The Steem blockchain is a platform that allows monetization of published content and creative content on the platform. The blockchain runs on Smart Media Digital tokens, STEEM (STEEM), that are also used as a reward on the system. The posted content on the platform should be unique and creative. These users who post new content are adding value to the blockchain by inviting more people on the site as well as keeping the existing users entertained. The content is then left for curation where users vote, report scams, flag posts while evaluating the content. This ensures the best of content is placed on the site with the right information being transferred.
This production and curation process is then evaluated using the ‘wisdom of the crowd’ to determine the value and impact the post has had on the blockchain then rewards both authors and curators accordingly.
Steemit Social Platform
Is there a difference between the Steem blockchain and Steemit? Yes there is. The Steemit platform is the social side of the Steem blockchain. The platform is created on the Steem blockchain, it is part of the Steem blockchain. The platform however, works in a similar manner as its parent chain where authors and curators produce, evaluate and upvote content and get rewarded. The rewards are made in Steem Power (SP) or Steem Dollars (SBD) which can be redeemed for dollars on the site. STEEM is the underlying currency in both of these tokens, but they offer different values to the user.
Steem Power (SP)
Steem Power is STEEM in itself with some certain rules underlying the token. The token is used to ensure that startups have the necessary long term support they require. First, the SP token is held by users for a 13-week maturity period after which they can be converted or held. Through the token the startups can derive value from long term commitments with their investors giving them a development boost.
Steem Blockchain Dollars (SBD)
The Steem Dollars are used as a security on STEEM. They are comparable to the convertible bonds most startups use to raise debt capital. SBD are token-convertible-dollars that enables blockchains to grow their network effect while maximizing the return for token holders. Once you hold the tokens you can convert them at any moment to STEEM or Dollars.
Parting Shot
Steem (STEEM) is one of the best performing coins in the cryptocurrency market this April as the price increased by more than 100%. In a month that has seen most of the coins hit green and erase most of the losses in Q1, STEEM has exceled even better. The STEEM token briefly touched a 2 month high this Saturday at $3.50, representing a 139% increase from its $1.46 price at the start of April. The growth is remarkable considering the decrease in overall visits per month on the Steemit platform.
The rapid rise of this small cap coin has it placed fourth on the monthly best performing coins amongst its peers. Steem (STEEM) is currently ranked at position 31 on Coinmarketcap with a total market capitalization of $770 million USD. The coin is well poised to reclaim the $4 price tag with an increasing focus on marketing after the recent cryptocurrency ban on social sites.