Steem

Steem is a blockchain-based platform designed to empower content creators and curators by rewarding their contributions with cryptocurrency. Launched on 24 March 2016, the Steem blockchain introduced a decentralised reward mechanism for online content, aiming to solve monetisation challenges in social media platforms.

The project integrates blockchain technology with social media concepts, offering a transparent and censorship-resistant system where content creators can receive rewards directly from the network's protocol without relying on traditional advertising models. Its primary use case revolves around social media applications and decentralised communities where users are incentivised to post, comment, and curate content.

• Delegated Proof of Stake (DPoS): Steem uses a consensus mechanism where block producers, called witnesses, are elected by token holders, enabling faster block production and scalability.
• Fee-Free Transactions: The platform eliminates transaction fees by using a bandwidth allocation system based on token holdings.
• Decentralised Content Hosting: Posts, comments, and voting data are permanently stored on the blockchain, making it resistant to censorship.
• Primary Application: The most well-known application built on Steem is Steemit, a decentralised social media platform where users can earn cryptocurrency for creating and curating content.

*Token Ecosystem on Steem*: The Steem blockchain operates a three-token model designed to support content monetisation, governance, and economic stability:

• STEEM: The primary token of the blockchain, used for rewards and liquidity.
• Steem Power (SP): A vested token representing long-term commitment to the platform. Holding SP increases voting influence and governance rights. SP is locked for a 13-week vesting period and cannot be transferred directly.
• Steem Dollars (SBD): A stablecoin designed to maintain a peg to the US dollar, providing predictable payouts for content rewards. SBD can be converted to STEEM over a 3.5-day period.

STEEM is the native cryptocurrency of the Steem blockchain, serving as the fundamental unit of account for the entire ecosystem. It plays a central role in rewarding participants who contribute to the network through content creation, curation, and platform engagement.

As the core digital asset on the Steem blockchain, STEEM is essential for all economic activity within the platform. It functions as the primary medium for distributing rewards and facilitating transactions across the network.

STEEM is a liquid and transferable token, which means it can be traded on exchanges, sent directly between users, and used for payments without restrictions. Its liquidity ensures that users can easily exchange it for other cryptocurrencies or fiat currencies.

STEEM also serves as the base token for conversions within the Steem ecosystem. It can be converted into Steem Power (SP), a vested token used for staking and increasing voting influence, or into Steem Dollars (SBD), a stablecoin designed for more predictable payouts.