Blockchain has recently become one of the most popular technologies in the world. The tech community is abuzz with this popular mechanism. It has found great use in the practical world. In the world of social media, Steemit is the first social media-networking platform built on the concept of the blockchain.
Let us first understand blockchain and how it is benefitting the economy and then take a dive of how Steemit uses blockchain to build a social networking platform that rewards the publishers of the content.
What is Blockchain?
The blockchain considered as a digital ledger where new information is appendable and the existing information, which is stored in form of blocks, cannot be modified, adjusted or edited. With the use of cryptography, one links the data of the newly added block in such a manner that any modifications to the existing blocks in the block would make all the data in the blocks after it, stand as invalid.
The concept of blockchain is actually consensus-based. There are several computers connected on the network. The scope that an intruder might falsely add a transaction to the ledger on the network reduces by having a system wherein those wanting to append their transaction on the network need to solve a mathematical proof and this result shared amongst all the other computers on the network. Since all the computers on the network need to agree on this mathematical solution or proof, this blockchain mechanism is consensus-driven.
Moreover, it is to be noted down that there is no single entity that holds the accountability and control of the information on the blockchain network. All the nodes on the blockchain network need to be agreement. This simply explains the magnificent construct of blockchain that the transactions in the ledger can be publicly published and also verified.
The concept of blockchain ensures that transparency, as well as cryptography, is maintained for the purpose of security with immutability the highlighting feature of blockchain mechanism.
While blockchain is still in its early stages, it has found application in many sectors such as social media, healthcare, banking and many more.
How blockchain can be used as a social media and networking platform?
Blockchain has increasingly found application in every sector of the economy rather than just cryptocurrency. It has evolved as a technology that records the transactions is a secure and tamper-free way and exchanging this data.
The social media uses blockchain as a means to verify news and information. The concept of the distributed ledger in the blockchain helps prevent the creation of fake profiles on the social media platform. This means that blockchain can be used for the verification and authentication of the identities and the information and data posted on the social media site. This advanced technology promises that the users will have the control access of their posted information and where it is supposed to go. In short, users will have the benefit of safeguarding the access to their information. This provides the user with the ability to dispense their information with the advertisers on any platform, probably with a fee.
The technology also encourages peer-to-peer sales and crowdfunding as well.
Steemit that is built over the blockchain architecture is the first social networking platform using blockchain.
What is Steemit? – A Deeper Look
Steemit is a website that offers people a platform on which they can read blogs and socialize with others and allows creation and curation of content and wherein the creators and curators get to pay for their content. Steemit Inc. is the owner of the website, launched it in 2016 and has over 1 million users. The social networking website uses STEEM blockchain that generates tradable tokens known as STEEM and its backed dollars obtained for posting, discovering and commenting on the content.
This social news community is available mostly in English and in some other languages such as French, German, etc. This social networking website works with the intention of solving the long-term problem wherein the creators, curators, and publishers of the content could not effectively monetize their content.
How does the website work?
The website is a highly regarded content-driven social platform where the users receive awards in form of cryptocurrency for participation.
This is how it works:
- The greater the value a piece of content provided to a large number of people, the greater is the count of the people that can earn through that created or curated content.
- The architecture provides a means for the users to vote, thereby, generating a hierarchy or list of content. The greater the count of the upvotes or likes registered on the content, the more the content will earn. The website also provides an option for downvote for an effective rating of the content.
- The website gives more power to the users who hold the currency by allowing them to put their votes with a greater level of influence.
There are three types of digital tokens made for the website’s platform. These include:
- STEEM: This is the foundation cryptocurrency of the STEEM ecosystem. This digital currency is exchangeable with any other cryptocurrencies at all the major exchanges. Moreover, your STEEM needs to transform to Steam Power in order to cast in votes, which is known as the ‘powering up’ process. This STEEM cryptocurrency is convertible to STEEM Dollars.
- Steel Power: STEEM Power or simply SP when converted from STEEM, it acts as an investment into the network. A single unit of STEEM, known as SP, is equal to one vote. The users with greater SP have greater influence over the upvotes on the content. When converting STEEM Power to STEEM, the process is known as powering down and there are rate limits set for that purpose.
- STEEM Dollars: STEEM Dollars equates at 1:1 ratio with the US dollars. It represents a short-term debt.
Users either can earn STEEM or can buy it. One can buy STEEM from known cryptocurrency exchange agencies, while one can earn STEEM by getting more involved into the network by posting, commenting and sharing the content.
This way Steemit is one of the most popular and renowned blockchain-based social networking platform giving creators and curators of content their rewards.