Why is a social networking site made with blockchain technology? Steemit.com is made with blockchain. What's the advantage?
Steemit is but one front end of the Steem blockchain. There are dozens of them many them created for various types of niche purposes. Steem is a generic blogging interface of which there are many. Steemit was the first web interface to the Steem blockchain and developed by the same company that developed the Steem blockchain software. Steemit does not own the blockchain, however, because a blockchain is a protocol. Each Steem node operator (called witness on Steem) owns their own hardware and runs the software with community approval.
The advantages of using a blockchain as the database for social media applications are the following:
A) Censorship resistance
When a piece of text is posted to the Steem blockchain, it stays there. Each front end can decide whether or not to show it but the chain will store that piece of content forever. When a post is edited by its creator who is the only one capable of that, it is replaced by a new post that shares the same identifier with the old one. When it is deleted it only means that the front ends know they shouldn’t show it. But it stays there.
Who follows whom is also stored on chain as well as all communications between content creators and their followers. They are safe from a central entity that may want to censor them for whatever reason they want. That’s because they CANNOT be censored by a centralized entity. This is a relief for content creators who long longer need to be afraid of shadowbanning, demonetization or getting banned outright by the platform they’re using.
Also, check out http://3speak.com, a video hosting platform that is working on providing a top-notch experience by combining centralized video delivery with a decentralized backup system. To paraphrase Princess Leia, the more YouTube tightens its grip, the more content creators will slip through its fingers. Ripe for discovery by 3speak to call their new home.
B) Monetization through tokenization
When a post is made on the Steem blockchain, it is subject to stake-weighed voting by users. Depending on the results of a vote during one-week voting period, the blockchain allocates that piece of content a share of the total reward pool made up of new STEEM tokens created in every new block. The tokens have value because they are traded on cryptocurrency exchanges around the world. It is much easier to monetize content on Steem than on most other platforms because STEEM is a cryptocurrency and because it greatly benefits from the ongoing cryptocurrency boom and also because the user base of Steem is still relatively small.
For more info on Steem, join the Steem Quora Space called The Steemian Roundup -link: Steemian Roundup