Steem (STEEM) Review – Crypto Coin Judge
Ever since Social Media Token (SMT), a local digital asset, powered by Steem (a blockchain-enabled content monetization platform) was launched, it has been controversial for having an interesting mix of supporters as well as detractors. Exactly 1.5 years ago, this altcoin was branded as the third largest cryptocurrency by its market capitalization. In addition, this content monetization system is working towards merging social media and cryptocurrencies (Augur, Binance, Monacoin, etc.). Put simply, it is designed to monetize online content with incentives to attract increased user engagement.
Steem – The Tangled Analysis
What is Steem is all about?
It is an altcoin as well as a Blockchain-enabled content incentivizing system constructed and designed around the concept that each and every strategic contribution to the social networks must be measured by a value. The more informative and useful the content is, the greater reward it earns the person who created it. The value of the content is determined by community votes. The rate of Likes and Dislikes are two key drivers in this matter. Subsequently, this vote is incentivized by the curators of the content, depending on the votes.
How does Steem operate?
It is powered by Blockchain technology Graphene, which is also used by BitShares. Graphene is capable of processing more than ten thousand transactions per second. But that’s not all. Graphene also enables an ecosystem to handle Reddit users with more than the standard number, which is exactly why users of Steem are always increasing.
Solutions and benefits
The online community, which contributes constructive and useful information to online social networks deserves rewards and this is the defining idea of the platform – to reward the people who are directly involved in constructing a valuable social media network. They think that it will encourage more users to come and be part of the social media content monetization.
1 – Its Blockchain technology has been successful in generating leads to their platform. It handles more than ten thousand actions in a second.
2 – Rewards are greater in comparison to other digital asset management platforms and points can be redeemed within 24 hours.
3 – Industry people benefit hugely from the platform including, creators, remitters, curators, shoppers, market makers, entrepreneurs, merchants, bloggers, referrers, community leaders, and internet leaders amongst many others.
4 – The world’s major social networks such as Reddit, Twitter, and Facebook have witnessed companies earn billions of dollars of profit through the content generated by their members. However, this altcoin platform has taken a different path. It rewards the people who contribute valuable content to these networks with its local digital asset, named SMT.
5 – Lastly, the platform has a fair accounting system that reflects the contribution made by the community by simply maintaining transparency and accountability.
Innovation that sets Steem apart
Ever since Blockchain technology disrupted the fiat industry and tokenization increased in popularity, the conventions of Finance and Industry have been set aside. Steem has also changed the entire scenario of the same market by incentivizing community contribution to social media networks. For this to happen, the platform powers SMT (Social Media Token), an innovative way of monetizing online communities and content, on the basis of a battle-tested blockchain system. Below are some essential highlights, which prove that this system is the best innovation thus far:
1 – Content creators and publishers no longer struggle to benefit from their virtual content as the platform itself acts as a paying subscriber of social content.
2 – Fewer ad-blockers and higher ad revenue.
3 – Donations and tips are now feasible, as the expense of micro-payments’ processing is gone.
4 – Publishers have no more problems with Facebook and Reddit taking all the profit, as there is someone else to reward their efforts.
5 – SMT enables content contributors to generate an equally advantageous community on the grounds of incentives to steer platform growth.
6 – SMT quickly monetizes online content, as it is a native digital asset, powered by Graphene Blockchain technology.
7 – The currency is similar to ERC-20, but it has default ‘Proof-of-work’ properties and rewards system for SMT allocation.
8 – Proof-of-work, unlike other currencies in the market, rewards algos for the communities to feel encouraged and thus curate more and more content in the future.
9 – Reward allocation is enabled by the ‘likes’ based upon algos or by the ‘upvote’ system integrated into the platform to bring incentives into line and applies between owners and communities.
SMT mining process – how efficient is it?
SMT mining is different from most virtual tokens as the block creation is programmed every 3 seconds. Accounts that are engaged in generating new blocks are known as Witnesses and are measured by the community ‘upvote.’ The whole process is called ‘Delegated Proof of Stake’ (DPoS). Although its DPoS is sometimes a concern, the mining is considered tremendously efficient if compared to other mining processes. It subsequently allows the platform to deal with a greater volume of transactions than most cryptocurrencies (Litecoin, DASH, Populous, etc.).
Some benefits of SMT’s unique mining method
1 – SMT’s delegated Proof of Stake system has eliminated transactions since the platform constrains micropayments.
2 – Unlike many virtual tokens, SMT mining doesn’t encourage transaction fees in order to prevent network spamming thus enabling licit transactions throughout.
3 – Graphene, the Blockchain technology automatically adjusts if there is any maximum bandwidth offered to the users when the network becomes busy.
Where will you store your SMTs?
Types of tokens and wallet storage process
You will find multiple types of tokens on the platform: Steem, Steem Power (VESTS denomination) and Steem Dollars (SBD). While Steem and SBD are liquid asset, Steem Power is not. When making transactions, when you are paid, you can choose 50% payments in Steem Power and 50% in SBD. Users can also choose to be paid 100% in Steem Power.
Various ways to earn Steem (in-platform Cryptocurrency and an altcoin)
The system encourages three different ways to earn this altcoin as a participant of the community. The process is relatively convenient and has greater rewards available as virtual tokens. As on the website, community participants can earn SMTs by:
Posting: By composing and posting content on social network, you can expect to receive community upvotes, on the basis of which you will receive a share of the current Steem reward pool.
Curating and Voting: If you stumble upon a post and vote on it before it goes viral, you will earn rewards for curation. However, the final amount of reward is determined by the total Steem Power you possess.
Purchasing: Users are allowed to buy SBD Tokens and store them in its in-platform wallet, Steemit. The currencies you can use to buy SMTs are Bitcoin, BitShare tokens, and Ether. You will be surprised to learn that this altcoin has been made available through other exchange platforms as well, such as BlockTrades, Bittres, Shapeshift.io, Changelly and Poloneix.
The Steem wallet setup process
The official website of Steemit has an in-platform wallet facility. You have to sign-in to the website, where you will also create a wallet. Now, store your digital assets in the digital wallet (Ethereum Wallet, Augur Wallet, etc.). In addition, you will find a command line of wallets from where you can download it.
eSteem is the mobile wallet, serving as a mobile interface to the social media platform, enabling users to leverage key traits of the website as well as transfer digital assets.
Differences that set Steem apart from Bitcoin
1 – Bitcoin priced at $0.008 back in 2010 (1 year after its launch in 2009), whereas this altcoin is priced at $3.63 today (1.5 years after its launch in 2016).
2 – It is mined through writing, whereas Bitcoin is mined with hardware.
3 – While Bitcoin transfer fees are getting higher, through the Steem ecosystem you can make transfers at much cheaper fees.
4 – Steem transfers are faster and transparent, while Bitcoin lags behind by a few points.
5 – You can know the identity of recipients, if the recipient agrees, when dealing with this altcoin.
6 – In Bitcoin’s world, delegation of power isn’t possible, whereas in Steemit, the holder can lend its power to someone else and also make sure he or she gets it back.
In addition to all these features and traits, Steem is not only a crypto coin, it is more of an ecosystem that helps monetize social media content with tokenized rewards.
Offerings and Supplies (S refers to Steem)
When the brand came into force, it started with the supply of 0 currency and distributed Steem through proof of work at 40S a minute to the miners. Then, 40 more Steem generated the seeding of content and for curating reward pools 80S generated a minute. After this, the network was enabled to reward the miners, who transformed into SP. At this stage, Steem is growing at the rate of 800S a minute because of the mutual upshots of multiple Contribution Rewards condensed below.
1 – Content generation rewards: 1S each block or, if you prefer, 3.875% in a year – whichever is superior.
2 – Curation rewards: 1S a block or 3.875% in a year.
3 – Rewards for block creation: 1S a block or 0.750% in a year.
4 – Rewards for POW inclusion pre- and post- block 846,000: 1S a block, and rewarded as 21S a round (before block 846,000) and 0.0476S a block and awarded as 1 Steem a round. Or, you can count 0.750% in a year.
5 – Rewards for liquidity: 1S a block and awarded as 1200S an hour or 0.750% in a year.
1 – Rewards of Steem Power: 9 Steem is allocated among all Steem Power holders for creating a single Steem.
Steem Dollars Rewards
1 – SBD rewards: A portion of SBD value is generated at the APR, determined by the Witnesses and rewarded to SBD holders as SBD.
The Bottom Line…
The original idea behind the creation of this cryptocurrency is pretty interesting. It is virtually a mashup of Reddit and Quora, backed by strong financial incentives to create informative and useful content that can be shared and easily read on social networks. Its success as a digital currency will have a great impact on the growth of Steemit, the wallet platform. Steem is currently considered to have proved its functional value as a sharing and social networking platform.
We are all fairly active on social media, in fact we are sometimes more present there than we are in our real world, but we have never been rewarded or paid for the contribution of informative or useful content to social networking platforms. Steem is here to stay and to change the way things have been managed thus far. It is here to encourage and enable more and more users to come online, contribute their piece of informative content to social networking platforms and be rewarded in exchange. It is, put simply, incentivizing online content creation and sharing, as well as encouraging, a community where only quality content will matter.
In a nutshell, it is a revolutionary cryptocurrency for social networks powered by Blockchain technology. It is targeting a huge impact on the vibrant and bustling social media world as its rewards are designed to encourage an increasing number of users to get engaged in more constructive activity.
Of the block rewards, 90% is distributed to vest fund in order to reward PoW miners and reward curators. The remaining 10% is converted to liquid and used to reward content composers.
- Total coins supplied: 99692126
- Total coins mined: 99692126
- Proof type: PoW