What is Steemit and how does it work?
What is Steemit and how does it work?
How to make money with Steemit, the crypto blog.
At Bitcoin Crypto Advice, we have a Steemit Blog:
The human being is naturally social. Over the years, he has evolved not only physically, but also in his way of communicating.
In the same way, his intellectual abilities allowed him to design and build tools facilitating communication with his peers, even by removing linguistic and geographical barriers.
Technological progress has spawned a wide variety of media, from radio and television to smartphones and social networks.
They deserve special mention because of the great acceptance they have received for more than 10 years and continue to excite their influence in the daily lives of those who use them.
And it’s that its purpose transcends the simple act of sharing travel photos with our friends and family.
Given the strong presence of users in networks, large companies have begun to shift their marketing strategies to rich platforms such as Facebook and Instagram, to present promotions and information about their products and services.
However, social networks have also led to other ways to make money, which go beyond the sale of products.
Content creation and value in a community has enabled many Internet users to earn money through writing, social media management, advertising, and more. Youtube, Instagram, Facebook, etc…
At this point, one must first ask what is the purpose of social networks?
In general, we share reports, photographs, detailed notes and videos completely free of charge.
In fact, we are practicing a high level of altruism without knowing it, because, although few people are aware, the sheer volume of published and shared content every second on these platforms is generating profits for their owners.
Let’s understand why.
All the information we provide when registering and using our social networks, which are already essential, are used by developers to know their users in detail.
Thus, they can present you, in a very strategic way, the advertisements most suited to their tastes and interests, which generates a significant income that most users have no idea.
Today, our readers may have begun to wonder why we are talking about social media in our cryptocurrency blog.
Well, the human intellect has managed to combine the benefits of these websites and the crypto kernel into a new social network called Steemit.
Then we will present all the details.
What is Steemit?
To explain what Steemit is, it is wise to go back to the birth of Bitcoin about 10 years ago.
At the end of 2009, Satoshi Nakamoto published an article explaining a new P2P protocol describing how a digital currency based on blockchain technology works.
Since then, this has been found very useful in the field of economics, as an effective alternative, a ledger in which to record all transactions on a given network.
However, over the years, it has been shown that its utility transcends these boundaries and has different applications in many other areas.
Steemit was created by Ned Scott and Dan Larimer, the creator of the famous Bitshares exchange.
It is a social network built at the top of the cryptocurrency block chain Steem, which aims to reward its users as bloggers and critics, maintaining the basic principle of decentralization, in a fair and naturally autonomous way.
That said, Steemit stands out from other similar social networks by the way the generated information is stored.
In general, these platforms protect all content on their own servers, while Steemit saves it in its own Steem blockchain permanently.
Here is his important relationship with the cryptographic world.
How does Steemit work?
Steemit works like a social network where registered users can upload and share visible content for other members of the network, who can vote, good or bad for this publication.
Likewise, make comments and receive rewards from them through the vote of their counterparts within the platform.
When a Steemit user publishes a certain content and receives a vote, he gains an equally shared value between the tokens in the network.
50% is consumable money, which is represented by Steem Dollar, while the remaining 50% is Steem Power’s voting power, which can be used to value other publications.
With this, the developers try to promote the participation of their users in the creation of content and thus keep the community active.
As we said, Steemit stores all the information generated on its platform in its chain of blocks, with the slight exception that they have a separate server for the images that accompany their content.
However, as part of the operation, it is also worth mentioning how Steemit users can interact with publications to fulfill the objectives described above.
Upvote, which is very similar to Facebook’s famous “Like”.
With Upvote, users express their attachment to published content and thereby gain value.
Unlike the previous function, it is equivalent to “I do not like”.
As expected, there is an option that prevents some content from gaining value and visibility for other users is limited.
Usually, the flag is used to qualify the content as spam, which can include plagiarism, offensive language, incitement to violence, among others.
Given its significant influence on the social network, it is necessary for Steemit users to make good use of it, otherwise it could lose its reputation.
With this option, registered users can comment on the publications and, in the same way, respond to others in the process.
Again, another similarity with other social networks such as Twitter.
With Resteem, we can share content that we consider to be of better quality or to our taste in particular.
Steem controls the publication but does not rely on developer rules, it means that the content is managed by a “community moderation”.
This means that although there are no guidelines to indicate which position is appropriate or not, the voting process performed by the same community members serves as a filter and reference to implicitly stipulate them.
In this regard, at this point it is worth mentioning the “moderators”.
With this name, known Steemit users who have the task of verifying the information of a given publication.
Check the sources of the articles to avoid having plagiarized articles and evaluate their content in terms of quality and relevance to follow up the votes, leaving aside the personal criteria.
How to register on Steemit?
Registering for Steemit is very simple, and for that, you just have to follow the usual steps to access the platform of a social network.
You must specify an email and, of course, a username with which you will be identified within the network.
In addition, there is a verification in two steps, it is necessary to add a phone number.
You can not open two Steemit accounts with the same phone number.
Once this information is provided, Steemit will evaluate the entry of the new user on its platform.
Then they will send an email to the specified address, and here is one of the most singular and striking points of this case.
Steemit will assign the password to the user and send it to the message without the ability to customize or modify it.
Once the process is complete, you can enter the Steemit network with your username and password, start sharing and commenting on your content in exchange for Steems.
Never forget your password!
The basic rule when registering and using Steemit is: Do not lose your password.
This platform, unlike its counterparts, does not have password recovery options, which means that in case of loss, it will not be possible to change or recover it.
Remember that this network generates the password of each user, randomly, which implies that it is probably very difficult to remember mentally.
To avoid any loss of your assets and your reputation within Steemit, we recommend that you copy the password in a safe place that you can consult if you have forgotten it.
Your Steemit password is your private keys for the Steemit platform.
How is Steemit organized?
Once the Steemit listing was described in detail, it was time to explain its three main components.
These are represented by the Steem, Steem Dollar and Steem Power, which we will discuss later.
Steem is the official cryptocurrency on which the Steemit community is based.
It can be obtained by buying on a crypto exchange like Binance for example, or by the performance and work devoted to Steemit, and for the latter, Steem Power is necessary.
Steem can be traded for other cryptocurrency like Bitcoin and others.
It is important to emphasize that, unlike other crypto-currencies, Steem does not have any limitation control in terms of unit generation.
The amount of Steems increases by 100% per year.
So there is no fixed amount, but it increases every year.
The Steem Dollar is presented as an asset that should have about the same value as the US Dollar, like a stablecoin.
It includes a form of gain by interacting with the content of Steemit.
Once obtained, users can use them as they do with a cryptocurrency, or turn them into Steem Power.
As we said, Steem dollars maintain a ratio of 1: 1 against the US dollar.
They generate an annual interest of 10% as long as they remain in the platform and its value does not exceed that of 1 USD; if so, the generation of interest ceases.
On the other hand, if the value of the Steem Dollars is less than 1 USD and the amount is also small, the interest generation increases.
Steem Power is the way the Steemit platform offers its users the opportunity to vote and comment on existing publications.
Thus, they manage to improve their “reputation” or their influence within it.
When a user registers with the Steemit community, he gets a quantity of Steem Power so that he can start interacting with the content.
This is spent as comments are formulated and voted on, but as we said before, it is possible to bring Steem to Steem Power.
The process is called Powering Up.
That said, it should be mentioned that as a user with greater power of Steem, he will have a greater influence on the publications he votes.
In fact, if the content is well voted by someone with a high Power Steem, he will be rewarded with Steem, Steem Dollar or Steem Power cryptocurrencies.
With this, we have that Steemit is a purely meritocratic platform, because the vote that has the greatest influence is given by the users who have the most money.
Payment for content creation is at the discretion of the owner.
He can receive 50% in Steem tokens and 50% in Steem Dollars or, if you wish, get full payment in Steem Power.
How much can you make with Steemit?
How much money can you earn with the Steemit network?
So you can make money with Steemit, your blog, like a wordpress blog actually, can earn you Steem tokens or Steem Dollars.
This is the different aspect of cryptos projects, we aim to compensate content creators for their work through the community.
Basically, you are paid to provide content and no longer the opposite of most conventional social networks where Facebook, Twitter earn billions of Dollars thanks to the content of its users without ever paying them!
This is what cryptos projects like Steemit want to change, to reward content creators.
Without content, there is no social network and therefore no revenue related to these contents.
You are going to say that Facebook is free for users, yes, but the money generated by Facebook is huge without ever paying a cent to all those people who provide free content to Facebook who sell them to advertisers for huge amounts of money!
Even if a known Steemit user has managed to earn $100,000 in just one week, this is a special case.
The expectation of a new user is very small, and if they become constant, it should be around $500 a month, to get enough followers to generate some recurring income.
Here, it should be noted that, despite its practical appearance, Steemit is a website with many users, and like for any website, you have to build your audience and have followers.
So, to make money with Steemit, you have to publish a lot of content, it takes work and time.
Easy money does not exist and neither on Steemit, but if you give yourself hard time with good content, you can start generating income that will grow over time!
In fact, remember that to publish content, it must be original and meet some intrinsic criteria for the moderators.
If the voters who vote it have a high power of Steem, the benefits of the creator will be better.
However, we must keep in mind that this is not constant.
Does Steemit have any disadvantages?
So far, Steemit seems to be the perfect place to enjoy our love for social networks.
However, everything is not always great. There are not very favorable points that should be mentioned and then explained.
Imbalance of voting power
We have already explained that Steem can be exchanged for money or a vote, but that it can be applied as a hidden disadvantage.
And the fact is that the more a person accumulates Steem Power, their votes and comments will have a lot of value within the platform compared to other users.
This situation, although very profitable from a certain point, has managed to generate harassment by vote.
In addition, do not exclude the possibility that some users with high voting power could damage other users’ posts and prevent their promotion on the network, even when they meet the quality requirements.
Risk of piracy
Although virtually everything that has been exposed so far seems to be in favor of this social network, there is an undeniable reality: the risk of hacking.
This is one of the biggest fears for those who are interested in joining the community, as cyberattacks have already cost the users of various platforms millions of dollars.
In fact, in 2016, Steemit was hacked into which 260 accounts were affected and about 80,000 Steem were stolen.
And although the network has momentarily shut down and be liable for damages, repaying the money to each of the affected users, this risk remains a latent concern.
High risk of losing the account if the password is lost!
Another disadvantage that we can mention is precisely related to an intrinsic safety measure of the platform.
And it’s because Steemit does not have the ability to recover the password if you forget or lose it.
So, if we do not have the foresight to write it down or keep it in a safe place, we can give up all our money and influence on the network …
A very important point not to neglect is the fact of inflation.
Unlike other crypto-currencies, Steem does not have a limited number of units, but generates more and more coins, which are distributed among the members of the network.
With that, we know that everybody will get some tokens, however, we have an imminent risk of inflation, which could become a little absurd over time if inflation rises too fast.
For this reason, many recommend changing Steem to Steem Dollar, which, as we said, generates an annual interest rate that can be advantageous.
We have understood that Steemit is an innovative social network that seeks to leverage the benefits of Blockchain technology to reward its users for their contributions with quality content.
In this way, the continuity of its members and the frequent updating of the blockchain are guaranteed.
For those who love new things, new projects, who are exhausted by the routine of Twitter, Instagram or Facebook, Steemit is a great alternative to see articles and other contents of guaranteed quality.
With this, the authors manage not only to clarify doubts or to satisfy their hobbies, but also to generate profits and to learn more about the interesting world of cryptocurrencies.
The future will say if Steemit is the future of blogging, all this is based on the adoption of this new social network, the evolution of its features, its design.
In any case, Steemit is a social network that allows its authors to earn money for their work unlike all other social networks and this is already a very big positive point!
Bitcoin and cryptocurrency maximalist. Alexander follows Bitcoin and crypto since 2015.