The STEEM blockchain runs on a proof of work system like Bitcoin. In proof of work systems, miners must try different hashes until they find the correct one to complete the block. Unlike Bitcoin through, the resources needed to mine STEEM is low enough that anyone with a decent computer can do it at home. However, this system is still very hard to hack into as the resources it would take is nearly infinite. Mining pays out 1% of the market cap of STEEM every year. Any STEEM earned through mining is payed out in 104 equal payments over 2 years (once a week).
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