- What is Steemit
- How does Steemit work?
- The 3 Steemit Currency Units:
- What is a witness on Steemit?
- How are blocks created/scheduled?
- Why you should start now:
New millionaires and billionaires are being made every day from cryptocurrencies.
4But while there are winners and losers, too. Nowadays, everyone is talking about cryptocurrency investments.But questions remains the same:
- Which currency should we invest in?
- What are the best new crypto-coins in town?
- Where do we store such coins?
Here at CoinGyan, we provide you with detailed information on popular cryptocurrencies. So that you remain better informed about them and can make the best decisions to use them or also to invest in them or not.
Well, Today I will write about A Blockchain based Site called Steemit. Steem currently 18th coin by Market cap on with US$281 M
What is Steemit
Steemit is a blockchain based social network where you DO get paid for creating and upvoting content and comments. Steemit pays both the content creators when their work gets upvoted, as well as the people who curate the best content on the site by upvoting others work.
So Basically Steemit is a social network that looks and functions a lot like Reddit & Medium, but with one HUGE difference i.e Paying the user for actions in equity and cash.
Steemit is good for redditors, Facebook users, bloggers, videographers, teachers, YouTubers, artists, film-makers — anyone who is creating content and would like to be paid for it. The Steemit community is supportive, helpful and constructive.
The Advantages of Steem Are:
- Unlike bitcoin or ether, There is no fee to transfer f Steem or Steem Dollar to any account.
- You need 0 investment to start an account
- It’s free to use and when you upvote content you like you’re not spending your own money.
- No Need to copy the sending address as All addressess are human readable and memorable
- Nobody can delete your post because steemit stores it in a database which makes copies of itself all over the world (Decentralized Blockchain)
Freelancers can make a lot more money in Steemit than Fiverr
How does Steemit work?
In some ways, Steemit is similar to other digital currencies. For example, Steemit currency units can be traded, bought, and sold on the open market just like all of the other digital currencies.
With other cryptocurrencies like Bitcoin, the actual currency units that are created each day are distributed to the people who run a special bitcoin software program on their computers that perform a process called Bitcoin Mining. But Steemit is using Delegated proof-of-stake consensus model/
DPOS leverages the power of stakeholder approval voting to resolve consensus issues in a fair and democratic way. All network parameters, from fee schedules to block intervals and transaction sizes, can be tuned via elected delegates. Deterministic selection of block producers allows transactions to be confirmed in an average of just 1 second. Perhaps most importantly, the consensus protocol is designed to protect all participants against unwanted regulatory interference.
I will write Different consensus model soon.
The 3 Steemit Currency Units:
One big difference between Steem and other digital currencies is that there are three different kinds of Steemit currency units.
There is Steem, Steem Power, and Steem Dollars.
Steem is the units that are bought and sold for actual money on the open markets. You can trade them as you would bitcoins or a company’s stock. It’s volatile, subject to inflationary losses (Currently inflation is now 9.5% and drops continuously at a rate of 0.01% per 250,000 blocks ) but also easily exchangeable for Bitcoin and other cryptocurrencies at HitBTC, and Changelly (Best Rate).
For Mobile User Click Here to Exchange BTC to SEEM for Bets Rate.
Steem Power (SP) is STEEM that has been invested into the network as equity (a process called powering up). It can be converted back to STEEM (a process called powering down) in 13 equal installments disbursed once per week.
Also, the more Steem Power Units you have, the more your curation vote will count. You will have more influence on the site and you will also get paid more for upvoting other people’s work. (When you upvote someone’s work, they will get paid more as well.)
Steem Power Units also play one final and very important role. They prevent massive price swings and volatility on the open markets. Because everyone is locked in for 3 months, we can’t all sell our currency all at once if the market starts to dip, which would crash the price were it to happen.
Steem Dollars (abbreviated as SD or SBD) is conceived of as short-term debt instruments that are pegged 1:1 with the US Dollar.
They are designed to be a stable currency that you can sell at any time. When you create popular content, 50% of your pay will be in Steem Dollars.
And you’ll be rewarded for holding Steem dollars too. Because it still keeps the currency in the network, holding Steem Dollars pays interest(% Varies).
What is a witness on Steemit?
A STEEM witness is a person who operates a witness server (which produces blocks) and publishes a price feed of STEEM/USD to the network.
So, The Primary task is to produce blocks (thus process transactions), the second most important are to produce an unbiased price feed, which is how STEEM Dollars are always worth 1 US Dollar in STEEM.
You can read more about this on Someguy’s Post
How are blocks created/scheduled?
It’s not a very even mixture as you would hope. Blocks are produced in “rounds”, which are 21 blocks long, and blocks are created every 3 seconds.
During each 21 block round, the blocks are distributed as such:
- 19 blocks go to the top 19 voted witnesses (who are slightly shuffled to avoid witnesses purposely skipping blocks)
- 1 block goes to a Proof-of-Work miner, who becomes a witness for just 1 block.
- 1 semi-random witness outside of the top 19, which is influenced by their ranking
Whales, Dolphins, and Minnows
Since Steem is a meritocratic system and not a democratic one, some users have more voting power than others when curating content. This power comes from the user’s Steem Power holdings.
Users with huge amounts of Steem Power are called whales. A single vote on your content by a whale can add hundreds of dollars to your payout. Whales can calibrate the power of their votes now, so not all whale votes confer huge rewards anymore.
Users with a medium amount of Steem Power are called dolphins. One of their votes can add a few cents or a dollar to your payout.
Users with a small amount of Steem Power are called minnows. These users’ votes may add less than a cent to your payout. You will start out as a minnow unless you invest significant amounts of bitcoin into Steem Power (don’t risk anything you can’t afford to lose).
Don’t worry about these categories. Being a minnow doesn’t mean you’re doomed to fail. It just means you need to put something of value into the system, be that content curation, content creation, investment or something else. If you create valuable content on steemit then I can guarantee you can be a dolphin like @sweetsssj and even a whale.
How to Use your Wallet
To access your Steem wallet via Steemit.com. Click the person icon at the top right and select “Wallet” from the user menu or Go to your account page and Click on The Wallet placed in The secondary menu, right below your profile section
Here you’ll see your STEEM, Steem Power, and Steem Dollars balances. The system also gives you the estimated value of your account in US Dollars.
Each balance number has a small down arrow next to it. Click it to do something with your money (see below).
Keep in mind that every wallet on the system is public information. You can view anyone’s wallet but only interact with your own.
With your STEEM, you can transfer, Power Up, Deposit or Buy/Sell.
Use Transfer to send STEEM to another user. You can enter a memo (which is permanently recorded on the blockchain) to remind yourself later what the transaction was for. Many transactions are recorded under “History” at the bottom of the page. Transfers are immediate and fee-free. Never Ever Post your Password.WIF or any Keys on Memo
Use Power Up to vest your STEEM as Steem Power, which is like buying preferred stock in the Steem network. This takes effect immediately. As noted above, withdrawing your Steem Power is a slow process. SP is a long-term investment.
I personally suggest you to Power Up your steem so you can maximize your influence that will give you long-term gains.
Click the down arrow next to your Steem Power balance and you’ll find two options: Power Down and Deposit.
Use Power Down to begin the withdrawal of your Steem Power balance in 13 equal weekly payments of STEEM. You can stop this process at any time. If you power down, you will receive the first disbursement in one week.
Use Deposit the same as above, to convert bitcoin directly into Steem Power.
Click the down arrow next to your Steem Power balance and you’ll find three options: Transfer, Buy or Sell and Convert to STEEM.
Use Transfer to send Steem Dollars to another user, just like with the STEEM transfer menu mentioned above.
Use Buy or Sell to trade Steem Dollars on Blocktrade.
Use Convert to STEEM to trade your Steem Dollars in for STEEM. This is a good method for converting your content and curation rewards to Steem Power. The conversion takes 3days to happen in order to prevent certain kinds of attacks. It will convert your SBD to Steem on the avg value of steem on that 3 days.
You can Find Awesome Tools made for steem it on http://steemtools.com/ created by @roelandp
Why you should start now:
The short answer is that you have nothing to lose. It is 100% free to join and you can actually get paid for your work!
Unless you are a professional writer, you’re not going to find this kind of action anywhere else.
Also, Steemit is growing at an explosive pace! Hundreds of new users are registering in every single day. As it is now on early stage you can earn a huge as time pass. Don’t you know Bitcoins were basically worthless early on, but are now worth close to $4000, You have an opportunity to grab so clinch it.
Official Steem Resources:
Below are some links that will keep you updated about Steem:
This Post is Reposted on Steemit here. If you found Helpful there upvote it.
Read Here: Steemit – A Social Media That Pays, Everything You Need to Know Part 2 (Coming Soon)
Also Read: How to make most out of Steemit. ( Coming Soon)
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