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.

As part of the project, it has created its own native cryptocurrency, 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). SBD is a stablecoin that is pegged 1:1 to the U.S. dollar.

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

Steem’s community seeks to offer users several vital services. It provides a platform with no transaction fees that facilitates seamless micro-transactions, upvoting, and other content creation and engagement with few 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, and 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.

As mentioned, SBD is a stablecoin pegged to the value of the U.S. dollar. SBD can easily be converted to STEEM via the wallet or in the ecosystem’s internal market. SBD can also be withdrawn to an exchange, traded, and sold. Items can also be purchased via third parties who accept SPB as a payment method.

Where can you buy SBD?

SBD is available for trading on the following CEXs and DEXs listed here. The most popular platform with the highest liquidity is Bittrex. The price of SBD will vary depending on the choice of exchange and overall market conditions. For up-to-date and historic data for SBD market price, please view the price charts on this page.