Steem is an open-source social blockchain platform designed to incentivize the creation and sharing of content on decentralized social networks. It does this by monetizing content creation and reducing the necessity for advertisements and the selling of users’ data. Instead, content creators themselves are rewarded for the value they contribute. The first application to launch on Steem was Steemit, in 2016. So far over 60 applications have been created by social media developers. Steem is scalable and thus would be suitable for widespread adoption.

As part of the project, it has created its own liquid currency STEEM. Content creators and social engagement within the Steem community are rewarded with STEEM Tokens. The Steem network also includes other assets, Steem Power (SP) and Steem Dollars (SBD). STEEM however is the fundamental currency of the Steem blockchain and all other assets within the platform derive their value from STEEM.

Steem was created in 2016 by Dan Larimer, the creator of BitShares and EOS.

What are STEEM’s key features and how does it work?

Steem’s community seeks to offer users several key services. It offers a platform with no transaction fees that facilitates seamless micro-transactions, upvoting, and other content creation and engagement with little financial barriers. Additionally, it seeks to provide a source of news and information for users and a means to ask other network users personalized questions.

Steem uses a Delegated Proof of Stake (DPoS) consensus mechanism. The mechanism uses 21 witnesses to validate transactions on the network and produce new blocks in the blockchain. 20 of the witnesses are full-time whilst the 21st position is reserved for backup witnesses who rotate in this position. This differs from Proof-of-Work, another common consensus mechanism. In PoW miners compete to validate transactions and produce blocks. Blocks on the Steem blockchain are created every 3 seconds. The delegates are selected through a voting system, users who stake STEEM tokens are entitled to vote.

The Steem blockchain produces new tokens every time a new block is produced. 10% of these new tokens go to the delegates who produce the blocks as rewards for their participation in securing the network. However, a large portion is allocated to the ‘rewards pool’. This pool forms part of Steem’s unique ‘proof of brain’ social consensus algorithm used for allocating tokens. Essentially content and engagement in the network are evaluated based on the value it brings to the network. Part of the evaluation involves users voting content up or down.

Users are then paid in STEEM for the content they provide, where the amount of payment a user received is based on the social value they have been deemed to provide. Users who contribute high-value content, with more ‘upvotes' are paid more. The payments come from the tokens stored in the ‘rewards pool’. Curators, i.e. users that identify and upvote valuable content before it becomes popular are also rewarded. Steem is unique as it is the first blockchain that uses this ‘proof of brain’ social consensus.

Where can you buy STEEM?

STEEM is available to buy from the CEXs and DEXs as listed here. It is listed on several major exchanges including Binance and Gate.io. The price of STEEM will vary depending on the exchange. It will also fluctuate based on current market interest. For more detailed price information please refer to the price charts above.