Steemit Defined
Steemit is a blogging and social networking website that makes use of its Steem blockchain-based rewards platform for publishers. The Steem blockchain produces Steem and Steem dollar that are magic bean tokens acquired for posting, upvoting and commenting on content material.
Type of site
Social news community
Available in
Mainly English
(content is also available in several other languages, e.g. German or Spanish)
Website
www.steemit.com
Registration
Free. Mandatory for editing.
Users
Over 871,918
Launched
March, 2016
Current status
Active
Steemit, Inc. Is a privately held organization based totally in new York city and established in Virginia. The organization was founded via Ned Scott, and Dan Larimer, author of BitShares, and EOS.
History Of Steemit
On July 4, 2016, Steemit, Inc. Formally launched Steemit, a social media with digital foreign money rewards that runs over the Steem blockchain. On July 14, 2016, Steemit introduced on their website that they were hacked. The attack, in step with them, has compromised approximately 260 accounts. A bit much less than US$ 85,000 well worth of Steem dollars and Steem are pronounced to have been taken through the attackers.
General Ideal Of Steemit
User accounts can upvote posts and comments similar to different running a blog web sites or social information web sites like Reddit, and the authors who get upvoted can receive a economic praise in a cryptocurrency token named Steem and US dollar-pegged tokens called Steem dollar. People also are rewarded for curating (coming across) famous content. Curating involves voting remarks and post submissions. Vote power and curation rewards are inspired through the quantity of Steem energy(Power) held with the aid of the voter.
Steemit includes third-party packages, such as d.Tube, a decentralized video platform based on the InterPlanetary file gadget (IPFS) protocol. D.Tube is just like YouTube, but with out advertisements, rather uses the integrated Steem foreign money which receives awarded by using users upvoting films.
Monetary System
Steem is primarily based on the Smart Media Tokens (SMT) protocol, evolved by way of Steemit. As of December 2017, CoinMarketCap.Com listed Steem with a $475 million market capitalization, and ranked Steem tokens 32nd of 1,358 cryptocurrencies. User actions, such as upvoting helps Steem's evidence-of-brain(prove-of-brain algorithm) set of rules, which additionally factors within the Steem power a user holds, to provide incentives for content creators and the network with the aid of moving small amounts of the Steem token currency.
Steem started with a quite inflationary deliver version, doubling roughly each 12 months. But, because of network demand, on December 6, 2016 the inflation price of Steem turned into modified to 9.5% in step with year decreasing by means of 0.5% consistent with 12 months.
Usage And Media Coverage
As of Nov 2017, there are extra than 450,000 Steem accounts. After an initial public beta for which no bills had been made, the tough fork on July 4, 2016, noticed $1,300,000 of Steem and Steem dollars paid out to Steemit customers. In keeping with employer reports, considering the fact that October 2017, $30 million have been paid out to over 50,000 users.
The alternate charge of Steem in comparison to Bitcoin rose continuously in the course of July 2016, peaking at a price of over 4 US dollars. July 20, 2016, Steem had a primary tremendous peak of market capitalization with about 405 million US dollars. As of December 16, 2017, its market cap is 525 million US dollars.
Steemit was described as a novel and "disruptive blockchain-based media community" by Adam Hayes (Investopedia) in July 2016. It got media coverage in cryptocurrency- and business-related media. Author Neil Strauss, a Steemit member, wrote an article for Rolling Stone calling its reward distribution "particularly clever" and echoing the sentiment of its disruptive potential.
Andrew McMillen defined in wired Steemit's function being rooted in 777transparency with every vote and switch being viewable to the public from upvotes on posts to wallet transfers. Not like maximum digital currencies which might be hard to access for the majority of the world with none money to invest, Steem gets rid of the friction for the common person to join within the cryptocurrency international with the aid of permitting income via posting without needing to shop for in first.
Criticism
Joe Lee, co-founder and CIO of digital foreign exchange platform Magnr, told CoinDesk "Whether Steem succeeds as a digital currency will be more a reflection of Steemit’s success as a platform as opposed to the economics of the coin itself. This is a good example of a digital currency whose value will be closely affiliated to its utilitarian value as a social networking and sharing platform."
"I'm skeptical about 'appcoins'/'appchains,' and Steem is very much one," stated algorithmic trader Jacob Eliosoff.
Decentralize.Today published an overview of the platform and blockchain, pointing out how the developers did not allow users to mine Steem and then relaunched the currency to assure centralization (whoever owns the majority of the blockchain can authorize other people's transactions). Tone Vays said that the system is a Ponzi scheme.
References
Steem white paper
Steem SQR Database
Steemit Website Hacked, CEO Promises to Reset Accounts in 48 Hours". Cointelegraph. July 15, 2016.
Wikipedia.
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