It has problems right now and has been that way for the last few versions. The decision was made to remove it rather than constantly spend time trying to fix it.
I don't think it would affect users or the price seriously. No one can PoW mine now (beside the 1-2 user who found out how to bypass the rules), it's a depreciated part of the system.
Creating content doesn't actually "mine" anything per say.
The "mining" happens currently by traditional PoW mining, as well as DPOS through the witnesses. Witnesses/miners produce blocks, and a certain percentage of each block reward is put into the rewards pool, which is then distributed to the people creating content and curating.
I think removing PoW (mining) won't have a negative impact on the platform, since there are plenty of people on Steemit. Steemit is just one app for the Steem blockchain. I believe there will be more "apps" that connect to the Steem blockchain.
But if noone is mining doesn't that mean no more steem is being created? aka limited supply, high demand = price increase?
STEEM is not limited, it has a 9.5% yearly inflation rate that will descend with time. PoW was there for those who wanted to stay outside of the politics that a witness has to play to be successful (aka get the most votes). PoW could provide additional security if there are a lot of miners, but with mining monopoly it's just another 'witness'. We don't get any advantage maintaining it.
Proof of Work - or mining.
It has problems right now and has been that way for the last few versions. The decision was made to remove it rather than constantly spend time trying to fix it.
Thanks...forgive me for my ignorance...I had heard @craig-grant mention this a while back as well.
How will this affect the price of steem and how will it affect the steemit community in your opinion?
I don't think it would affect users or the price seriously. No one can PoW mine now (beside the 1-2 user who found out how to bypass the rules), it's a depreciated part of the system.
But if noone is mining doesn't that mean no more steem is being created? aka limited supply, high demand = price increase?
Steem is being created from our blog posts, comments, and curation activities on Steemit
? How does that CREATE a currency?
It's like "mining" bitcoin, except we mine Steem by creating content.
@jetsa makes sense :] cheers
Creating content doesn't actually "mine" anything per say.
The "mining" happens currently by traditional PoW mining, as well as DPOS through the witnesses. Witnesses/miners produce blocks, and a certain percentage of each block reward is put into the rewards pool, which is then distributed to the people creating content and curating.
Really....but if that is the case why did we need traditional miners in the first place?
I don't know. I believe Steem is getting rid of PoW (traditional mining) in the next update.
yes...and how do you think that will affect the platform as well as the currency?
I think removing PoW (mining) won't have a negative impact on the platform, since there are plenty of people on Steemit. Steemit is just one app for the Steem blockchain. I believe there will be more "apps" that connect to the Steem blockchain.
STEEM is not limited, it has a 9.5% yearly inflation rate that will descend with time. PoW was there for those who wanted to stay outside of the politics that a witness has to play to be successful (aka get the most votes). PoW could provide additional security if there are a lot of miners, but with mining monopoly it's just another 'witness'. We don't get any advantage maintaining it.
So how does an inflation rate descend? ( im clueless about economics)
That 9.5% will be reduced by 0.5% yearly by the code.