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About Steem
Key Points
- Steem is a community-focused blockchain that rewards users with cryptocurrency for their valuable contributions.
- Steemit, the first app on Steem blockchain, launched on July 4, 2016.
- Founders: Ned Scott and Dan Larimer.
- Unique features: decentralized, non-custodial, and rewards users with cryptocurrency.
- Token Economics: STEEM is the primary coin, distributed to users based on their input.
- 75% of new coins go to content curators and authors, 15% to Steem Power holders, and 10% to witnesses.
- Security: uses delegated proof-of-stake,
About Steem: Empowering a Decentralized Social Ecosystem
Introducing Steem (STEEM): A Revolutionary Blockchain-Based Social Media Platform
Steem is a community-centric blockchain that presents a unique opportunity for instant earnings, empowering its users to capitalize on their value within the network. By design, the protocol rewards users based on their contributions, providing a platform where they can share curated content online and receive cryptocurrency compensation.
The protocol constitutes a publicly accessible, incentivized blockchain database, facilitating interactions among users and rewarding their participation. By synergistically combining elements from social media and cryptocurrency, it empowers users to derive value. The network ensures equitable treatment of contributors by implementing a reward structure that accurately reflects each user’s contribution.
Steemit, the pioneering application built on the Steem blockchain, officially launched on July 4, 2016. The protocol is designed to deliver value to its user community in the following ways:
- To furnish discerning readers with carefully curated news and insightful commentaries.
- Fostering an environment that presents opportunities for financial gain.
- Serving as a trusted resource that provides authoritative answers to users’ queries.
- Introducing a stable cryptocurrency, pegged to the US dollar, to ensure stability and reliability.
The Visionaries Behind Steem: A Founding Story
Ned Scott, in collaboration with blockchain developer Dan Larimer, pioneered the launch of Steemit, the inaugural application on the Steem blockchain, in January. This innovative app shares similarities with other social network platforms, but its utilization of blockchain technology sets it apart, rendering it a decentralized and non-custodial entity. Consequently, the network is immune to the common data-related pitfalls that plague traditional social platforms.
Unveiling the Unparalleled Attributes of Steem
Notably, numerous traditional social media conglomerates have capitalized on the content generated by their users. In stark contrast, Steem distinguishes itself by providing a unique value proposition, empowering its users through a reward system that acknowledges and compensates them for their valuable contributions to the platform.
One distinctive attribute of the network lies in its blockchain-based infrastructure, a pioneering feat in its class. Consequently, it operates on a non-custodial and decentralized framework, ensuring uninterrupted uptime and impervious data security, thereby safeguarding platform data with utmost precision. Furthermore, users are incentivized with cryptocurrency rewards for their active participation on the platform.
Steem is founded on a fundamental principle: that contributors to a venture should be compensated by its owners, akin to the manner in which startups distribute shares during funding rounds. At its core, Steem is committed to serving its community members by providing a diverse range of financial services and opportunities.
The Circulating Supply of Steem (STEEM) Coins: An Overview
The Token Economy
In contrast to other blockchains that generate new coins through mining, Steem adopts a distinct approach, allocating the majority of its coins (STEEM) to a rewards pool. As the primary coin of the protocol, STEEM is distributed to users on the platform in proportion to their contributions.
Witnesses, the designated block-creating accounts, perpetually augment the Steem blockchain at a rapid pace of one new block every three seconds. Consequently, the network yields a daily output of STEEM, with the freshly minted coins being distributed in the following manner:
- A substantial 75% of newly minted coins are allocated to content curators and authors, serving as a testament to their invaluable contributions.
- A further 15% of the coins are distributed among users who hold Steem Power, another cryptocurrency within the Steem ecosystem.
- The remaining 10% is reserved for witnesses, who play a pivotal role in the network’s operation.
Besides STEEM, there are two other notable cryptocurrencies: Steem Dollars (SBD) and Steem Power (SP), each with its unique characteristics.
The Steem Network’s Security Mechanisms: A Robust Framework
Following its acquisition by Justin Sun, the founder of the Tron platform, Steem underwent a significant operational overhaul. As a result, the creation of new blocks is no longer facilitated through mining, and the network has transitioned away from the proof-of-work consensus mechanism.
The protocol eschews traditional proof-of-work mechanisms, instead opting for a scheduled witness system that generates a new block every three seconds. This approach, which leverages delegated proof-of-stake, enables the Steem blockchain to achieve enhanced transaction speeds and scalability. As an incentive, witnesses are rewarded with Steem Power for each block they successfully create.
Where to Acquire Steem (STEEM): A Comprehensive Guide
Various cryptocurrency exchanges facilitate the purchase of Steem tokens, SteemPower, or Steem Dollars (SBD), as well as their conversion to local currencies. For users without an existing account, crypto exchanges like Binance provide a convenient platform for buying. Moreover, STEEM and Steem Dollars can be effortlessly traded for bitcoin, which can subsequently be converted to fiat currencies. Click here to access more information about crypto on the CMC blog.
Ned Scott formerly held the position of Business Operations and Financial Analyst at a prominent
In 2012, Gellert Global Group, an American food importing company, marked the beginning of a significant chapter in his professional journey. It wasn’t until 2015, however, that he crossed paths with Dan, his future partner, with whom he discovered a shared passion for similar interests.
Dan Larimer is a visionary software engineer and serial entrepreneur, renowned for his trailblazing innovations in the realm of blockchain technology.
Fascinated by the vast potential of blockchain technology, decentralized exchanges (DEXs), and cryptocurrencies, Dan co-founded Steem alongside Ned Scott, serving as the Chief Technology Officer (CTO) until his departure from the company in 2017.