A minute's guide to Bitcoin and Steemit!

makafuigdzivenu (52)in #bitcoin • 7 years ago (edited)

For crypto currency newbies out there who are not familiar with Bitcoin and Steemit, here is a simple guide to Bitcoin for you.

What is Bitcoin?

Bitcoin is a peer to peer crypto currency and the world’s first decentralized digital currency. Bitcoins are digital tokens which are moved from the digital wallet of one user to another during a transactions.

The Bitcoin network is powered by a network of voluntary computers running the Bitcoin client which keep an open database of all transactions on the network. All computer on the network take part in verifying every new transaction and only verified transactions are appended into blocks in the distributed database.

Whenever miners(computer clients) generate a new block which happens usually every 10 minutes, the network releases new coins(currently 12.5 new Bitcoin) to reward the miners for keeping the network running and safe.

How is Bitcoin different from Steemit?

Bitcoin and Steemit are entirely different applications built using Blockchain technology. Bitcoin is strictly a financial system while Steemit is a social platform where social media applications could be built. The Steemit.com open blog is a one example of the applications built on the Steemit Blockchain.

When it come to token distribution too, Bitcoin and Steemit protocols differ. Steem tokens generated by Steemit miners are shared between content creators on the Steemit network and the miners. Content creators are the users of applications on the Steemit network, including Steemit.com bloggers and commentators.

Steemit users/content creators receive a bigger percentage of all mined Steemit tokens than the miners.