Normally I'd be posting some food and stuff right about now, but instead I want to talk a little about Steem. I do this occasionally :)
You may have read my post earlier today where I talked a bit about how I went out to dinner and was talking to a friend about Steem.
I was doing my best to give an easy-to-understand explanation of Steem to someone who knows nothing about blockchains.
Their understanding before our conversation was simply that there was some sort of digital currency called Bitcoin. They knew nothing more than that.
Their main curiosity wasn't really with blockchains, but it was more about content creation. They were confused at how Steem worked - where money came from, how creators got paid, what upvotes meant, etc. etc.
I figured that my explanation could use some refinement and there may even be a few people out there who could benefit from a simple explanation of the fundamentals of the blockchain. So here goes:
Steem is a blockchain that has the unique capability to host apps on top of the blockchain. Each block represents data on the blockchain - be it an upvote, a post, a comment, etc.
This data is accumulated in each block every 3 seconds and user-interfaces can "plug in" to the blockchain and use the data that is sent in each block to run an app.
The original app is the Steemit app which allows users to make written blog posts and comments. It also allows some other functionalities like wallet functions (transfering money, receiving money, managing your STEEM, etc.) and even some market functions like converting SBD to STEEM.
Other apps have since been built on the blockchain that allow for a plethora of new functionalities ranging from video games (Steem Monsters) to livestreaming and a youtube-esque video platform). New apps are being developed and this is one of the most exciting parts of the blockchain - nobody knows for sure what apps and functionalities will be available in the coming months and years!! Anything is possible!
Content creators who use these apps to proliferate content on the blockchain are paid out via the rewards pool. The rewards pool is a certain amount of STEEM (a fixed amount) that is distributed to users each and every day based on the weight of votes that they have received in the form of upvotes.
Not every vote is equal on the blockchain though. It's a stake-weighted system which means that whoever has the most STEEM powered up has the most influence over who gets what amount of the rewards pool.
Powering up your STEEM is a relatively simple concept to understand. It's just vesting your STEEM which means that your STEEM won't be as easily accessible (only way to access SP is to power down and receive 1/13th of the total amount of your SP every week for 13 weeks).
What do you guys think about my explanation? Is it pretty simple for "noobies" to understand?