Steem bills itself as ‘a social blockchain that grows communities and makes revenue streams possible for users by rewarding them for sharing content’. It also powers real applications via social apps like Steemit.
Steem started out as the cryptocurrency on the Steemit platform that rewards users for community building through the upvoting and the posting of meaningful content. Founded in 2016 by Ned Scott and BitShares creator Dan Larimer, the Steemit platform, built atop the Steem blockchain, is a social media network that seeks to be a source of community-driven curated content such as news, Q&A and job boards. The more value a particular piece of content is able to deliver across a greater number of people, the greater the reward received by the creator. Steemit users can cast votes to create a hierarchy of content. The higher the upvote count received on a content piece, the more Steem is earned by its publisher. Steemit’s meritocratic system also enables users that hold more currency to cast more meaningful, greater influence votes.
What is Steem
Steem is the name of the token that can be bought and sold on the open market, based on the blockchain-based platform Steemit.
Steemit is a platform that allows publishers to monetize their content that functions similarly to many other social content networks.
Think Reddit, but in a way that pays writers and content curators.
Steemit rewards writers when their content gets upvoted, and it also rewards people who help curate the best content by upvoting other people’s content.
Steem, one of the three currencies the Steem platform offers, is an integral part of this system.
How Does Steem work?
In order to really focus on Steem, we have to go over a bit about the Steemit platform.
Every day, the Steemit network creates new Steem units and distributes them to its users. The users can then exchange these units on the open market for Bitcoin, other cryptocurrencies, or fiat.
Steemit has really gathered some “steam” (excuse the bad pun) in the content and cryptocurrency community because it virtually allows anyone to write about interesting topics and start earning money.
Steemit is different from other cryptocurrencies like Bitcoin because it doesn’t solely rely on mining to generate new currency units. While you can technically mine Steem, the network creates new Steemit currency units and automatically distributes them to people who are writing on and engaging with the platform. The amount you get is correlated with the number of upvotes the content you write gets and the amount you engage with the site (upvoting and commenting).
How do I buy cryptocurrency?
While some cryptocurrencies, including bitcoin, are available for purchase with U.S. dollars, others require that you pay with bitcoin or another cryptocurrency.
To buy cryptocurrencies, you’ll need a “wallet,” an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as bitcoin or ethereum.
Coinbase is one popular cryptocurrency trading exchange where you can create both a wallet and buy and sell bitcoin and other cryptocurrencies.