Steem is a decentralized cryptocurrency launched two years ago, which runs on Steem blockchain, which drives Steemit social networks and a blogging platform. This digital currency can not be mined as bitcoin.
Instead, the block chain assigns most of the newly created STEEM tokens to a reward fund, which is used to pay Steemit users for their contribution to the platform. In addition, Steem, like most cryptocurrencies, can also be used to make digital payments on an equal basis.
In addition to the Steemit platform, there are also a handful of other social networks that support it, such as Steepshot, Busy and the Esteem application.
Currently, Steem has a market capitalization of 1.5 billion dollars and is among the first 25 largest cryptocurrencies. Its daily trading volume is around 50 million dollars, and can be traded in leading exchanges such as Bittrex and Poloniex, among others.
What is it?
It is a platform for creating content and social networks without censorship, similar to Reddit, which financially rewards users in the form of cryptocurrency for contributing and creating content.
Steemit has managed to increase its user base to more than 500,000 in less than two years, as it has become particularly popular among cryptocurrency enthusiasts in developing countries who see the value of being financially rewarded for their content contributions in the platform.
When you set up an account in Steemit, you will have access to three different digital coins in your Steemit wallet that are: Steem (STEEM), Steem Power (SP) and Steem Dollars (SBD). To contribute to the platform, you can earn the three digital coins mentioned above as rewards.
Steem (STEEM) is the cryptocurrency that drives the Steemit network. Steem can be used on the Steemit platform to obtain Steem Power (SP) through a process called "on" or to buy Steem Dollars (SBD). As a liquid digital currency, it is convertible into fiat currency and other digital currencies in cryptocurrency exchanges such as Bittrex, Poloniex, UpBit and HitBTC. STEEM also dictates the value of the rewards paid to users for contributing to the platform.
Steem Power (SP) is the internal currency of the Steemit platform that can not be exchanged in digital currency exchanges and that has two functions. First, it provides users with more influence on the platform to receive higher rewards and second, Steem Power offers holders a share in the Steem rewards package.
Steem Dollars (SBD) is another internal currency on the Steemit platform. Steem Dollars are effectively promissory notes that are worth a dollar in STEEM tokens when they are exchanged. The idea behind the Steem Dollar is to avoid a volatile exchange rate of the internal currency of the platform. The Steem dollar can also be traded on several major exchanges and has a market capitalization of around 50 million dollars with a daily trading volume of approximately 25 million.
