Well, the launch of Bitcoin gave rise to a whole new beast in the internet world. Majority of the business oriented minds saw a great opportunity for investment owing to the success of Bitcoin. Soon after, there was a huge burst of new altcoins being introduced. The second generation of altcoins, tried to perfect the limitations found in the Bitcoin cryptocurrency.
While the third generation were majorly focused on providing new ideas that will lure customers to their crypto platform. This led to increase in the competition levels. All in all, competition is quite healthy because each crypto will try to perform their very best and hence giving the users ultimate efficiency.
The one thing that has managed to remain constant in all cryptocurrencies is the fact that they all try to create a decentralized system of currency. This is done by eliminating any connections currencies have to the local and international banks. With that in mind, we are going to discuss one of the altcoins, Steem (STM), which is a fusion of drawing of both social media and the crypto world together with brilliant ideas to create an entirely new platform. In addition, we will discuss its history all in the aim of giving you a better understanding of the cryptocurrency.
History of Steem
Steem is a decentralized peer to peer cryptocurrency. Even though there is no evidence of the crypto platform having a centralized control, the founders and tech team behind it maintains a huge control on the Steem’s core. For you to get a chance to enjoy the benefits of Steem, you will need an account of Steemit platform. The white paper of this cryptocurrency was launched on March 2016 while the coin first gained stability in July 2016. Most of the users maintain that the platform is a form of blockchain social media system.
Daniel Latimer was the founder of both the Steem and Steemit together with his counterpart Ned Scott. The platform was built not just to be a typical website, but also a blockchain system that uses the Graphene technology which was created by Daniel Latimer. The tech is an open source system of the blockchain that uses C++ in most scenarios. It was originally created to be the building block of Bitshare. Over the years, the Graphene tech has undergone a number of modifications to increase its variation on different applications.
Graphene allows the users to deploy applications that are specific to certain blockchains which contributed to the idea of Steem. This was due to the high speed performance that the Graphene tech provided. The tech can handle 100,000 transactions process system meaning that it has remarkable speeds.
Some of the benefits this technology has to offer include:
- Control and security – it allows you to have complete privacy in your account as no one can access it.
- Direct interaction – the tech allows users to communicate directly with one another since the platform allows freedom of speech and payments for exchange of goods and services.
- Decentralized – most of the decisions made in the platform that affect the future of Steem is usually done through a systematic voting protocol by the shareholders. Hence it is not controlled by any individual.
- Fast – it takes seconds to authenticate transactions and approve them.
- Flexible – once the voting process is complete, the system is easily updated.
Even with its incredible advantages, any system won’t luck disadvantages. Some of the challenges that Graphene include:
- The password must be of at least sixteen characters which is quite long for anyone to remember.
- It is difficult to keep tabs on the users hence you will never know if they are breaking the rules and regulations or not.
Understanding Steem Coin
Steem means a smart media token (SMT). The Steem coin is used as a local asset system in the Steem blockchain protocol. It can be used to monetize any online content or develop incentives that will help encourage the user’s behaviour. The Steem coin is similar to Ethereum tokens. However, the difference is the Steem coin comes with an in-built POB (Proof of Brain) feature which is a token algorithm meant to reward and encourage participation or creation.
Cryptocurrencies are very different compared to fiat currencies since they require crypto software known as wallets to store them. In addition, the wallets can also be used to transfer or receive the crypto coin. Most of the wallets are specific to a given cryptocurrency. The wallets will help you protect your currencies from attacks by hackers and any other online thieves. You should always find a crypto wallet that will best suit you since it is not always a sure guarantee that your crypto coins are completely safe. Some of the wallets you can consider when using this crypto include:
- Steemit – this is an online wallet that has an integrated Steem. The account is difficult to hack since one has to use at least sixteen characters as their passwords. In case you lose your password, there is a well laid out procedure to recover it.
- Vessel – this is a desktop wallet that is capable of storing the Steem currency. You can run this wallet without having to run the blockchain of Steem. However, use it cautiously as it is still an experimental wallet.
- CLi wallet – this is considered the official wallet for Steem. It is also a desktop wallet. Most of the users of this wallet say that it is the most secure one.
- Esteem wallet – this is a mobile application that can store the Steem crypto coin. The wallets allow its users to keep track of the messages and followers associated with your account. Since it is a mobile app, you can check your account anytime you wish as long as you carry your phone with you.
In conclusion, I hope with the above descriptions you now have a better understanding of the Steem cryptocurrency. The Steem crypto has grown since its introduction and we still expect more which will definitely change our perception of social media platforms. This might actually be the perfect crypto for those individuals scared of using real money to invest in the crypto world.