What is Steemit & Why we use it?

We recently launched our blog on Steemit; now before I go into further details about our blog on Steemit I will explain what the platform does and how it works.

Steemit is a social network platform similar to Reddit but it also allows you to post videos, articles and comments. What sets it out apart from other social network platforms is that it is powered by blockchain technology. This allows Steemit to pay both those who create content for the platform when their content is upvoted as well as those who upvote content.

The Steemit network runs by creating blocks of cryptocurrency which it distributes to its users. Steemit actually has 3 different cryptocurrencies: STEEM POWER, STEEM and STEEM DOLLAR. Each of these cryptocurrencies works differently and serves a separate purpose on the network.

STEEM: can be bought, sold and traded like other cryptocurrencies on the open market (e.g. Bitcoin, Ethereum, Ripple etc).

STEEM POWER: Half of the rewards users receive from the network are in the form of STEEM POWER. These cannot be sold for 2 years and they remain locked in a “savings account wallet” on each users account. The more STEEM POWER a user has the more STEEM POWER they will earn as 90% of STEEM POWER created per day is distributed to users on the network that have STEEM POWER. 10% is distributed to content creators, curators and commentators. A Steemit user earning money for their content gets paid 50% in STEEM POWER and 50% in STEEM DOLLARS. Users are paid based on how many upvotes their content receives as well as for upvoting other user’s posts. The more STEEM POWER a user has, the more his voting power counts. Therefore, receiving an upvote from a user with a significant amount of STEEM POWER will earn you more STEEM POWER and STEEM DOLLARS compared to an upvote from a user with little STEEM POWER.

STEEM DOLLARS: 50% of rewards are received in STEEM DOLLARS. STEEM DOLLARS are stable, they cannot be diluted or lose value but may appreciate in value. Users can sell STEEM DOLLARS immediately by exchanging them into STEEM, which can then be traded on the open market. If a user chooses to hold STEEM DOLLARS then they earn a 10% interest rate.

So how do you create an account on Steemit?

In order to register as a Steemit user and have access to the Steemit blockchain, the account has to pay its way into the network by purchasing STEEM. However, Steemit realised that such barriers to entry would deter potential clients and as such, the company behind Steemit pays the fees for creating the user’s accounts. But the downside is that the sign-up process takes up to 7 days to complete-this is how long it took us.

So why did we join Steemit? Basically, we believe that blockchain technology is the future and thus, we aim to increase awareness about it. If we can post and share our content on a platform that directly promotes what we are working towards, then that’s great! Our aim is to use Steemit for the next couple of months, review it, and in doing so, outline the pros and cons of the platform for potential users. If you want to find us on Steemit check out: https://steemit.com/@crypto101blog

Cryptolad over and out!

Disclaimer: This article expresses our personal opinions, predictions, and market speculations based on the way we interpret the information we have available to us. It is by no means to be considered expert advice. We take no responsibility/ liability for any actions taken by you based on anything we have mentioned.

We are in no way affiliated with any companies, sites, crypto-currency exchanges and crypto-currencies that we mention in these articles, these are simply the ones we choose to use due to our personal preference.