Steem

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This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Steem?

Steem (STEEM) is a blockchain-based social media platform that rewards users with cryptocurrency for creating and curating content. It operates on a decentralized network, incentivizing users to engage with the platform by distributing STEEM coins based on the value they bring to the network.

How is Steem used?

Steem (STEEM) is a cryptocurrency used on the Steem blockchain, a decentralized social media platform. Here are the key ways it is used:

  1. Content Creation and Curation: Users earn STEEM by creating and curating content on Steemit, the flagship app of the Steem blockchain. The content includes posts and comments, and the curation involves upvoting posts and comments to distribute rewards to the creators.

  2. Rewards System: The Steem blockchain rewards users for creating and engaging with content. The rewards are distributed in the form of STEEM tokens, which can be converted to other cryptocurrencies or fiat currencies.

  3. Steem Power (SP): Steem Power is a measure of a user's influence on the platform. Users with more Steem Power have more influence over the distribution of rewards. Steem Power can be earned by staking STEEM tokens for a minimum of 13 weeks, and it can be converted back into STEEM tokens in installments.

  1. Steem Blockchain Dollars (SBD): SBD is a stablecoin pegged to the U.S. dollar. It can be earned as rewards and converted to STEEM tokens based on market forces.

  2. Decentralized Applications (dApps): Steem supports over 300 dApps, including Steemit, DTube, and Utopian. These apps use STEEM tokens for various purposes, such as rewarding users for creating content, coding contributions, or other activities.

  3. Trading and Conversion: STEEM tokens can be traded on exchanges and converted to other cryptocurrencies like Bitcoin, which can then be converted to fiat currencies.

Overall, Steem (STEEM) is used to incentivize users to create and engage with content on the Steem blockchain, fostering a community-driven social media ecosystem.

How do I store Steem?

To store Steem (STEEM) tokens, you have several options:

  1. Steemit Platform Wallet: This is the most convenient option, especially if you are a content creator on Steemit. The wallet is automatically created when you sign up for an account. It allows you to send, receive, and store STEEM tokens, and it is decentralized, making it secure. However, it lacks two-factor authentication and allows you to view your private keys when logged in.

  2. ESteem Wallet: This is a mobile wallet app available on both Google Play and the Apple Store. It is user-friendly and allows you to send, receive, and store STEEM tokens. It is linked to your Steemit account, so you need to use your Steemit private keys and password. It is a secure option as long as your mobile phone is not compromised.

  3. CLI Wallet: This is the safest option, as it connects directly to the Steem blockchain client. However, it requires knowledge of Command Line Programming and is not user-friendly for beginners. It is ideal for those who need to store large amounts of STEEM tokens.

These wallets offer different levels of security and usability, so you can choose the one that best fits your needs.

How to buy Steem?

To buy Steem (STEEM) tokens, you have several options:

  1. Create Content and Get Rewarded: You can earn Steem tokens by creating and curating content on Steem-based social apps like Steemit, DTube, and Utopian. Sign up for Steemit to start contributing and earning tokens.

  2. Buy from Blocktrades: As a Steem account holder, you can purchase STEEM, Steem Power, or SBD (Stablecoin) using other cryptocurrencies like Bitcoin, Bitcoin Cash, Ether, and Dash.

  3. Buy from an Exchange: Steem-based tokens are listed on various exchanges such as Binance, Bittrex, Upbit, and GOPAX. You can buy Steem tokens directly from these exchanges without needing a Steem account.

  1. Use Kriptomat: Kriptomat provides a simple and secure way to buy Steem tokens. You can sign up for a free account, complete the onboarding process, and then purchase Steem using various payment methods like SEPA bank transfers, credit/debit cards, or Skrill/Neteller.

  2. Use KuCoin: KuCoin supports buying Steem tokens through a centralized exchange. You can create an account, verify your identity, add a payment method, and then purchase Steem using fiat currency or by exchanging other cryptocurrencies.

  3. Trade CFDs: You can also trade Steem CFDs (Contracts for Difference) on platforms like Capital.com, which allows you to speculate on the price difference without owning the cryptocurrency itself.

  1. Other Exchanges: Additionally, you can buy Steem from other exchanges like OpenLedger, as mentioned on Steemit.
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History of Steem

Steem (STEEM) is a cryptocurrency that was launched in 2016 by Steemit, Inc., a company founded by Ned Scott and blockchain developer Dan Larimer. The platform is designed as a decentralized application (DApp) built upon the Steem blockchain, which rewards users with STEEM for creating and curating content. Users can earn STEEM by publishing posts, commenting, and upvoting content, with the payout determined by the votes from other users.

The launch of Steem was marked by a Proof of Work (PoW) consensus algorithm, which was experimental and unproven at the time. The initial block reward was 1.000 STEEM, and the long-term inflation rate was approximately 112% APR. However, the PoW algorithm was soon outpaced by GPU miners and faster mining algorithms, leading to challenges for the BitShares team.

Steemit, the social media platform built on the Steem blockchain, was launched on July 4, 2016. The platform allowed users to create and curate content, earning STEEM in the process. However, the platform faced a significant hack on July 14, 2016, which compromised around 260 accounts and resulted in the loss of approximately $85,000 worth of Steem Dollars and STEEM.

In March 2017, Dan Larimer stepped down as Steemit's chief technology officer and left the company. The platform continued to face challenges, including financial difficulties during the 2018 cryptocurrency crash, which led to significant layoffs. In 2020, Steem successfully forked, resulting in the creation of the HIVE blockchain.

Today, Steem remains an innovative blockchain-based social media platform that rewards users for their content with STEEM coin.

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How Steem works

Steem (STEEM) is a blockchain-based cryptocurrency that powers a decentralized social media platform called Steemit. Here is a detailed explanation of how it works:

Steem Blockchain

The Steem blockchain is a publicly accessible distributed database that records all posts, votes, and transactions. It is where all text content and voting data are stored, and where reward calculations and payouts are performed.

Steem Tokens

There are three tokens in the Steem ecosystem: Steem (STEEM), Steem Power (SP), and Steem Blockchain Dollar (SBD). STEEM is the primary unit of account and is used for various purposes within the platform. SP tokens give holders increased voting power and influence in the network. SBD is a stablecoin pegged to the US dollar but currently has a market-determined value.

Delegated Proof-of-Stake (DPoS) Consensus Mechanism

Steem uses a unique DPoS consensus mechanism. This mechanism utilizes decentralized network nodes to validate transactions with the help of staked crypto. Steem validator nodes are called "witnesses" and receive 10% of block rewards from each new blockchain data block. The network sends 75% of the STEEM tokens from block rewards to the network’s reward pool, which is distributed to content creators and curators. The remaining 15% goes to SP holders.

Bandwidth and Transaction Fees

Transactions on the Steem blockchain have zero fees to enhance accessibility and encourage adoption. To prevent spam attacks, a bandwidth-limiting mechanism is in place. Users have a limited amount of bandwidth to use each week, which is replenished over time. Users with more SP tokens have a higher bandwidth allowance. If a user exceeds their bandwidth limit, they cannot transact until their bandwidth recharges or their limit is raised.

Content Monetization

Steem provides a groundbreaking solution for content creators to earn rewards for their contributions based on the quality and popularity of their content. The platform's unique algorithm calculates rewards based on user engagement, including upvotes and comments. This incentivizes creators to produce high-quality content that appeals to the community.

Steemit and Other Apps

Steemit is the first and most popular social app on Steem. However, various additional apps use the Steem network to power their communities and reward users for their activity. These apps include D.tube and Dlive, among others.

Governance and Community Building

Steem focuses on community building by providing developers with a framework for launching decentralized social platforms. Users can participate in the governance of social platforms by holding STEEM tokens. The network rewards curators and creators for contributing to the community through comments, content, and interactions.

Performance and Scalability

The Steem blockchain can process 1,000 transactions per second, with the potential to scale up to 10,000 transactions per second when necessary. Transactions on Steem take three seconds on average, making interactions with Steem apps relatively fast.

Overall, Steem is a decentralized social media platform that rewards users for creating and engaging with content. It uses blockchain technology to incentivize users to produce high-quality content and interact with each other, creating a community-centric ecosystem.

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Steem's strengths

Steem (STEEM) has several strengths that contribute to its unique value proposition:

  1. Decentralized Social Media Platform: Steem is a blockchain-based social media platform that rewards users for creating and curating content. This decentralized approach allows users to maintain control over their content and rewards them with cryptocurrency for their contributions.

  2. Reward System: Steem incentivizes users to engage with the platform by providing rewards in the form of STEEM tokens. This encourages users to create high-quality content and interact with others, fostering a community-driven environment.

  3. Fast and Fee-Free Transactions: Steem uses the Delegated Proof-of-Stake (DPoS) consensus mechanism, which enables fast transactions with a block time of just three seconds and no fees. This makes it an attractive platform for users who value speed and cost-effectiveness.

  1. Community Governance: Steem allows users to participate in the governance of social platforms by holding STEEM tokens. This gives users a say in the direction and development of the platform, ensuring it remains community-focused.

  2. Diverse Applications: Steem supports a wide range of decentralized applications (DApps), including Steemit, a popular blogging platform. This diversity of applications helps to expand the ecosystem and attract a broader user base.

  3. Innovative Approach to Social Media: Steem's blockchain-based infrastructure and reward system set it apart from traditional social media platforms. This innovative approach has the potential to revolutionize the way social media operates and rewards user engagement.

Steem's risks

Steem (STEEM) is a cryptocurrency and the native token of the Steemit platform. While the sources provided do not specifically discuss Steem (STEEM) risks, they do cover various aspects of steam systems and existential risks. Here are some general risks associated with Steem (STEEM):

  1. Market Volatility: Steem (STEEM) is subject to market fluctuations, which can result in significant price changes. This volatility can lead to financial losses for investors.

  2. Security Risks: Like any cryptocurrency, Steem (STEEM) is vulnerable to hacking and other security threats. If the Steemit platform or user wallets are compromised, it can result in the theft of Steem tokens.

  3. Regulatory Uncertainty: The regulatory environment for cryptocurrencies is still evolving and can be unpredictable. Changes in regulations or laws could negatively impact the value and usability of Steem (STEEM).

  1. Adoption and Competition: Steem (STEEM) faces competition from other cryptocurrencies and social media platforms. If Steemit fails to attract and retain users, the value of Steem (STEEM) could decline.

  2. Technical Issues: Technical problems or bugs on the Steemit platform can disrupt the functioning of Steem (STEEM) and impact user trust.

These risks are common to many cryptocurrencies and are not unique to Steem (STEEM). It is essential for investors and users to be aware of these risks and take necessary precautions to mitigate them.

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Did Steem raise funds?

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Steem’s team

  • Ned Scott: Co-founder and CEO of Steemit, Inc. He is a former financial analyst who collaborated with Dan Larimer to create Steemit.
  • Dan Larimer: Co-founder and former CTO of Steemit, Inc. He is a software engineer who has created several blockchain projects, including BitShares and EOS.

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