
(2)STEEM-DOLLAR (SBD)Users are rewarded for their contributions on the Steemit platform in this cryptocurrency unit referred to as Steem Dollar (SBD). It is connected to the dollar and essentially represents the Steem equivalent of one US dollar. It is vital to note that SBDs are not fixed; rather, they fluctuate depending on the current conditions in the market. They usually earn a 10% interest per year. SBD can be converted to STEEM, exchanged to STEEM on the internal market, in addition to being exchanged on various exchanges such as Bittrex or OpenLedger DEX.
(3)Steem Power (SP)
This currency is not tradable on external exchanges; however, it can be referred to as the internal “currency’ on the Steemit network. Investing in Steem Power (SP) can be viewed as acquiring a stake in STEEM. It offers various advantages to users of Steemit, for instance, they get a direct stake in the Steem reward pool, besides, their voting power rises which can mean that the user can vote to increase the author rewards including oneself.
In conclusion, STEEM is the determinant of the value of rewards in the Steemit ecosystem. Besides, it is also the proof-of-stake for the users who hold Steem Power (SP). The Steem Dollar (SBD), on the other hand, provided stability of the other currencies on the platform. TOGETHER WITH STEEMIT, WE RULE WORLD. Follow at Follow @sky10net/feed