Steem is a blockchain centered on community engagement that offers users immediate ways to earn. The protocol is structured to reward participants according to the value they bring to the network, providing a space where individuals can share curated online content and receive cryptocurrency payments.

This public, incentivized blockchain database enables user interaction and compensation by combining social media and cryptocurrency technologies. To ensure contributors are treated fairly, the network employs a reward system that mirrors each user’s specific input.

Steemit was the initial application developed on the Steem blockchain, going live on July 4, 2016. The protocol aims to deliver value to its user community through the following methods:

• Supplying carefully selected news and commentary.
• Generating earning possibilities.
• Serving as a resource for answering user questions.
• Providing a stable cryptocurrency tied to the USD.

Dan Larimer, a blockchain developer, and Ned Scott introduced the initial application on the Steem blockchain, known as Steemit, in January. This platform functions like other social networking services but utilizes blockchain technology to operate as a decentralized, non-custodial system. Consequently, the network avoids the typical data issues associated with conventional social media platforms.

While conventional social media firms profit heavily from user-generated content, Steem distinguishes itself by compensating users for their valuable contributions to the network.

The platform is built on blockchain technology, appearing as the first of its kind. This architecture ensures a decentralized, non-custodial environment that prevents data abuse and downtime while keeping data secure. Participants receive cryptocurrency payments for their activity on the site.

Steem operates on a central tenet: contributors should be rewarded by owners, similar to how startups distribute shares during funding rounds. The team also aims to support community members by providing diverse financial services and opportunities.

Token Economics

In contrast to blockchains that rely on mining to generate new coins, Steem allocates the majority of its STEEM tokens to a rewards pool. As the protocol’s main coin, STEEM is distributed to platform users according to their contributions.

Witnesses, which are accounts responsible for creating blocks, add new blocks to the Steem blockchain every three seconds. Consequently, the network produces STEEM daily, distributing the newly created coins as follows:

• Authors and content curators obtain 75% of the newly generated coins.
• Holders of Steem Power (a different Steem cryptocurrency) receive an allocation of 15%.
• Witnesses are granted the remaining 10%.

Beyond STEEM, the ecosystem includes two other cryptocurrencies: Steem Dollars (SBD) and Steem Power (SP).

Following the acquisition of the company by Justin Sun, the founder of the Tron platform, Steem’s operations underwent a restructuring. Consequently, the network no longer utilizes proof-of-work, and new blocks are not generated through mining.

Instead of relying on proof-of-work, the protocol assigns witnesses to produce a block every three seconds. The Steem blockchain employs delegated proof-of-stake to enhance transaction speed and improve scalability on the platform. For each block they create, witnesses receive rewards in Steem Power.

Multiple cryptocurrency exchanges allow users to acquire Steem tokens, SteemPower, or Steem Dollars (SBD), and some even facilitate conversion into local currencies. Individuals without an existing account can purchase these assets via platforms such as Binance. Furthermore, STEEM and Steem Dollars are readily tradable for bitcoin, which may subsequently be exchanged for fiat currencies.