What Is Steem and How Does It Work?

2019-02-11 08:56:24 · 1980 views · 3 min read

What Is Steem?

 

Steem* is a social blockchain that grows communities and makes immediate revenue streams possible for users by rewarding them for sharing content. Steem has been operating for over 3 years and hs provided a scalable blockchain protocol for publicly accessible and immutable content, along with a fast and fee-less digital token (STEEM) which enables people to earn the currency by using their brain (“Proof-of-Brain”).

 

How Does Steem Work?

 

Compared to other blockchains, Steem stands out as the first publicly accessible database for immutably stored content in the form of plain text, along with an in-built incentivization mechanism. STEEM, the Steem’s token makes it both “smart” and “social” compared to other cryptocurrencies like Bitcoin and ETH. STEEM has two new token features. One is the “rewards pool” - a pool of tokens dedicated to incentivizing content creation and curation. The other one is a voting system that leverages the wisdom of the crowd to assess the value of content and distribute tokens to it. These two unique properties when combined are referred to as Proof-of-Brain, which is an entendre based on proof-of-work (PoW)  to emphasize the human work required to distribute tokens to communities.

 

As for the rewards for content creators and curators, Steem token systems that reward users as they contribute to a token-based community system require mechanisms for establishing and evaluating content’s social value. These tokens get distributed to various actors in the system based on the defined rules of the blockchain. These actors, such as content creators, witnesses, and curators, compete in specialized ways for the tokens.

 

Under “one-STEEM, one-vote” model, individuals are able to vote with staked-tokens to determine the allocation of rewards - For those who have contributed the most to the platform, as measured by their account balance, have the most influence over how contributions are scored.

 

Steem has already surpassed Bitcoin in a number of transactions and is able to scale to support 10,000 or more transactions per second. Because of Delegated Proof of Stake (DPoS), the Steem blockchain is able to generate a new block every three seconds with a minimal computational load. By all means that Steem can process more transactions and hold more information, including content.

 

Steem’s Platform Features:

  • Primitives Designed for Content Applications

  • Native Name System

  • Steem Blockchain Dollars (SBD)

  • Decentralized Exchange

  • Hierarchical Private Key Structure

  • Multi-Sig Authorities

  • Multiple Reward Beneficiaries

  • Smart Media Tokens (SMT)

  • Stolen Account Recovery

  • Security Through Time-Locks

 

*Source: Steem Bluepaperhttps://steem.com/

 

A Quick Steemians Starter Kit

 

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