Steem: Powering Social Media Content Creators
Steem (STEEM) is a cryptocurrency that powers blockchain-based social media platforms. Users create and curate content on these platforms and get rewarded in STEEM depending on the number of upvotes or likes they get on their posts. Apart from being used to trade for fiat money or other digital currencies, STEEM is also used to increase users’ influence on these social network sites. Read on to know more about the features of this crypto coin.
Steem to Solve Problem Faced By Content Creators and Social Media Users
The cryptocurrency launched in 2016 along with the first blockchain-powered social media platform Steemit. The developers introduced the Steem network with the aim to incentivize online content creators such as bloggers, photographers, and artists. By doing so, creators do not have to resort to affiliate marketing or advertising in order to earn. Instead, they can focus on creating valuable content.
On the other hand, social network users do not need to pay for subscription to consume content, as they can read posts on Steem-powered platforms for free. These users can also get incentives when they engage with what they read. For instance, they get rewards based on their activities on a site, usually from upvoting and commenting on a post. As the number of upvotes on a post or a comment increase, the payout amount also increases. By rewarding both creators and curators, Steem’s creators hope that there will be more valuable content on social media.
Steem’s Three-Token System
Steem has three different kinds of tokens: Steem, Steem Dollars (SBD), and Steem Power (SP). Each of these coins has different purposes in the blockchain network. Here are the functions of each currency:
Steem is the fundamental unit of account in the blockchain. It is also the only token among all the three Steem tokens which you can trade for fiat or other cryptocurrencies. Both SBD and SP derive their value from the value of STEEM.
Steem Dollars (SBD)
The number of upvotes from your posts and comments represents your payout amount. Half of that amount is in Steem Dollars. SBD represents the amount of STEEM equivalent to US$1. You can trade this currency for STEEM or SP, although you have to wait for 3.5 working days before the STEEM equivalent gets credited to your wallet. You can also choose to hold your Steem Dollars in your account so that it can earn 10% annual interest rate.
Steem Power (SP)
The other half of your payout amount is in Steem Power. Unlike STEEM and SBD that are used as currencies, SP indicates your influence in the Steem-powered social network platforms. The higher your SP, the higher influence your votes have on the value of posts and comments. You can choose to convert this token to STEEM, although doing so will decrease your standing in the community. You must also keep in mind that you will receive the STEEM equivalent in equal distributions over a 13-week period.
Additionally, you have a choice to delegate Steem Power to another user. This means that the other user will receive the SP equivalent of your bandwidth, content votes, and curation rewards. However, you still own that SP, so your friend will not be able to cash out the delegated amount.
Take note that there is no better currency among these three digital assets. All these tokens have different functions that work together to help power the Steem blockchain.
Why Use Steem
Like other altcoins in the market, Steem has its own features that make it appealing to crypto users. Here are some of the advantages of using the digital currency:
No transaction fees
Currencies like Bitcoin and Ethereum charge users with small transaction fees. Steem, however, will not charge its holders any amount for sending and receiving crypto coins.
Simple wallet addresses
Compared with wallet addresses of other cryptocurrencies, Steem public addresses are easier to remember. Instead of depositing using a long string of numbers and letters, you will be using a permanent user name for your wallet. This saves you the effort of trying to store your addresses somewhere secure, because all you have to do is memorize your user name.
Although the wallet address is easy to remember, Steem still makes sure that all your data is secure. Your identity will remain anonymous, and the wallet does not require you to enter your personal information. Only your transaction data is stored publicly and permanently on the blockchain.
Fast transaction times
Steem is one of the altcoins with fast transaction speeds. Compared with Bitcoin, which processes seven transactions per second, this crypto is capable of processing thousands of transactions per second. As a result, it is able to make deposits and withdrawals quick for its users. When you send STEEM, you can expect the other user to receive the coins almost instantly.
Steem is the solution for online content creators who want to earn from their work. It is also an ideal coin for social media users who are aiming for convenience. If you use this altcoin, you will not have to worry about transaction fees and long processing times. Moreover, the rewards system in the social media network will encourage you to create and curate more content so that you can earn more incentives.