What is Steem?

Steem is a blockchain-based platform that aims to compensate users for their contributions to the network. It is designed to create an instant compensation opportunity for users based on their value to the network. Steem is a publicly available, incentivized blockchain database that allows users to interact with each other and receive compensation in return. It leverages technologies from both social media and cryptocurrency to provide users with value. The network aims to ensure the fair treatment of contributors by running a reward structure that reflects each user’s contribution. Steem is the primary coin of the protocol and is produced by the network daily. The new coins are distributed to content curators, authors, and users with Steem Power holdings.

How does Steem work?

Steem operates on a model of one-STEEM, one-vote. Under this model, individuals who have contributed the most to the platform, as measured by their account balance, have the most influence over how contributions are scored. Steem only allows members to vote with STEEM when it is committed to a vesting schedule. Under this model, members have a motivation to vote in a way that aims to maximize the long-term value of their STEEM. Steem is designed around a relatively simple concept: everyone’s meaningful contribution to the community should be recognized for the value it adds. When people are recognized for their meaningful contributions, they continue contributing and the community grows.

What are the potential use cases for Steem?

Steem aims to support social media and online communities by returning much of its value to the people who provide valuable contributions. Users become platform stakeholders, maintaining control over their data, and receiving cryptocurrency compensation for each contribution they make. Steem is designed to enable effective micropayments for all kinds of contribution by changing the economic equation. Readers no longer have to decide whether or not they want to compensate someone from their own pocket, instead they can vote content up or down and Steem will use their votes to determine individual rewards.

What is the history of Steem?

Steem was launched in 2016 by Ned Scott and blockchain developer Dan Larimer. The first app built on the Steem blockchain was Steemit, a platform where users can post curated content online and receive cryptocurrency compensation. After the company was bought by Justin Sun, founder of Tron platform, there was a restructuring of Steem’s operations. Therefore, new blocks are no longer created through mining and the network does not use proof-of-work. The Steem blockchain uses delegated proof-of-stake to aim to improve transaction speed on the platform and make it more scalable.