Steem (STEEM) – cryptocurrency review
The idea of creating a social network based on blockchain technology that could become a competitor to Facebook or Reddit looks somewhat fantastic, however, the Steem project trying to implement it managed to attract more than a billion dollars and become one of the largest startups in history.
The story of Steem began in 2016, when Denis Scott and No Larimer conducted a survey on one of the cryptocurrency forums about the need to create a social network based on the blockchain. A team was soon assembled, and Scott and Larimer became the founders of one of the most successful and ambitious blockchain projects – Steem. The new generation social network allows you to store all user posts in a distributed register, which excludes the possibility of editing or deleting them. In addition, the creators of Steem are fundamentally against censorship, which has been actively used recently on Facebook, which positively distinguishes social networks from existing ones.
The platform is currently in beta testing and has about 50,000 users. In other matters, if developers can solve some problems:
- Improve network security (a hack is known that allowed attackers to steal $ 100,000);
- To expand a set of tools for earning;
- To increase popularity among the English-speaking audience.
Then the capitalization and exchange rate of the Steem cryptocurrency, the main asset of the network, can increase several times.
Blockchain social network with the possibility of earning
Another feature of Steem is that users can receive an award for quality and interesting published materials. The profit of the author depends on the number of views of the post or comment and is paid according to two schemes:
- The full amount of the reward is paid in Steem Power – internal platform tokens that allow participants to perform certain actions;
- Half of the amount is paid in Steem Power, and the second half in Steem coin – liquid cryptocurrency, which can then be sold or exchanged at many popular sites.
Is the high-quality post sufficient and whether it is worth adding it to the blockchain by the audience of the platform, by voting, this allowed the developers to remove the intrusive ads and bots, whose records are simply not rewarded. However, even now there is a relatively poor quality of Steem materials.
Mining and storage
For cryptocurrency mining, the PoW algorithm is used, but the process of its mining is significantly different from mining other currencies – only 21 network participants can mine each block here. Of these, 19 are selected by voting, 1 is determined randomly and 1 system selects from the owners of the largest computing power.
A block is formed every 2 seconds, while miners receive 90% of the reward, and the remaining 10% go to post authors. You can store Steem currency on an official cryptocurrency wallet. To access it, just create an account on the Steemit website and find the corresponding tab. A mobile wallet called eSteem is also available, which allows you to manage tokens using a smartphone.
The social network policy is based on working with verified, real participants, so at this stage of existence, only owners of Facebook, Reddit (with a positive reputation) and Gmail accounts can log in to the platform. After authorization, the user receives 7 network tokens on the account to start work.
Buying and Steem Course
Since the Steem cryptocurrency is one of the most funded on the market, it was added to the listing by many large exchanges, including:
- Huobi – allows you to buy Steem for USDT, BTC or ETH;
- Binance – here tokens are traded in pairs with BTC or ETH;
- Bittrex – offers Steem users only for BTC.
Almost immediately after Steem entered the market in July 2017, the rate rose to $ 3.5, followed by a collapse and a gradual restoration of positions. The peak value of the coin was observed at the beginning of 2018: some sites traded Steem for $ 7.1, and the total capitalization grew to $ 1.3 billion. After that, following the general market trend, the token quickly rushed down and for a long time could not overcome the 1 dollar barrier. At the time of writing, Steem’s average exchange rate is $ 1.7 and is moving quite unpredictably.
Prospects for the development of cryptocurrency
Despite the availability of the finished product, many experts note a decline in interest in Steem from both investors and users. In 2018, while maintaining the current trend, the value of the token will continue to decline and may return to less than $ 1. However, if the creators manage to solve the problems with the site’s security and take measures to popularize it, the project may get a second wind. Users also are not satisfied with the complex network interface and some problems with the formation of an algorithm for charging tokens for views and “likes”, which requires clarification from the developers.