What is Steemit and how does it work?

Steemit is a social network that has been receiving a lot of attention in the past few months.More than one million Steemit users worldwide, making this website one of the most visited websites in the world.

However, unlike regular social networks, Steemit's activities are tightly integrated with Steem electronic money and this gives users attractive features.

So what exactly made Steemit famous?Let's find out later.

What is Steemit?

It can be said that Steemit is a 'hybrid' software because the foundation of this software is a combination of blog model and social network.In terms of the most basic features, Steemit works very much like Reddit, for example, you can upvote, downvote, track topics that interest you, as well as send content and debate with people. use other posts.

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However, this is also a revenue sharing site, and this is when e-money really works.Steemit pays users in electronic currency Steem, instead of regular currencies like US dollars or pounds.

On Steemit you not only get paid when posting content on the page.But also can earn Steem from comments and even just upvoting other posts that you also have money.

How does Steemit work?

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While conventional social networks store all content on their own servers, all content on Steemit is hosted on Steem blockchain.However, for images, you will still need to use a third-party hosting site, such as Imgur.

Using blockchain for archiving brings some practical benefits.Typically, you hold permanent ownership of your content and no one can arbitrarily remove that content.

More importantly, the entire money management system is always built and strengthened by the blockchain every day.Blockchain creates a new amount of Steem every day.In it, Steem Power holders enjoy 5%, 75% belong to the community, while the Steem digger will take the remaining 10%.And how much users earn from those 75% depends on whether their posts are 'hot'.

Note: Before continuing to read this article, make sure you know how a blockchain works.

How Steemit manages the budget for the community

When creating a new content, you can optionally receive your royalties.Can be 50% Steem, 50%Steem dollarsor get the full amount right in Steem Power.Here are the basic differences between the 3 options above:

1. Steem: Just like other electronic currencies. Using Steem is very flexible, you can use Steem to trade and transfer as well as carry out buy and sell transactions with large electronic currencies. and send in secure accounts.Steem is priced based on the value of other currencies based on Steem platform.
2. Steem dollars: Steem dollars can be viewed as adebt instrument (debt instrument)associated with the US dollar.In addition, you can also convert Steem dollars into Steem.Steem dollars are accepted in some electronic money transactions.
3. Steem Power: It is understandable that Steem Power is like an indicator of your influence in the community.That means the more you own Steem Power, the higher the upvote value in your community.Steem Power is a tool created to keep users engaged with Steem for a long time.It is difficult to convert Steem Power into cash.The process of selling Steem Power (powering down) takes up to 13 weeks.After 13 payments you can receive the full value of Power you own.In addition, Steem Power cannot be traded.

How much money can be earned on Steemit?

First, Steemit is not a program to help get rich quickly.Like other social networks, some posts on Steemit can spread quickly and gain a great deal of interest, helping authors earn a significant amount of Steem in a short time.

But if you want to make money on Steem in a sustainable and long-term way, you will need to invest time and effort to improve follow-up, expand your influence in the community and ensure the quality of the content that I posted.Remember, Steemit is basically a social network.

Particularly, some people may pocket more than $ 100,000 per week from their posts on Steemit.But not many people can do so, so don't put too much expectation on getting rich thanks to Steemit.Earning more than 500 dollars / month on Steemit has been very pretty already.Especially if you're a 'newcomer' don't be disappointed if you only earn a few dollars.

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Is Steem a valuable electronic currency?

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With market capitalization of up to about $ 440 million, Steem is in the top 40 in the world.The value of the Steem peaked in early 2018 with $ 7.31 changing to a Steem.However, considering the average in the last 12 months the value of the Steem increased from about $ 1.50 to $ 4.

What disadvantages does Steemit have?

So far, we have painted a pink picture of Steemit, but social networks always contain some disadvantages that users need to know .

The articles are gone too quickly

Some users have complained that they spent a lot of time and effort on the content that they posted, so their posts were washed down after spending a few minutes due to not receiving enough turns. view from the beginning.

Unbalanced Power vote.

When a person owns more and more Steem Power, it means that their votes (both upvote and downvote) become more valuable than votes of other users.This has led to allegations of inequality in the vote.Accordingly, a few long-time users can shake hands with each other to hope to make money from your posts.

Threats from hackers

One of the scandals that when it comes to virtual money world, everyone has to mention that is the problem of hacking.In fact, there have been many hacks aimed at high-value electronic currencies, causing millions of dollars in damage to users.

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In July 2016, Steemit was looked at by hackers, and as a result, a total of 260 accounts were compromised with more than $ 80,000 gone.Although in fact, the study of the way the attacks were not overlooked, but one can be sure how these attacks cannot continue in the future, and how much more will be available. More money is stolen.

Risk ability

Some Steemit users expressed concern that if the giants were holding a huge amount of Steem suddenly withdrawing all their money in one go, Steem's value could be broken in a blink of an eye.Also negatively affects the amount of money you can earn in the community.

Reset Password

Due to the basic nature of the blockchain, you will not be able to reset your Steemit password.So if you lose or forget your login information, your account will be permanently locked without any way to get your account back.So you need to pay full attention to your login credentials, preferably using a password manager.

Steemit: One of the worthy replacement

If you're tired of the constant quarrels on Twitter, headaches because of the selfie photos on Instagram and the kids on Facebook, Steemit is a place to stay.Steemit is just one of many "substitutes" who deserve your attention and their existence is a great thing.Have you ever wondered about the positive impact of social networks on our society?

See more:

1. The easiest way to make money online
2. Top 10 social networks to replace Facebook (part 1)
3. Top 10 social networks to replace Facebook (part 2)