The exponential speed with which Steem grows can quickly provide a solution to the scale problem that the Bitcoin community is facing.
Steem is a digital currency behind Steemit, a decentralized social media platform that rewards posters and voters online. Bitcoin scaling has become a hot button issue in the community. This is the process of increasing the block size compared to the current form in which the network can support up to seven transactions per second to process more as Paypal achieves at around 100 transactions per second, and as Visa does at around 4,000 per second.
In the aftermath of the Steemit hack
Steemit was recently hacked, with around 260 accounts compromised.
David Wachsman responded to those who claim that the hack was intentionally organized by Steemit as false.
He wrote via email:
“Without even presenting it to the Steemit team, I can tell you that the insinuation is completely disgraceful and false. Once the problem was identified, the Steemit team worked heroically and tirelessly to protect the community. The Steemit team continues to work extremely hard to get things back to normal as quickly as possible. CEO Ned Scott may post updates on the situation on the Steemit website from time to time and we intend to share it with the media whenever possible. "
Catch up with the DAO
With Steemit touted as the bridge that has the ability to bring people who are not interested in cryptocurrency into his world, Steem has overtaken the DAO to be the fifth most valuable cryptocurrency in the world after its 1000% plus growth in the days after Steemit's first cryptocurrency payment on July 4. After the $ 1.3 million giveaway campaign, the number of transactions, messages, votes and new users who signed up for Steemit's decentralized Reddit platform tripled.
In a press release, her CEO, Ned Scott says:
“After the successful payment on July 4, consumers have seen that our system really works. Daily users jump aboard our social network and many early adopters have benefited from this. People are starting to say that they have paid their rent with money earned on Steemit. Others have bought cell phones, washing machines and even paid their electricity bills. We may have built the first Blockchain application that anyone can use. Content makers and curators enjoyed earning valuable crypto rewards through a fun and seamless experience. "
Steemit is on its way to becoming one of the largest and fastest growing cryptocurrency projects worldwide in less than three months after its launch. Since Steem reaches millions of people the following year, it could potentially stifle Bitcoin's capacity if all people were to use Bitcoin as a gateway to buy in and / or pay out each month.
Eeks wrote in a message on Steemit that Steemit is the killing app that Bitcoin has been waiting for to bring fresh and diverse people to Bitcoin and cryptocurrencies.
The writer says that Bitcoin companies and their products do nothing for people outside the one percent who know and use Bitcoin. He calls Purse.io closest to a Bitcoin killer app to convince people outside of the cryptocurency community, but has not had much luck so far. The same applies to OpenBazaar, Bitcoin gambling sites and P2P loan sites, which have given these people no reason to give or need Bitcoin, except for speculative purposes.
By analogy, the author concluded on the basis of the available figures that the new social media site could acquire at least one million active Bitcoin users in a year.
“And if it happens as I expect, Steemit will attract 1 million or more people on board a year. These are 1 million people who feel more comfortable with crypto and find it useful and related. That is a huge victory for Bitcoin and crypto. The value of each cryptocurrency are the people involved and the network effects that they bring, all made possible by the underlying technologies and their usability. 1 million more active users in the secret world of cryptocurrency seems a valuable relief. Although it is not even a Bitcoin project, it seems that Steemit may be Bitcoin's killing app. Bitcoin holders rejoice. "
In a message from dantheman about Steemit, the writer says:
“If Bitcoin and other cryptocurrencies want to take advantage of Steem's appeal to new people for cryptocurrency, they need to solve the scalability problem much faster than previously expected. Loss of scale means that the market can completely ignore them. "