Steemit Introduction
Steemit Introduction
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Concept
The idea was described in a whitepaper released in March 2016.[6]The general concept is similar to other blogging websites or social news websites like Reddit, but the text content is saved in a blockchain. Using a blockchain enables rewarding comments and posts with secure tokens of value. Images can be uploaded and hosted on Steemit. Other multimedia content must be embedded from other web hosts. For formatting, there is a WYSIWYG editor. Users can also opt to use Markdown formatting with HTML elements.User accounts can upvote posts and comments, and the authors who get upvoted can receive a monetary reward in a cryptocurrency token named STEEM and US dollar-pegged tokens called Steem Dollars. People are also rewarded for curating (discovering) popular content. Curating involves voting comments and post submissions. Vote strength and curation rewards are influenced by the amount of STEEM Power held by the voter.[4]Steemit has a reputation system, where new accounts start with a reputation of 25. An account's received votes can influence its reputation up and down, incentivizing online etiquette and interaction with the community.
Steem blockchain
Steemit runs on top of a decentralized network named Steem. Like Bitcoin, Steem is a blockchain with transferable tokens. In addition to moving tokens from one place to another, Steem is also a text content and metadata database that applications or websites can connect to. Through these apps, Steem users can transact and interact with the Steem database. Instead of using cryptographic hashes as addresses like many blockchains do, user-chosen alphanumeric account names are used. With human readable account names, transactions can be made directly from an identity to an identity, making them easier to understand than hexadecimal hashes.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.While steemit.com (owned by Steemit, Inc.) is the first and reference front-end website interface for the blockchain content of Steem, the network's open and permissionless nature allows third-party websites and apps to connect and interact with the Steem database and blockchain. A frontend website portal is known as a faucet. Several faucets have been created by third parties. These offer alternative interface designs or features such as Instagram-style image posting. Busy.org is a Steem faucet and website with an alternative user interface. eSteem is a Steem faucet app for Android and iOS. A forum-style beta app called chainBB is also available.Non-Steemit apps and websites use the same Steem user credentials as used on Steemit. This is possible because the user account and password are part of the network database, using public-key cryptography. Only the user who owns an account can authenticate actions such as commenting, voting, or transferring with their password or appropriate key. Each account has a set of private keys with different access privileges. The lowest security level key allows posting, commenting and voting, but not transfers of currency. Therefore, with a hierarchy of keys, it is possible to use other Steem faucets without risking a loss of funds or account control.
Monetary system
The Steem blockchain has two tokens: STEEM and Steem Dollars. There is also a vested or stored interest known as Steem Power. Steem Power is strictly for internal use in the Steem community, while the tokens are used for stored value and trading.Steem began with a highly inflationary supply model, doubling roughly every year.However due to community demand, on December 6th, 2016 the inflation rate of Steem was changed to 9.5% per year, reducing by 0.5% per year.