Steemit is a blogging and social networking website owned by Steemit Inc that uses the Steem blockchain to reward publishers and curators. [2]
Steemit, Inc. is a privately held company headquartered in Virginia. The company was founded by Ned Scott, and Dan Larimer , creator of BitShares, and EOS .
Concept
User accounts can upvote posts and comments similar to other blogging websites or social news websites like
Reddit , and the authors who get upvoted can receive a monetary reward in a cryptocurrency token named Steem and US dollar -pegged tokens called Steem Dollars. People are also rewarded for curating (discovering) popular content. Curating involves voting comments and post submissions. Vote strength and curation rewards are influenced by the amount of Steem Power held by the voter.
Monetary system
Steem is a token design that is not based on any predecessors. The Smart Media Token (SMT) protocol (developed by Steemit inc.) builds on the base Steem token and allows anyone to create an entirely new token, backed by Steem. SMTs allow any website to financially reward content and comments created by the site's users and allow the definition of unique rules for the new SMT token that are independent of those affecting the original Steem tokens. User actions such as upvoting facilitate Steem's Proof-of-Brain algorithm, which also factors in the Steem Power a user holds, to provide incentives for content creators and the community by transferring small amounts of the Steem token currency.
On July 4, 2016, Steemit, Inc. launched Steemit, a social media platform with virtual currency rewards that runs over the Steem blockchain. On July 14, 2016, Steemit announced on their website that they were hacked. The attack, according to them, has compromised about 260 accounts. About US$85,000 worth of Steem Dollars and Steem are reported to have been taken by the attackers.
Unlike most digital currencies which are difficult to access for the majority of the world without any money to invest, Steem removes the friction for the average person to join in the cryptocurrency world by allowing earnings via posting without needing to buy in first. [3]
References
