Steem Tips: Understanding Steem Wallet Security:Steem Power.
By @shortsegments
Your Steem wallet is unique amongst other cryptocurrency wallets and has several security features which are unique. I would like to review those security features, so you understand them and can use these Steemit wallet security features to help to prevent the theft of your Steem and SBD.
Security Feature number one: “Steem Power”
You are paid rewards on the Steemit platform for posting, commenting and upvoting in “Steem” or SBD.
The strength or value of your personal vote depends on how much “Steem Power” you have.
Your wallet has a menu option called “Powering Up”.
If you use this feature you change the Steem in your wallet into “Steem Power”. This Powering Up increases the value of your vote. But did you know that “Powering Up” your Steem or Steem Dollars to Steem Power is a security feature?
Powering Up is a security feature because you can’t withdrawal Steem Power, you have to convert it back to Steem.
The process of converting Steem Power to Steem is called “Powering Down”.
The Power Down process has rules, you can only Power Down 1/13th of all your Steem Power once every seven days.
So it takes 13 weeks to Power Down all your Steem Power to Steem. This is a security feature because most crypto currencies exist in one form and they only have one password, which is usually called your “Private Key”. So if someone gets your “private key” they can transfer your cryptocurrency out of your account to their account and basically steal all of it the same day. However in the case of Steemit our cryptocurrency exists in a liquid, easily transferred form called Steem or Steem Dollars and as a less liquid and nontransferrable form called a Steem Power. If someone gets your passwords and wants to withdraw your Steem Power, they have to initiate a “Power down”. This converts your Steem Power to Steem. Each “Power down” takes 7 days. Each “Power down” is limited to 1/13 th of your total Steem Power. So it will take someone seven days to steal your Steem and they can only get 1/13 th of your total Steem at a time. That means it takes 13 weeks to Steal all wyour Steem.
Second Part of this security feature
Did you know that every time you sign into your Steemit account and check your wallet it tells you if your “Powering Down” or converting Steem Power to Steem? So because it takes 7 days to “Power Down” or convert your Steem Power to Steem you have 7 days to catch any attempts to steal your Steem. If you see this and you didn’t start it the withdrawal you can cancel it and then use your Master password to change all your other passwords.
I like this security feature because I think it increases my wallet security and I think it increases price stability by reducing impulsive selling in reaction to bad news and it encourages commitment to the platform.
What do you think?
@shortsegments
