A Beginner’s Guide to Steem

Cryptocurrencies has evolved to include a wide range of uses, some are far more creative and legitimate than another. One implementation of a unique technology of blockchain can be seen in the Steem, blockchain social media-based platfor

Whether The STEEM?
Steem is blockchain custom that is responsible for content creators and participants useful site steemit.com. Through a complex algorithm, participant sites, content creators, and miners receive some combination of payment from the platform of three currencies: Steem (STEEM), Steem dollars (SBD) and Steem Power (SP).

Steemit.com has evolved since it was launched on July 4, 2016, now a record 1 million unique users per day and about 10 million unique users each month. While most of the content on the platform related to the cryptocurrency, have also been a number of very popular account dedicated to topics such as games, travel, lifestyle, and works of art. The unique nature and highly incentive platform has captured the interest of thousands of content creators, including individual very involved and actually realized to the community cryptocurrency.

How does it work?
The distribution of the three currencies mentioned above incentivizes compact all participants in the network — from visitors to the miners and the creator. Similar to Steem Bitcoin, in blockchain based on the algorithm of the proof-of-work (PoW). However, it is very different in the distribution of prize mining. Unlike other coins and Bitcoin PoW, only 10% of Steem block prizes awarded to miners. The remaining 90% are scattered among two groups: content creators, which includes original posters thread commentator, as well as the holder of a power of Steem. Content creators receive 75% of all the coins that were minted, and holder of the SP was given 15% other. The current inflation rate of Steem is 9%, and will reduce with. 5% per year until reaching level. 95%.

The power of Steem is the main component that drives the system, such as the value of the content decided by voters who hold the Steem power. Steem power acts as a variant of locked out of Steem. When users "power up", they will transfer their funds to Steem SP at a ratio of 1:1. To turn back, they must enter the "power down" phase, where the power of Steem changed back to Steem, with one-thirteenth the SP were disbursed once a week for 13 weeks.

Users are rewarded for powering up to Steem strength because it gives weight to give their votes. Steem Power each holding the same amount of weight, so the votes from users who hold, for example, 100 SP took ten times the influence as the voice of the user that holds 10 SP. The greater the weighted votes (number of votes which is multiplied by the the influence of each voice), post a comment or other compensation received.

Rather than keep the investment as the liquid Steem, supporters of the platform has incentive to lock their holdings as liquid Steem strength because they appreciated, first and foremost, with 15% of the new supply printed. This, the SP role occupants to determine what the content would be appreciated. The more they are worth better content, in theory, the greater their investment will be wasted, because more people will interact with the platform and invest in the Steem if better content is shared.

Lastly, content creators share 75% produced coin. The amount received is partly distributed as Steem and Steem dollars, and is directly proportional to the number of votes they receive. Content creators will be invited to share fewer, high-quality post than to kill the junk, as compensation is entirely based on the acceptance of society, with every post that gets a number of basic $0.

Trending posts, those which receive the most weighted votes in a 24 hour period, are rewarded with hundreds or even thousands of dollars.

Empower users
STEEM is different from most other cryptocurrencies in that users do not need to sacrifice the money or hardware to gain a significant advantage. Anyone who puts in the time and effort to contribute to a meaningful and interesting content has the ability to potentially earn thousands of dollars. The above post has been getting more, reaping Awards well into the five figures range. The post can include any and all topics; well accepted a post in the past including everything from make-up tutorial for analysis cryptocurrency the Board.

In addition, knowledge of the crypto entirely does not constitute a condition for the use of the platform or be successful. An active member in the Steemit.com is as simple as running your own blog or Tumblr account. Anyone with the knowledge or desire to blog are invited to join the hundreds of thousands of individuals who actively participate in Steemit now.

What's coming up?
Steem's developer is actively working on a great addition to a custom blockchain: Smart Media Token. Smart token representing the specific alternative Media that are very intuitive, content to Ethereum from Protocol token. With this evidence, there are forums and other content creation platforms can create their own signs to be distributed to the community of users, supporters, and creator.

Smart Media Token Issuers will have the ability to run the ICOs, selling tokens, or freely distribute them (as with Steemit.com) to members of their community. In addition, the forum and other groups will be able to combine a number of Smart Media token to create an immersive environment, multiple tokens, every token-based Steem who became very determined for the role of creators looking to play.

Price history
Shortly after the launch of Steemit.com, a large explosion see STEEM prices, touched a market capitalisation of nearly us $400 million in mid-July the year 2016. During this period, the third-highest cryptocurrency STEEM is appreciated, behind only Bitcoin and Ethereum. However, the big bang, it brings some of the shortcomings inherent in the system. Most importantly, a handful of Steem papal authority had almost complete control of the distribution of the coins and the direction of the content, such as the weight of their ownership gives them total power to choose any post up, so helpful poster (often own) with thousands of dollars of Steem and Steem dollars.

The massive hype, combined with the exposure of flaws, led to a market cap devaluation of over 95% between July 2016 and March 2017, when Steem reached an all-time low market capitalization of just over US$15 million. Fortunately, this trend reversed during the overall altcoin explosion in June and July of 2017. While Steem appreciated modestly relative to many others, it maintained the uptrend through January of this year. At that time, the coin experienced an explosion even greater than the first one, and Steem achieved a market cap of almost US$2 billion. Currently, one STEEM is valued at US$4.07, and the market cap of the coin is just over US$1 billion.

Steem can be traded on a number of exchanges, although the most popular options include Binance, Bittrex, and Poloniex.

Conclusion
Steem and its platform, Steemit.com, represent a massively used, pragmatic utility that continues to grow. Despite its early flaws, its developers have undertaken over a dozen forks of the blockchain in order to improve the fairness and efficiency of the platform. At rank #26 on coinmarketcap.com, Steem is certainly not an unknown or highly undervalued currency, but it does still have plenty of room to grow.

If speculators like the concept of Steem but are concerned about the price or other factors, there are a couple of smaller, newer alternatives worth looking into. One is Simdaq, a social media platform allowing traders to communicate and buy/sell trading algorithms and bots. This coin has only just completed its crowd sale and is traded on the Waves Decentralized Exchange. Another is Scorum, another social media platform that is dedicated to sports and sports wagering. This project is currently in the main stage of its crowdsale, and has sold just over US$5 million worth of tokens, with a hard cap of US$17 million.

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