Steemit explained by expert, how Steemit works- THE INSIDE STORY

Hello everyone,
Facebook and Twitter stock prices dropped 20% this week after earnings for, at least, this is a huge drop in value and is the largest single-day drop in Facebook's history it does seem like the
growth of these social media juggernauts, is stalling and people are looking to other platforms alternatives out there such as steemit. I thought this was a great opportunity to post my interview with the CEO of steem at Ned Scott that I filmed earlier this year at consensus enjoy. I wanted to do a one esteem video because I love steemit. I post all my content there. I have an amazing group of friends that I built up on the statement platform and I wanted to share it with my other creative friends musicians and artists and writers because I think, a whole lot of people can benefit from this platform. So, let's start off with what is steemit for your artist friends out there. Steemit is the first social media application to reward its users with cryptocurrency but this really means for you the artist out there is that you get to come and do all the things. You are already doing and creating content for Facebook or Twitter or reddit and now you get to share it to a new platform that's actually going to reward you for your contribution. The future where cryptocurrency is being paid out to us as we do great things inside social media applications.

I've had a great experience with statements. I've been able to create music videos and put them there and people actually give you money for that. That was mind boggling like the first time that I put something out there and and got steemed back well. First of all, my immediate response was, is this real, is this actual money but then I took it to exchange and traded it for Bitcoin and it was real. Can you talk more about like the reward system within statement and how it works the users are getting rewarded with the cryptocurrency called Steem. Steem is a cryptocurrency just like Bitcoin. So, it takes on a market value because people are trading it the way that it's getting distributed though is not that other people are giving it to Naomi or to the other users. There's actually a sort of socialized were Treasury where the cryptocurrency must be distributed from and what the users actually do is, they vote to where it's going to be distributed. So, if you're receiving lots of votes or likes then you will also be receiving cryptocurrency and that cryptocurrency is going to be worth something you can use it to buy goods and services or you can trade it for Bitcoin, you can trade it for dollars.

I've used a lot of platforms where it's pay-to-play right when you first go on to what you have to send money over there. So, already it's like I'm sending money to this unknown platform, so, I could distribute it. It is hard to be generous on platforms where you just have a fixed pie and what's great about Steemit is, it's actually not coming from my reserves. I'm not giving away my Steem, when I'm uploading people. That's 100 percent right, just look at your behavior in a taxicab or at a restaurant, if you don't have money to give away and money doesn't grow on trees. You know then you actually think about how much am i tipping the taxi driver, how much am i tipping the waiter. When you get online and you realize that content is so ubiquitous. It's even harder to feel like you should be pulling pennies or dollars out of your pocket and just giving them away when you can go and get content for free on places like YouTube so for tipping platforms to really work the whole model needed to be reinvented. Cryptocurrency can function like points and just let you have on reddit or some other social media platforms. You have a concept of points that you know, people are earning these things. It has reddit Karma, you're in the points where the points aren't worth anything. Steem is the same concept except the points are actually worth. Something, talk to me about this reputation system that steem utilizes reputation is information that voters can use to decide if they want to vote on your content and help you earn, however, it's not a mechanism tied directly into that rewards pool function the type of voting is actually pretty important to understand in this ecosystem.

We use stake weighted voting rather than one person one vote voting which is what you might have on reddit or Twitter so because you have steak weighted voting. You can in a fair way distribute these tokens but it also comes with the implication that the more tokens, you have, the more coins you have the more influence you have so if you can get people who are basically wealthy and steem to vote on your content you could potentially earn more. I know a lot of people have gotten very rich by putting great content out there. It's been really beneficial for artists if someone wants to take an even larger thesis on why people are earning inside this ecosystem. They should also study cryptocurrency and why cryptocurrency is becoming valuable and in general as well. You know, cryptocurrency steem included just like bitcoins a new asset class. It's a commodity that's offering new properties new valuable properties to people in ways that have never all been packaged together in one product before. You know, you have the sovereignty. You have the instantaneous transfers, you have the low or zero fees and asset like this has never existed before. So, cryptocurrency is going to continue to become more valuable over the next several years. It's worth making it bet on.

There are a lot of issues in the way the artists currently make money. There are lots of gatekeepers. We've slowly seen the democratization of the space and those barriers come down. You know, video equipments become cheaper. Hollywood has less and less pool as independent studios like Netflix come up and you know, create award-winning shows and I think that steemer is the next evolution of that how do we break down those barriers even further and allow this kind of peer-to-peer funding where we're paying for content that we actually like without actually having to have a huge amount of capital in order to support these artistic projects. So, the key for the future where there's great opportunity for the independent producer, creator, artist is as you pointed out low barriers to entry. We still need this in the blockchain and cryptocurrency space as well. We are seeing it to a great degree with steem and steemit but even this platform needs some advancements in technology. One of the things we're going to be doing is allowing anyone to launch their own tokens which they can then use for fundraising which is something that these artists also need they need monetization of their and they need a way for their community to continue to be interested so the tokens that they'll be able to launch on the Steem blockchain, will allow them all those things hopefully, will allow them to buy that camera equipment and whatever other supplies, they need to work on their creative projects. Now, I'm involved with a television show called the hard fork series and we actually raised all of our incue bation money on steem ins which was an amazing process have you seen that happen. Alot that people come in with a small idea and then it's grown into this giant multi-million dollar. You know project simply because they were enabled through this community this team a community. Steeming is kick-starting lots of projects. I do think that the project, you're talking about the the blockchain project with Doug, I think is an example of some extraordinary entrepreneurs getting together but we are seeing that in a number of places. It's really awesome to see these projects be enabled through this platform so thank you so much for everything.

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@momimalhi