Overview of the STEEM Blockchain and its working?

We have learned about many of the DeFi platforms based on trading in cryptocurrencies. We have also learned about the role of these DeFi platforms in Automated Markets. But, have you ever come across any such platform that serves you both as a DeFi as well as social media? Also, does your social media app or DApp provide any reward for the creativity and imagination behind your post?

Well, if you haven’t, you would be pleased to know there exists such a platform(s) and STEEM is one of them.

What is STEEM?

Like any other DeFi platform STEEM also works on blockchain technology, but what makes the STEEM even more desirable is its ability to work across the domain of social media platforms through blockchains. It enables the functioning of the DApps that reward its users for their creativity and talent shared via posts. This is why it is also called the blockchain-based social media model. It rewards the contributor in the form of cryptocurrency.

What is STEEM-Blockchain?

A Steem-blockchain is a publicly accessible as well as publicly distributed database that stores the quantification of all records, transactions, rewards, etc. in the form of text. But, to reward the creator of the data or content, an interface is required between STEEM and the creator. This interface is generated by the DApps created on the STEEM platform. Such as ‘Steemit’ which rewards the user by issuing steem tokens to them.

The Steem used DPOS-mechanism i.e. Delegated Proof of Stake. This mechanism uses “witnesses” instead of “miners”. These witnesses are elected by all those who have an account on steem. They elect 21 witnesses who are responsible for producing blocks and governing them. These witnesses get the “Steem Power” for producing each block.

The STEEM Rewards

The STEEM rewards its users and account-holders in the following ways:

• STEEM Token — Like every other DeFi platform Steem issues its crypto-tokens known as steem tokens. These are generally liquid tokens for short-term traders. The social-content curators are also rewarded with the steem tokens.
• STEEM Backed Dollars — The Steem-Backed-Tokens or SBDs can be exchanged for roughly 1 USD worth a Steem token. These SBDs work as a shield against volatility.
• STEEM Power — It is the Steem Token locked or vested for a particular period after which it gets converted into the Steem-Power. Steem Power or SP enables you to upvote any content and by doing so your SP gets depleted and regenerated afterward.

Benefits of STEEM

• It helps in enhancing and encouraging creativity by rewarding them, hence providing the quality of content.
• Enables instant transactions with scanty fees.
• Encourages businessmen and freelancers or entrepreneurs by engaging them to curate innovative content and incentivizing them in return.
• Provides stability to your currency by providing the option of converting it to USD or SBDs.
• Provides quality content and even quality answers to personalized questions.

Final Thoughts

STEEM of all the DeFi platforms holds a special place by providing marvelous revolutionary features. It not only incentivizes the user but at the same time, also encourages the creation and appreciation of quality content. No Doubt is one of a kind and rare platform which should be in everybody’s knowledge, especially online traders and those with a creative instinct.