RE: Fractional Reserve Banking and Steemit - Questions for Experts ...
youre not getting the overall point... the model. Steemit doesnt matter... idk if its even supposed to last. It might just be a big booster rocket until independant devs start to make their own interfaces.
All steemit is is a way to look at the steem blockchain.
thats the whole reason they had to create an complicated economic system instead of just issuing a crypto currency like everyone else.
Start here https://steemit.com/economics/@chiefjay/where-does-the-money-come-from-part-2-of-my-steem-economic-model (thats my post, i just was logged in as another account from a different browser)
There needs to be a vault to do what theyre doing, and the vault needs to work on a FR system... hilariously, for exactly the reasons complexring talks about. In fact, the money he got for that post was manufactured by the vault in exactly the same way that the money is manufactured for those corporations.
pay attention to the very end of that post... the part that got @lukestokes all moist... thats the beginning of an explanation of why the gears mesh together the way they do.
Now this is a key concept, and its fucking brilliant. It hit me in the middle of doing the below graphic.
Moe and Dan are selling their voting power to Flo and bro in exchange for a share of the mined steem. Flo and bro are buying that voting power, but not with steem, with their contributions.
Go back up and reread that... think it.
Newly mined steem is being used to incentivize the transfer of voting power from those who have it to those who make valuable contributions to the system (or have nice boobs)
Im writing part 2 and 3 tonight. But steemit... its like a newspaper... and the steem blockchain is a way, ultimately, that the readers of a newspaper can pay the writers directly, based on value, without publishers to mediate the transaction.
But not just on that one newspaper... steemit isnt newspapers in general in this model, its just a newspaper. And anyone can start one.
THough there are some (hopefully non fatal) flaws in the idea, Its incredibly, incredibly elegant. Modeling systems like this is something i excel at. It took me a night to brute force blackjack basic strategy when i was 11, and this took me a couple weeks to even figure out what was going on.
Precisely, Steemit is but one interface to the Steem blockchain.
Why, other than ideological reasons, would someone set up another instance of Steemit.com? Or any other interface with the Steem blockchain?
because it wouldnt be another instance of steemit.com... thats the thing... you can pick and choose the content you want off the blockchain. I can have nerdywhitedudeswithgraduatedegreesarguingabouteconomics.com and just have posts from from me and complex.
also... i dont think you have to pay with steem, or accoding to the votes you see here on steemit... it might have something to do with bitshares... i think you can use that to somehow integrate your own payment and voting system... or at least it might be theoretically usable that way...
Think about it this way... get rid of steem. get rid of steemit. get rid of SP, get rid of everything that you see in your account. Its neat and everything, but people look at it and they get distracted... like looking at a really cool car and thinking how neat it is but not realizing that the IC engine that powers it is a wonder of human achievement.
THere is still an underlying framework... a way you can take the consumer of content, the reader, and allow him to pay the creator of the content directly, and also to control to what extent that content is promoted.
Ok, but this time you are missing my point. I get that it doesn't have to be an exact copy, it can be anything. But who pays for hosting? It's a simple question :)
Yes, I get that. That doesn't mean its hosting is free though, right?
The site operator would pay for hosting ...
This.
or just advertising. Or charging a fee for access.
Basically, the site operator would monetize the same way site operators always monetize.
Also, FTR, hosting doesnt really cost that much. Obv i havent tested it under load yet, but I have it running on a $200 a month vultr host and it seems to work OK. Im sure if it was getting the kind of traffic steemit gets, id need something bigger. but still hosting is pretty cheap now. Especially when you consider you can run miners on your host too.
Its fucked lately (keeps crapping out) but part of running the steemd proccess that allows the site to work is (optionally i think) running miners.
I can tell you with 100% certainty who the first person is going to be that makes a(nother) fortune making his own interface. @abit making one for the chinese.
Also, a little bird told me to look for an onion site sometime in the near future.
Writing his own posts and marketing his material and also curating other people's content, or only show-casing what he / she has voted on through this portal.
@r4fken am I missing something in the article, or did you mistake a decimal point for a comma. That looks like $8200 to me, not millions.
Also, not 100% sure how it would effect server requirements, but having almost all your data on the chain (vs having to host it) has to count for something.
Right.... And where does the site operator get that money? Advertising?
@sigmajin Read the complete article, sweetie :) It's really millions.
I'm no IT-er, so can't comment on efficiencies using blockchain, but I can imagine it's still millions when dealing with that many users.
In this thread : http://www.reddit.com/r/TheoryOfReddit/comments/2gdv9z/back_of_the_napkin_calculation_reddits_server/ a Reddit employee confirms that $6.000.000 server costs per year is correct "ballpark-wise". That's a lot of posts our webmaster has to write... Unless ofcourse we assume that the whale-effect of attracting upvotes for being a whale, remains unchanged when Steem's userbase is more like Reddit's.
@sigmajin Really, an .onion? I love it already, the more use cases, the bigger the chance of success. I do wonder how this is compatible with the strong focus on strict verification requirements of a growing group of Steemians. I don't know if you followed that discussion, but the "pro-verification, anti-anonimity" sentiment has a large following.