Steem is operated on a delegated proof of stake system that allows a very small group from the BitShares network have complete control over the network. About 10-15 people decide without any community input on all code changes, hard forks and control all the mining and delegate/witness system. They DPOS is called this the whitness system in this client(it is forked from their other crypto Bitshares), they are elected and take rewards from the network. Since they have over 50-80% of the network weight, they can just vote for themselves and to be witnesses. It appears to also have a very limited sha256 mining system too which they also mostly control. It appears they may even purposely leave it undocumented and leave in incorrect help commands to make the process difficult for outsiders. Also the economics give them all the voting power so they can have the power to remove the money held in what is essentially a ponzi system. First in first out.Then there is the centralized UI, that is obviously a massive security issue since it is a single point of failure, it runs javascript wallets, which are not particularly secure. I believe it has already been hacked because of that. It also happens to be closed source, most likely to prevent others from running their own nodes.So its not even federated in the way previous decentralized social networks were, its centralized and being advertised as decentralized. They function closer to a permission ledger.
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