Dear Minnow (part 37) PROOF OF BRAIN: HOW DOES STEEMIT MAKE MONEY?
Dear Minnow,
This is one question that many newbies and skeptics almost always ask. Perhaps they don't understand how money could just be printed out of thin air. In this article I'm going to simplify it as much as possible using basic physics principles and the theory of money to show you that "PROOF OF BRAIN" does work.
ENERGY CAN NEITHER BE CREATED NOR DESTROYED; BUT CAN ONLY BE CHANGED FROM ONE FORM TO ANOTHER
This is the law that rules all forms of energy whether electric, light, heat, sound, etc. They are all indestructible. They are all inter-convertible. They all already exist so we are not really creating them. They are stored up by nature.
All living things use energy. We humans for example use energy in the form of ATP to move muscles. The muscles themselves move only because of the energy used up by the brain. The brain only works because of the energy the heart used to pump nutrients to it. The heart only works because of the nutrients derived from the food we eat. The food is the form of plants and animals. These are living things so they also respire and use energy.
When living things die they are buried (mostly). The matter decays and is reabsorbed by plants as nutrients for growth. You see how the universe runs on this simple (but complex) interchange of energy from one form to another? Water-cycles, Nitrogen-cycles, etc are all interchanging energy.
MONEY TOO OBEYS THE SAME PRINCIPLES
Do you know that money is a form of energy? Yes! It is. Money is flows just like energy. We use energy to mint money. It can be converted from one currency to another. It can be transferred across distances. Money also goes to those who already own it just like energy that attracts more energy unto itself.
The crypto-world even offers more flexibility with money. Transactions happen in record time and this raw spendable energy is transfered fquickly and easily. But how does it really work?
BITCOIN USES "PROOF OF WORK" TO MINE
Proof of work algorithm is the process through which BITCOIN MINERS produce Bitcoin by confirming old transactions. So those who confirm more transactions are rewarded for their works with a bitcoin.
The catch is that its getting more difficult to mine bitcoin because its built into the algorithm that the mineability becomes harder as more and more bitcoins are mined. Energy comes into the picture because heavy computers and machines are required to actually mine BTC.
The other day I saw an article about how Bitcoin mining now consumes more electricity than 3 developed countries. That's huge! So energy (electricity) is being converted into bitcoin (miners).
STEEM BLOCKCHAIN USES "PROOF OF BRAIN"
What you require to mine currency on this blockchain is proof of brain. In simple terms, just prove to the public that you have a functioning brain and you will get rewarded for it. You get rewarded for posting and also for accessing other people's brain power (curating).
You remember my description where I mentioned that the brain works with energy from Glucose. Now that energy burnt by the brain wasn't wasted. Nope! The PROOF OF BRAIN Algorithm means that you get that energy back as STEEM/SBD/STEEMPOWER.
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Isn't that like the coolest thing ever?
Convert brainpower to steempower. Its incredible but thats what this blockchain does everyday.
So keep writing! Keep Steeming!! The deeper your thoughts, the more energy you expend, the more currency you mint just by simply showing us all your "proof of brain".
Cheers!
I remain me, my mouth & eye @nairadaddy aka SteemDaddy. My aim is to leave you better than I find you everyday!
WANNA CONNECT?
Join Me & My Team On #AIR-CLINIC
See link here: https://discord.gg/rqded5m
That first law of thermodynamics is part of the reason a perpetual motion machine could not be created. PoB is a great concept. Keep steeming.
THanks man. Cheers!
Steem away! We dey your back.
That’s a nice way of seeing things.
When people ask me where does the money come from, I just said new tokens are created and thanks to increase in demand the price remains good. But I am not sure if this is correct so I need to do a little more research about this
ALright bro. Thanks. You can do more research on it. This is my own explanation. Cheers!
This is getting much more interesting.
Thanks bro. It is indeed...
Well i finally see things as they truly are
Funny how most people don’t still know or even believe that this system exists or even works
I’m new here and I’ll like to have further insight on how to work well with steemit to make my steempower grow
@nairadaddy you are just a few months here and I can see how well your Account has grown, ill like to know how you made it work for you
Hey @gerald.knows,
Come to the #Steemit-School on #AIR-CLINIC to find out more about how to grow here on Steemit. Cheers!
See link here: https://discord.gg/rqded5m
See yah!
this is wonderful
Converting brain power to steem power is super cool..... I'm resteeming this one
Thank you for the simple illustration. Your kind is rare.
To be honest, that doesn't prove why steem can be worth anything. Like money, all money can be created but not all money are valuable. I have one major issue with steem and prove of brain method and that is how does that translate to value. The prove of brain concept will only work if value is transferred from the creator to receiver. On steemit, it doesn't seem to be the case. For example, your post made $18.57STU(with a value of over US$100 at the time i am writing this), but it only has 48 views. No matter how many votes you have, this article only impacted maximum of 48 viewers. if that 48 viewers paid you this much, then you can say this post has this much value. Another way to justify its value is if this post helped advertisers to generate enough income from that 48 views to pay you this amount of money (or that advertiser value that much on those 48 viewers). Otherwise how would you justify the value of steem and prove of brain really works?
At least prove of work can use its cost to justify the value of verifying its transaction and that isn't really a good justification in my option.