Steem is blockchain platform launched in 2016 that uniquely integrates social media networking with cryptocurrency rewards, distinguishing itself through a decentralized content creation and curation model. Unlike traditional social media platforms where only the platform owners profit from user-generated content, Steem rewards its users with cryptocurrency for their contributions, fostering a community where content creators, curators, and commenters are all financially incentivized.
The core technology behind Steem powers several social applications, the most notable being Steemit, a social blogging platform often compared to Reddit but with a significant difference: it rewards users for their content and engagement through cryptocurrency. Steemit allows for a decentralized operation, ensuring no censorship, no central authority, downtime, data vulnerability, or data abuse—addressing many issues prevalent in centralized social platforms.
Steem's ecosystem is built around three primary digital assets: STEEM, Steem Power (SP), and Steem Dollars (SBD). STEEM is the fundamental cryptocurrency used to reward content creators and curators. A portion of these rewards is distributed as Steem Power, a token that reflects a user's influence within the network. Steem Power holders have more voting power, affecting which content gets more visibility and rewards. Steem Dollars (SBD) are pegged to the US dollar to offer a stable currency option for transactions within the Steem ecosystem.
The platform operates on a Delegated Proof of Stake (DPoS) consensus mechanism, which is more energy-efficient than traditional Proof of Work systems. It features high transaction speeds and no transaction fees, which are essential for the microtransactions that underpin the content rewards system.
