The social media space has become a dynamic one these days. The social media platforms have now intertwined themselves into our everyday lives. The likes of Reddit, Twitter, Facebook and Instagram are gaining popularity with each passing day. News and content are shared quickly on these platforms than any other news channels in the world. The platforms are also attractive to people who would like to engage with their peers from all over the world. Consequently, Steemit is revolutionizing the world of social media and networking by using its STEEM blockchain in addition to its reward units Steem Dollar (SBD). The users on this platform are rewarded for their contribution. Contributions can be in form of content, liking as well as commenting and discussions on various topics.
Understanding the STEEM Token Networking Platform
Many users find it difficult to grasp the concept of the Steemit networking platform along with its blockchain and reward system. It is essential that we clear this widespread confusion.
Steemit: This is the platform itself, in other words, it allows the users to create as well as curate the content, and you can look at as Reddit. The platform was launched in 2016; however, it has witnessed a tremendous growth in the user base. The users are rewarded for the content they post on this platform in either Steem Dollars (SBD) or Steem Power (SP).
- Steem Token (STEEM): STEEM, on the other hand, is the blockchain that powers the platform. It is, in fact, the basic unit that determines the value of all the other units on Steemit. As mentioned above the other units consist of Steem Dollar and Steem Power. STEEM is not really a currency, although it is more or less the gateway in between Steemit (the platform), and the platform currency (Steem Dollar) and even the general currency (Steem Power). Steem utilizes Smart Media Tokens, which are native digital assets on the Steem blockchain. They are much like Ethereum’s ERC20 tokens, but incorporate particular built-in ‘Proof-of-Brain’ properties together with a token distribution reward system that is developed for the digital content businesses. The Steem (STEEM) token is tradable and can be converted to either Bitcoin or Ethereum.
- Steem Dollars (SBD)
Users are rewarded for their contributions on the Steemit platform in this cryptocurrency unit referred to as Steem Dollar (SBD). It is connected to the dollar and essentially represents the Steem equivalent of one US dollar. It is vital to note that SBDs are not fixed; rather, they fluctuate depending on the current conditions in the market. They usually earn a 10% interest per year. SBD can be converted to STEEM, exchanged to STEEM on the internal market, in addition to being exchanged on various exchanges such as Bittrex or OpenLedger DEX.
- Steem Power (SP)
This currency is not tradable on external exchanges; however, it can be referred to as the internal “currency’ on the Steemit network. Investing in Steem Power (SP) can be viewed as acquiring a stake in STEEM. It offers various advantages to users of Steemit, for instance, they get a direct stake in the Steem reward pool, besides, their voting power rises which can mean that the user can vote to increase the author rewards including oneself.
In conclusion, STEEM is the determinant of the value of rewards in the Steemit ecosystem. Besides, it is also the proof-of-stake for the users who hold Steem Power (SP). The Steem Dollar (SBD), on the other hand, provided stability of the other currencies on the platform.