In this decade, digital currency has gained a lot of tractions from the investors and traders. Most of this attention was after the tremendous growth in the value of a cryptocurrency called Bitcoin. After Bitcoin, many more Cryptocurrencies were created using the same building blocks as that of Bitcoin. One of the emerging and controversial Cryptocurrencies is Steem which has a unique concept than other digital assets. The thing that makes the platform different from other digital currencies is that, the company has focused in combining social media with cryptocurrency. Along with many websites out there, Steemit.com is the main website which uses the advanced Steem technology.
What is Steem?
Steem is an altcoin which can be traded with Bitcoin and other Cryptocurrencies or even with fiat currencies in open market. It was built using a Blockchain technology called Graphene which was able to process more than ten thousand transactions per second. The token is handled by various servers that are controlled by people known as witnesses, keeping the company alive. Along with this token, several other tokens such as Steem Dollars (SBD), Steem Power (vests) were also created. Out of these tokens, Steem and SBD are liquid so it can be transferred to the users while Vest cannot. Also, the Steem Power can be created by powering up Steem. This basically implies that the token owned will be locked by means of a contract which is of minimum 13 weeks. So, the owner cannot sell the tokens before 13 weeks ensuring long-term commitment of users to the platform. The Vest is used as a measuring tool of one’s influence over the platform. Besides the use of Vest as a measuring tool, it can also be used as a way to earn interest as 15% of newly minted tokens in a year which are distributed among the holders.
All about Steemit
Steemit Inc. is a private company based in New York and which is headquartered in Virginia. The company officially launched the Steemit platform on 4th July 2016. The website is basically a social media platform based on Steem technology where anyone can earn rewards by doing various kinds of work that benefits the community just like Reddit. The basic idea behind the creation of this platform is to empower the people throughout the globe by recognizing and rewarding their contribution to the community. On the basis of the impact of their contribution, people are rewarded with cryptocurrency. On this platform, people are paid in form of SBDs and Vests for posting and curating posts. The ratio of SBDs and Vests in which the users are being paid with a mapping of 50-50. Furthermore, there is an option where one can be paid completely in the form of Vests on Steemit. This company creates Steem on daily basis and distributes it among its users as a form of reward for posting and curating the posts on its website. The company has now gained great popularity as it allows anyone to post or vote and earn on its platform.
In 2016, Steemit was found by Ned Scott and Dan Larimer. The concept was introduced to the world by means of whitepaper in March 2016. A reputation system was also created by the system in order to recognize and incentivize good behavior of the users. The goal of making the revolutionary concept was to make it run on the decentralized Steem technology with the aim of smooth and frictionless movement of the tokens between the platform and its users. According to the company, 15 percent of the total tokens created per day were distributed among vest holders while 75% of the tokens were distributed as rewards and remaining 10% were given to the witnesses to run the Blockchain.
Uniqueness of Steemit
Social networking platforms like Reddit, Facebook, Twitter, etc. have earned billions from the contents posted on their platform by the registered users. The people or organizations or business groups posting their contents on these social media platforms think that their content will get recognition and they will get compensated in the form of more audiences and customers, but, instead, these platforms make a fortune out of these posts. But Steemit, unlike others has the thinking that its users should benefit more from the contents that they post or curate. So the company platform distributes the majority of its earnings among the users that create or upvote posts. Also, there are fewer ad blockers on the platform which helps in generating more ad revenue. Now as the expense of micropayments is eliminated, donation and tipping someone has become feasible.
Steem Market value and statistics
The current market cap of the company is just above $42 Million USD which is very less as compared to Steem’s highest market cap of $180 Million USD that it had reached on 3rd January 2018.The highest exchange rate of the token in the open market was also achieved at the same day and that accounted for 7.31 USD which is now dropped to 1.66 USD. There is a total supply of 27.1 Million out of which 25.4 are in circulation currently. Out of 1358 Cryptocurrencies that exists, Steem is ranked 30 in the list of most influential. By the end of 2017, there were more than 450,000 accounts on this platform out of which approximately 26,000 were active users. The company claims that it has paid more than $30 Million to more than 50 thousand users since the October of 2017. There is approximately 10% downward pressure every year in the value of the token.
Where to store Steem coin?
Steem Wallet is an application which allows you to manage your tokens in form of SBDs, Vests or the coin itself. There are various Wallets where one can store their tokens and they are further categorized as online wallets and application wallets.
Steemit: This social networking site has its own integrated wallet which can be used by anyone after signing up on the website.
CLI: CLI is the official wallet of the token and has a text-based interface. The requirement of using this wallet is to have a connection with RPC servers such as steemd.
This is a mobile application that works on the technology same as that of the platform and has its own wallet for storing and managing one’s tokens and also giving you all the facilities of social networking.
Piston is basically a Python library which interacts with the token handler’s network.
Vessel is same as eSteem, just that former is a desktop application whereas the latter is a mobile application.
What is Steem Mining?
It is important to clarify first that the term Steem Mining means to actually earn Vests and not the cryptocurrency tokens which will help you increase your influence and earnings while interacting on Steemit rather than earning you tokens that can be later converted into cash. The mining is different from the mining of other virtual tokens as the new blocks are programmed after every 3 seconds. The whole process of mining is known as ‘Delegated Proof of Stake’ where new blocks are created in witness accounts and are then measured by the community upvotes. Mining of this token is actually an easy task because the thing required for this purpose is just your computer’s processor.
What is the Mining process?
First of all, you will need to install the miner software on your computer and setup the software. The Vest mining totally depends on the mining hash rate that your processor gives you. The mining hash rate or hashers per second on your mining window indicates the time in minutes which would possibly be taken to find a block with that hash rate. Along with the hash rate, another factor that influences the rate of mining in a given period of time is luck. If you are lucky enough you can get a number of vests as compared to other times in the same amount of mining period. The number of miners who are looking to mine Vests also affects your mining rate. More the number of miners less will be the chance that you will find a block. Roughly, a high-end CPU such as Intel Core i7 processor with 4 cores will give you a maximum rate of 30 to 40 thousand hashes per second which can get you a total of 1 to 3 Vests per day. However, this hash rate can be achieved only when you use the maximum number of threads that is equal to the total number of cores used for mining. With the slower hash rates like 10 to 20 thousand hashes per second, it is even possible that you can earn 0 to 1 blocks per day. Vests can also be mined using GPU mining indirectly. First, the Ethereum is mined using the GPU mining and then the Ethereum is converted to Steem coin which is later automatically powered to Vests.
Where to buy Steem?
Steem exchanges are a type of online cryptocurrency exchanges where this altcoin is traded. Online Cryptocurrency Exchanges is a website where Cryptocurrencies can be bought, sold or traded off with some other kind of Cryptocurrencies or even with fiat money. Some of the Online Cryptocurrency Exchanges that exchange this token are given below.
Binance: Binance is a Chinese cryptocurrency exchange and is considered as the fastest growing exchange where Cryptocurrencies can be traded.
Cryptopia: It is one of the largest platforms that offer crypto to crypto exchanges with Bitcoin, Ethereum, and other coins.
HitBTC: HitBTC has multiple lists of Cryptocurrencies which allow buying and selling your desired coins within minutes.
Steem Vs Bitcoin
Steem had seen tremendous growth in the price since its inception which accounted of $3.63 while the other crypto giant (Bitcoin) had just raised by a price of $0.008 in the same duration of time. Its mining is quite easy and efficient and can also be mined by writing while Bitcoin mining is done by hardware and requires high-end GPUs. Bitcoin transfers lag behind in some aspect while the transfer of this altcoin is transparent as well as faster. There is also a great difference in the transfer fees of both the Cryptocurrencies as Bitcoin transfer fees is increasing day by day but with the help of its ecosystem, Steem transfer fee is much cheaper. In Bitcoin, the delegation of Power is nontransferable but in this altcoin, you can give someone your power with full assurance of getting it back. In addition to all this points, Steem is more of an ecosystem that monetizes the working on social media platform by rewarding tokens.
Is Steem a scam?
In the first 12 hours of its launch, due to the relative complexity of mining, the developers of the platform were able to mine a greater portion of tokens. The fairness of this situation is always a topic of debate as the platform first released a scam stating that it was free mining and anyone could mine the tokens and provided inaccurate and insufficient information about the mining of these tokens. Also, there were no complied wallets where one could store their mined tokens. This scam was caught as the miners were crashed after 12 hours of mining exposing all the truth. Also, the developers of the platform had put some command which would lead to zero block mining at the time their miners had crashed ensuring that no one else could mine. These all information can be obtained by checking the platforms original thread which has the record that no one could mine the blocks when their miners were down. Even if the miners crashed again and if someone was able to mine a huge amount of blocks in their absence, the developers would re-launch to ensure stability in one’s vests and centralization of the tokens. This hidden mining by the developers helped them to raise a lot of tokens which are now being used by the platform to attract new users. So, it can be said that the token is a kind of a scam coin in a way.
There is no doubt in the fact that the platform was a great idea of creating such a social networking system that rewarded working people for their content. This platform is basically a combination of Reddit and Quora which is backed up by great financial rewards to content creators and curators. Outside this platform, the world of content writing is deteriorating as the content writers are not getting paid good enough. It is a Blockchain technology with a view to revolutionizing the already buzzing social media. The early day scam has caused Steem to be considered as one of the most controversial Cryptocurrencies present today and also increased number of haters and detractors. This may lead to new users losing their hopes on the platform resulting in the downfall of its value.