What is Steem?
Steemit coin is a type of Cryptocurrency used to power the Steemit platform - a social media platform based on the Blockchain platform. Users create and store their content on Steemit just like other news platforms like Reddit or Hacker News and are rewarded by Steem for their work.
History of the birth of virtual currency Steem
The project was established in 2016 by Ned Scott and Dan Larimer, creators of BitShares. They founded Steemit Inc., which runs the Steemit website and sponsors the development of the electronic money platform. On March 15, 1977, Dan Larimer announced his resignation from the company
The three major currencies of Steemit
- Steem
Steem is the basic unit of account on the blockchain Steem. All other units Steem dollars and Steem power derive their value from the value of Steem. No need for Steem in its Cryptocurrency form, it should be used to buy Steem dollars, Steem power or Bitcoin (See also: Bitcoin).
- Steem dollars
Steem dollars (SMD) is a unit used to reward users for posting and hosting content. Each Steem dollar represents a Steem equivalent of US $ 1. Steem dollars (SMD) are created so that the user is not affected by the oscillation rate of Steem coin.
SMD is essentially a promise, that when you come to withdraw cash, you will get a positive dollar with Steem of what you earn. Steem Dollars earn 10% interest every year.
- Steem Power
Steem power (SP) is Steem was signed in the contract smart and represents the amount of influence that an account has compared to the rest of the network. The more power Steem power accounts have, the higher the impact on their votes on posts or comments. Steem power also determines the weight of an account to vote for a witness.
Accounts are created with small amounts of Steem stored as Steem Power. Content creators can select 100% Steem power instead of 50% conventional currency and 50% Steem power. Users and investors can choose to turn Steem into Steem power, called Powering up.
Steem power can not be transferred or traded directly, but the account owner can choose to withdraw liquid Steem liquid on weekly payment at a rate of 1/13 of the total Steem Power of the account, called Powring Down. Accounts will lose the right to the proportion of Steem withdrawn.
How does Steemit work?
In some ways, Steemit is similar to other digital currencies. For example, Steemit's currency units can be bought and sold on the open market like all other virtual currencies.
With other secret terms like Bitcoin, real currency units are created every day and distributed to executives of a special Bitcoin software program on their computer that performs a process that is called Bitcoin digging. The amount of computing power
Steemit allows for currency mining, but that is not the main way to make money. Each day, Steemit currency units are created by the network and distributed to the participants of the site. The more you join, the more you will get.
