The Token for Decentralized Publishing
So, what exactly is the Steem digital token?
For many investors, this is a fairly confusing question. Investors often first stumble upon the Steem token through CoinMarketCap, where it's quickly gained momentum. If they didn't find it through that route, then investors often find Steem through its native platform, Steemit.
Either way, Steem's function isn't as simple to explain as Bitcoin's. To understand the token, investors only need to know about the platform that it serves.
And that's why we added Steem to our Coin Index. In this feature, we look at the Steemit platform, its creators, and how the Steem token relates to the platform.
So, let's get started by digging into the Steemit platform...
What Is the Steemit Platform?
Steemit is the world’s first incentivized blockchain-based rewards platform for publishers. For many, the easiest way to visualize this is to think about an online community like Reddit or Tumblr but with a blockchain twist.
The company behind Steemit, Inc. is based in New York City and is privately held. The company was cofounded by Ned Scott and Dan Larimer, who also created BitShares and EOS.
The Steemit platform works like this...
Say you want to post an article about your favorite cryptocurrency. You write your article, go to Steemit, and click upload. Once you post your article, the community can start up-voting or down-voting the content.
If your article gets up-voted, then you'll be rewarded. This reward comes in the forms of a cryptocurrency token called Steem and a U.S. dollar (USD)-pegged token called Steem Dollar. If you've written something terrible, your content could get down-voted.
Users can also be rewarded for finding good content and effectively moderating the platform. Users can develop Steem Power by engaging with the platform. And this gives them more power within the network.
This kind of system creates an incentive for people to only post good content on the site. If something isn't accurate or is defamatory, people can down-vote your post. But if you post something that's clever and accurate, it can get up-voted. If you're interested in learning more or even participating in the Steemit platform, you can learn more here.
But of course, that doesn't really answer the big question for investors...
Where exactly does the Steem token come into all this?
What Is the Steem Token?
When you buy the Steem token outside of the website, you're actually investing in the Steemit platform. The company outlines the goals of its platform and cryptocurrency in its white paper:
Steem aims to support social media and online communities by returning much of its value to the people who provide valuable contributions by rewarding them with cryptocurrency, and through this process create a currency that is able to reach a broad market, including people who have yet to participate in the cryptocurrency economy.
Aside from investments in the platform, both Steem Dollars and Steem Power derive their value from the value of the Steem token.
If you'd like to learn more about Steemit, you can view the website and platform here.
And if you'd like to read the company's white paper, click here.
Where to Buy the Steem Token
You can buy the Steem token on a wide range of exchanges, including Binance, Huobi, Upbit, and Bittrex.
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