STEEM is the name of the cryptocurrency presented by Steem, an ascendable blockchain protocol. Steem provides one of the most social and the particular cryptocurrency platforms in the world. The platform provides a unique feature never experienced in any other cryptocurrency. This single element is cited to as the proof of brain.
What is “proof of brain”?
Does it actually mean that users have to use their brains to bet money in Steem seriously? Somehow yes!
The “proof of brain” is actually designed I a way that it encourages users to create and take care of content more so the tokens.
It is a combination of two features: the rewards pool and a trading system which uses a voting method where tokens are staked so that it can be easier to determine the amount of reward. This is a kind of a pool used by the miners of Steem. It is distributed to those valued Steem miners.
First of all, it is important to understand that Steem uses Delegated Proof of Stake (DPoS) for mining rather than using the Proof of Works (PoW), which is normally used by most cryptocurrency miners. This means there is one block mined in every 3 seconds and this rate is fixed.
After the STEEM blocks are extracted, they are distributed to the users of the platform as per the set rules. These users include the miners, witnesses, and owners. If you are careful you will not that this is different to those Cryptocurrencies which are mined using the PoW since the generated blocks are usually randomly distributed.
During mining, the rate at which new tokens are processed is set at 9.5% per year and it was set in December, 2016. The price, however, decreases by 0.01% after every 250,000 blocks are produced which roughly translates to 0.5% every year.
Now, here is where the rewards pool comes in: out of the overall generated tokens 75% of them are paid to the miners, 15% is paid to the holders while the witnesses get 10%.
Any benefits of using staked token blocks?
A stake can either be bought or earned. And in Steem, one token translates to only one vote. Therefore, even owning multiple accounts doesn’t guarantee you more rewards since at the end just the number of tokens you release into the account measured by the number of tokens remaining in your account.
This in a way brings fairness into the mining process. No wonder the Steem is cited to as a “smart” cryptocurrency.
How is the STEEM doing in the markets?
The market capitalization as per 18th January, 2018 was $1,100,286,762 USD equivalent to 93,790 BTC with a flowing supply of 247,420,028 STEEM out of the total quantity of 264,394,122 STEEM.
This supply makes this cryptocurrency one of the digital currencies with the most tokens available in the market.
One token of Steem is going for USD 4.45, which is after the slight decline in the prices after the digital coin hit its all-time high of 8.43 on 3rd January 2018. The currency experienced the most massive market movement in December 2017, rising by more than USD 7.
Vow, Steemit uses quite a complex system for allocating these rewards. Thanks for informing us about that system. And while STEEM has fallen to $4.45, I think it is still doing pretty good. I would not be surprised if it soon rises to $10.
Thanks for your precious thoughts.. Really Steem is going to do very well as we continue into the future.
Wow, Such a Brainy Post And Amazing Sharing. Thanks for your great work.
Thanks
Steemit is by the way too much secure
Using long bit password for different different purposes
This is an interesting article about the proof of brain, you have expanded my knowledge about this area.
Thanks for your views @chesatochi
It's a rather complex blockchain that they developed when you think about it.
Yes really
thanks