Cryptocurrencies are usually considered as the be all of Blockchain Technology. Unfortunately, there still prevails this myth that anything one does with Blockchain technology will be restricted to cryptos. This is partially true. After all, cryptos are the fuel for Blockchains to operate. Hence, when we see an ecosystem that talks about changing the way popular social media operates, one begins to pay attention.
We are all witnesses to the massive amount of data mining that has been undertaken by popular social media platforms without our consent. Due to this we can term them unstoppable & unpredictable. At the same time, we need to keep in mind that we do have a tool that has a potential to curb such instances and work in our favor and not against it. Blockchain technology can create a massive impact by disrupting social media platforms. But, for that, it needs a unique ecosystem that caters exactly for this purpose. Steemit is the answer!
Origin of Steemit
Steemit, a social media platform powered by Steem Blockchain, where users are rewarded with virtual currencies was launched on July 4th, 2016. This startup was co-founded by Ned Scott, CEO, and Daniel Larimer, CTO.
This was started with idea, where Steemit is developed to give the solutions in context of social media. After observing and studying several Blockchain-based business models, they came up with a thought that most powerful and useful thing to control the cryptocurrency is community.
And later, the idea about insurance and mutual aid came out, which would help people and them to connect with each other if they need some assistance for solving problems.
This idea became a big vision for Steemit, and as a result it was launched, where people get rewarded for posting and voting on content.
This platform is using its STEEM Blockchain technology to redefine the world of both social media and technology. It is a Blockchain based social media platform, where users get rewards for their contributions made, which includes content sharing, commenting, and participating in debates over various topics. Steemit rewards their users with the reward units that are Steem Dollar (SBD) and Steem Power (SP).
Well, talking about Steemit, this isn’t all.
As we said, Steemit is a Blockchain-based platform for users and publishers to monetize content, where they get rewarded in return of it.
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Basically, there are 3 digital tokens that explain all about Steemit, which are:
1. Steem (STEEM)
STEEM is the Blockchain cryptocurrency that is used to power Steemit. It is the basic foundation cryptocurrency unit, which is also used to determine the value of other units on Steemit.
STEEM is a token, which can be traded, converted or can be exchanged with Ethereum, Bitcoin, and other cryptocurrencies on various crypto exchanges. However, you can also convert STEEM to Steem Dollars (SBD) and Steem Power (SP).
2. Steem Power (SP)
STEEM has a thirteen-week vesting schedule, known as Steem Power (SP). Here vesting ownership makes a long-term commitment, which can’t be sold for a minimum period of time. This token balance is non-transferable and cannot be traded easily on crypto exchanges.Users who can contribute more SP, have the greatest influence on the distribution of rewards, which provide exclusive powers to users within the platform.
When you convert STEEM into Steem Power, this process is called ‘powering up’ and in case of vice-versa, it is called ‘powering down’. Users who power down, their SP is returned over a period of thirteen weeks. Users can also hold vested SP, as they get 15% of yearly inflation as interest on it.
3. Steem Dollars (SBD)
Steem Dollars is the unit used for rewarding users on posting and curating content. The value of each SBD is equivalent to 1 US Dollar ($1). It is a guarantee that whenever user wants to convert SBD to cash, he/she will get the 1 USD for each SBD user earned.
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What Could Users Do?
In crypto world, most investors look for investments from where they can get large profits in a short period of time. But, Steem doesn’t work like this. They are trying to build a community that entirely comprises of users who have long-term perspectives, to provide them additional benefits within the platform.
As we said earlier, Steem is just a fundamental unit behind Steemit, where real dollars are converted into Steem Power or Steem Dollars. But, no user would want to keep Steem for so long, as it will lose value with time. Instead user would go for a decision where either:
- Steem is converted back to US Dollars.
- Or, Steem is converted to Steem Power, which is for long-term commitment and is locked for 2 years within the network and can’t be cashed out before the time of 2 years.
- Or, it is converted to Steem Dollars, which can be cashed out whenever user wants or can also be kept for long time commitments.
We may talk a big game about how Steemit is the next kid on the block for social media disruption, but we are aware that it has a long way to go to properly unleash its potential. Keep your eyes open for this one folks as it sure is going to touch the moon!
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