How Steemit manages to payout to so many members? The common explanation that 10% of the mining results goes towards content makers and participants on #steemit is a confusing to a layman like myself. Is there anyone who can explain this clearly in simple layman terms?
Maybe members listed below can help to answer this?
Cryptocurrency mining is the process that creates new crypto tokens (bitcoin, doge, etc).
This process is secure and can't be manipulated.
Now imagine that you mine a block with 100 tokens. Instead of taking all the 100 tokens for you you get only 90 tokens and 10 goes to a "pool". This is on the source code and those tokens can't be stolen by the miner.
The tokens from that pools are what we, steemit users are getting from posts.
I hope it is clear enough, english is not my mother tongue.
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@kranga Does this not mean that mining is much more profitable than posting contents here? Especially when miners get 90% of the coins mined.
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Only if you have the proper hardware, crypto mining need specific hardware, like CPUs, GPUs and ASICS, they are expensive and it wastes a lot of power.
Looks like steem just uses CPU, so if you have a good processor on your computer you can gie it a try, you will also need cheap power prices or solar power in order to make profit of mining.
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Welcome!
Come to visit me. I'm a #photographer, and vote my photos:
photoshoot-kickboxer
Next photoshoot
photoshoot Anime
Parable about the photographer
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if you want to give mining a go it is profitable but you need to know how to work your powerful gear. the blockchain is what stores and gives everything steem related its security and reputation.
but you must be accessed as one of the official twenty steem miners and manage to secure witnesses that trust and respect your efforts, otherwise you will not make any money for your expenses nor efforts...
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@crok Could you elaborate further on this? Maybe create a post on the steps to mine #steem?
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I also still full of many questions
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Good article, upvoted!
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