Steem also reaches decentralized consensus differently than Bitcoin. It uses a method called delegated proof of stake where block-creating accounts, called witnesses, are elected by Steem users. Instead of relying on proof of work to find blocks, the Steem network actively schedules blockchain transactions to be processed in blocks every 3 seconds. Block producers are given a small part of the rewards created in each block; the rest is paid to authors and curators.

Unlike Bitcoin, Steem has no transaction fees for rate-limiting or to pay its block producers. Instead, accounts use bandwidth, which replenishes fast enough that a typical user is not affected or limited.