Blockchain technology has come a long way since its inception in 2008. Initially, it was just a means to facilitate peer-to-peer transactions without a central authority. However, the potential of blockchain technology goes beyond that. One of the most promising applications of blockchain technology is social media. In this article, we will discuss the power of Steem, a blockchain-based social media platform that is changing the way we interact online.
What is Steem?
Steem is a blockchain-based social media platform that rewards content creators and curators with cryptocurrency. It was created in 2016 by Ned Scott and Dan Larimer, who also created BitShares and EOS. Steem is a decentralized platform where users have complete control over their data and can interact with each other without the need for intermediaries. Steem allows users to create and share content, vote on content, and earn cryptocurrency for their contributions.
How Steem Works?
Steem uses a unique consensus algorithm called Delegated Proof of Stake (DPoS). DPoS is a consensus algorithm that was introduced by Dan Larimer in 2014. DPoS is a faster, more energy-efficient alternative to Proof of Work (PoW) consensus algorithm used by Bitcoin. In DPoS, users (or stakeholders) delegate their voting power to a small number of trusted nodes called witnesses. Witnesses validate transactions and create new blocks. Steem has 21 active witnesses who are responsible for creating new blocks and maintaining the integrity of the network.
Steem uses a two-token system: Steem and Steem Dollars (SBD). Steem is the base cryptocurrency that is used for all transactions on the platform. Steem Dollars (SBD) is a stablecoin that is pegged to the US dollar. SBD is used to reward content creators and curators. When a user creates or curates content, they receive rewards in the form of Steem Power (SP), which is a form of Steem that is locked up for a period of time. The longer the period, the more SP a user earns. SP is used to determine a user's voting power and influence on the platform.
Why Steem is Revolutionary?
Steem is revolutionary for several reasons. Firstly, it is a decentralized platform where users have complete control over their data. This means that users do not have to worry about their data being sold to third-party companies for targeted advertising. Secondly, Steem rewards content creators and curators with cryptocurrency. This means that users can earn money for creating and curating content that they are passionate about. This creates a more sustainable and fairer model for content creation compared to traditional social media platforms where content creators receive little or no compensation for their work.
Thirdly, Steem uses a unique consensus algorithm called Delegated Proof of Stake (DPoS), which is faster, more energy-efficient, and more scalable than the Proof of Work (PoW) consensus algorithm used by Bitcoin. This means that Steem can handle more transactions per second than Bitcoin, making it a more efficient platform for social media.
Fourthly, Steem has a two-token system that incentivizes users to hold Steem and Steem Dollars (SBD). This creates a more stable and sustainable ecosystem for the platform, as users are encouraged to hold onto their tokens rather than sell them for a quick profit. This creates a more long-term and sustainable model for the platform.
Finally, Steem has a vibrant and active community of users who are passionate about the platform. Steem has over 1 million users and has paid out over $40 million in rewards to content creators and curators. Steem is also supported by a number of high-profile investors, including Tim Draper, who is a