Steemit is a promising revolutionary platform that has been created in 2016 and changed the traditional blogging. It is sustainable because it incentives the production of content by paying the content creators in cryptocurrency. Here a closer look will be taken on Steemit focusing on what it is, its key features, advantages, and possible disadvantages. Welcome to the wonderful world of blogging, non other than blogging that is driven by blockchain technology!
What is Steemit?
Steem, the technological application upon which Steemit is based, allows users to actively engage in a social media network with the purpose of simultaneously monetizing the production of content, as well as encouraging the curation of reliable material. Limited to revenue, revenue in traditional platforms is mostly channeled towards the platform while in Steemit the rewards are well distributed. Customers gain tokens called Steem Dollars (SBD) for posting quality content (posts and comments) and upvoting received and interesting content.
Here’s a breakdown of the key components:
- Steem: The cryptocurrency that was to act as the native currency of the Steemit platform. Steem can be held, traded, or staked to gain control over the platform by users such that users utilize the platform.
- Steem Dollars (SBD): An actual USD anchored currency for Steemit and the easiest way to monetize contents within the platform of Steemit. For the creation and moderation of the content, users are paid using SBD.
- Steem Power (SP): Steem that is locked to be used for voting on the platform among other functions of the social media. The higher your SP is, the bigger effect your upvotes have on post promotion and determining who will actually receive some STEEM Dollars.
How Does Steemit Work?
Steemit uses a proof-of-stake consensus algorithm In a cryptocurrency. While PoW, as implemented in BTC, is aimed at solving complicated mathematical problems, PoS distributes the block reward ratio based on the user’s stake in the form of Steem Power. Such a system fosters the players’ commitment to the server and is unattractive to those who intend to cheat.
Here’s a simplified breakdown of the process
- Content Creation: Users post messages and/or replies on issues of their interest.
- Voting: It is the users who vote those contents that are of value to them. The upvotes are then calculated in reference to the real value or Steem Power.
- Reward Distribution: Every amount in Steem/SBD is generated from a part of the daily supply that is distributed among authors and curators with regards to the posts that have been upvoted.
- Curation Rewards: People who upvote content can get a good amount of the coins if the post receives a lot of traffic in the future.
Benefits of Using Steemit
Steemit offers several advantages for content creators and users alike:
- Content Ownership: For instance, while using such platforms as steemit, content that is posted belongs to the users. The record-keeping feature of the blockchain helps the ownership be safe and also resistant to modification.
- Monetization: It means that content creators can be paid in cryptocurrency for their work; thus, the business model builds a more sustainable and reliable revenue stream than platforms focused on advertising revenue.
- Community-Driven Curation: Upvoting enables the sharing in equals of good information hence encouraging discovery of quality information.
- Transparency: Steem Blockchain has the feature of transparency in rewarding its users and revealing the running of the platform to users.
- Reduced Censorship: Since, Steemit is a decentralized social media platform it is better equipped to deal with censorship than the centralised social media platform.
Potential Drawbacks of Steemit
While Steemit offers numerous benefits, it’s important to consider potential drawbacks:While Steemit offers numerous benefits, it’s important to consider potential drawbacks:
- Learning Curve: It is also vital to note that Decentralized STEEM witnesses voting strategies, and the system in general, can be complex to understand for the new users.
- Competition: They get maximum variations from the normal users and fairly good remunerations; competition for the new users is often stiff.
- Price Volatility: Cryptocurrency like Steem and SBD which powers the platform is volatile and as such the value received maybe significantly low despite the user seeming to earn a good amount.
- Limited User Base: Nevertheless, it should be noted that Steemit is smaller than conventional social media applications, which could further reduce exposure.
- Technical Challenges: There is also the problem of Steemit’s interface and the impact of various features to be not always friendly compared to the market leaders.
FAQ’s
1. How do I get started on Steemit?
Visit https://steemit.com/ and register for the free account. Get acquainted with the environment of the platform, get to know with the layout and design, and check the existing communities. Hence, begin by participating in the various forums and then think of producing material that you post.
2. How much Steemit user can earn such amount?
It’s also important to note that the earnings largely depend on aspects such as the quality of content produced, user interactions and activities on platform, and own Steem Power. New users maybe may not get highly observable benefits from using the site. Thus, it can be noted that long-term success is built based on the consistency of the strategy and the audience’s accumulation.
3. Where to buy/sell Steem and SBD?
There are numerous crypto exchange markets for buying and selling of Steem and SBD. Investigate the exchanges with good liquidity before you get to trade your cryptocurrency.
4. Is Steemit scam or is it safe to use?
Like any internet based community there is risk involved and Steemit is no exception. Ensure that your account is protected with a good password and you are not inclined to click a link or share information that seems fishy..
Conclusion
Steemit is a ground-breaking platform for generating content and General user engagement in social networks. By adapting blockchain, it makes users own their content and post content that is relevant and get rewarded for the same, and also be part of a curation process. Nevertheless, these obstacles for most users include a learning curve, competition, and fluctuations in prices, which are still minor when compared to the unbounded possibilities that stem from Steemit’s values.
This report presents several challenges relating to Steemit and whether or not it will be able to become more mainstream is tied to its success in meeting these challenges and introducing new users to the platform while also enhancing the user experience. Nonetheless, it will remain a first-of-its-kind experiment to demonstrate how blockchain solutions may revolutionize various industries and propose a change to how content creators and publishers monetize their offerings online.