✔️ Information reviewed and updated in April 2024 by Pedro Martínez González

The future is digital, there is no doubt about that. And it is that the arrival of the internet has allowed us to create a large number of improvements for our day to day as Steem. Today we can communicate, buy and even earn money with just one click. Amazing, right?

The arrival of the internet has also allowed the emergence of so-called cryptocurrencies, digital currencies that operate through the use of Blockchain. Here we will talk about one of these currencies which stands out for incorporating the best of both worlds. On the one hand, we have a social network and on the other, a virtual currency.

▶ What is Steem?

We could say that Steem is a platform that unites both cryptocurrencies and the concept of a social network. Basically it is a community that allows users to interact and receive rewards for generating content or evaluating it.

The construction of Steem is carried out on Blockchain technology or chain of blocks describing it in a more technical way as a database on a Blockchain. Its interface is very similar to that of a social network, since it allows you to create a profile, add your friends and also generate content.

Although the objective of Steem is not to be a social network, rather it seeks to become a platform to operate virtual currencies without intermediaries. Its birth uses part of what were the main pillars of networks like Facebook betting on the generation of content, as well as the user.

According to data from the platform, the author receives 75% of the reward while the evaluator 25%. The prestige of both parties also influences here, as this can make the reward juicier. This reward is given in virtual currencies of the platform which have the same name.

▶ Steem points to consider

If we compare Steem with other cryptocurrency platforms such as Bitcoin or Ethereum we would find some significant differences such as the following:

• 3 cryptocurrencies on 1 platform: This point is quite curious to evaluate, since Steem operates 3 virtual currencies. Steem is the free coin, the one that everyone trades, Steem Power is a kind of fixed-term deposit like in a bank and Steem Dollar which have 1 to 1 parity with the dollar and they are the reward that content creators receive.
• Anti inflation: By using Steem Power as a depository for Steem coins, it is possible to create an effect that allows the coin to be more stable and less volatile. What's more, Steem uses its 3 coins as a way to control its inflation. And if that is not enough, with Steem Power it provides a performance of 1% per day.
• No commissions: Another point in favor that you should know about Steem is that it operates without commissions, this means that micropayments between members are free. For many it is an advantage over other currencies that do charge commissions for their use or handling.
• Transaction speed: Compared to Bitcoin, for example, the transaction speed is much higher on Steem. If we compare numbers, Bitcoin makes 1 single transaction for every 50 to 100 made by the Steem system. This is possible thanks to the fact that Steem's system is improved compared to the old Bitcoin Blockchain.
• Interactivity: Finally, you should know that the interaction between users is much higher in Steem. This is because, the more content you generate and evaluate, the more rewards you will receive. In few cryptocurrency platforms a similar process is carried out and there is so much interaction between users.

▶ Technology in operation 

To work, Steem uses two technologies on a single platform. On the one hand, we have the database and on the other the Blockchain. This is because, being an open system, anyone can register, see the content generated and know how much you earned for it.

Its blockchain, known as ChainBase9, has significant improvements over its predecessor, Graphene10, as well as other Chainblocks. Enhancements have been added to ChainBase9 that allow much faster loading and output times. It also supports parallel access and incorporates better firewalls.

Another very outstanding feature of this platform is the fact that it modulates the blocks of the chain, that is, it divides and distributes them among the community. This allows the community itself to be in charge of managing the block network. Thus, greater security, efficiency and interaction are achieved.

The use of the best technology in Blockchain allows to have functions as a kind of savings account. Here you can leave your Steems stored to avoid wasting them for a certain period of time. In addition, it incorporates new security measures to prevent hacks and cyber attacks.

▶ Mining 

A great advantage of Steem is that it can be mined, which allows you to access the benefits of your coins easily. The process is simple and is known as 63 × 21, that is, rounds of 63 seconds with the presence of 21 witnesses or 21 miners, which is the same.

The Proof-of-Work algorithm is in charge of making the Steem mining process possible. 90% of the rewards are sent to a fund which is designed to reward miners for their work. The remaining 10% is distributed through content creators.

▶ Is it worth it?

This platform has several points in its favor. The first is that the day it was launched on the market was a success, users received it very well. The second is in its concept which is unique, a mixture of social network and cryptocurrency.

Having 3 digital currencies or coins is another reason why the proposal is striking because this is rare. In addition, we have the fact that the 3-coin system and its savings accounts mean that inflation does not affect Steem as it does with other currencies.

About the Author: Pedro Martinez Gonzalez

I'll tell you a little about myself! I am a financial analyst and economist with a master's degree in finance.
About my studies: I studied at the University of Salamanca for a Degree in Economics and then did a Master's in Finance in Madrid.
Do you want more information? You can read more about me here in my biography.

You can read more about me here.