Everything you need to know about Steem (STEEM), a social network that works with the block chain.
Steem represents a fusion of ideas, taking advantage of both social networks and cryptocurrencies to create a new type of platform. Anyone can create, share or promote content on the Steem network, earning cryptocurrency tokens based on performance within the community.
Steem's main platform, called Steemit, is a social network built on top of the Steem block chain. Steemit is similar to popular social networks like Reddit and Medium, but rewards users with cryptocurrencies for their participation. Is that how it works:
Fundamentally, the more value a given portion of content gives to a larger number of people, the more individuals responsible for creating and curing that content can gain.
Users cast votes, creating a hierarchy of content. The more votes a post has, the more STEEM will win. The platform also allows negative feedback, giving participants more flexibility when it comes to rating content.
Steemit is meritocratic, which means that users who have more money can cast votes with greater influence.
How is Steem different from Bitcoin?
Both Steem and Bitcoin were designed with a particular function in mind. Bitcoin was created to serve as a digital currency, person to person. Steem is, in essence, a platform for social networks. Many social media platforms use voting systems, such as up voting, shares or "like", to prioritize the content. Steem incorporates these concepts into a single platform based on the chain of blocks that pay STEEM users for their contributions to the network. While STEEM and Bitcoin are cryptocurrencies, the use of STEEM is specific to social networks.
Steem has three cryptocurrencies
There are three digital tokens that make up the Steemit ecosystem: STEEM, Steem Power (SP) and Steem Dollars.
1 STEEM. STEEM is the fundamental cryptocurrency of the Steemit network. STEEM can be exchanged for Bitcoin or other cryptocurrencies through several outstanding exchange platforms. However, to cast votes, you must turn your STEEM into Steem Power (SP). This process is known as "on". You can also convert STEEM into Steem Dollars.
2 Steem Power (SP). When you convert STEEM into SP, you are investing it in the network as capital. A STEEM unit, vested as SP, equals one vote. Those with more SP to contribute have the most influence over what content rises to the top. The ascending and negative votes, or "flags", of users who have large amounts of SP are worth more than those of users with less SP. In addition, around 90% of the new STEEMs that are created are intended for users who have a large amount of SP, which creates an incentive for participants to re-invest their profits in the network. The speed limits are valid when you convert SP again into STEEM, known as "off".
3 Steem Dollars. Steem Dollars, valued at 1: 1 with the US dollar, is a unit used to represent a short-term debt. The celebration of Steem Dollars is described in Steem's technical document as a way to give the community the value of a US dollar, which is designed to encourage growth.
How to get STEEM?
There are two ways to get STEEM: buy it or earn it. You can buy STEEM on several popular crypto exchange platforms, including Poloniex, Bittrex and ShapeShift. Buying STEEM is probably the fastest way to acquire this currency. Winning STEEM is achieved by getting involved with the Steemit community, posting content, commenting, sharing and networking. The more valuable contributions you make, the more STEEM you should earn.