Published on Feb 21, 2020
Steem provides a scalable blockchain protocol1 for publicly accessible and immutable content, along with a fast and fee-less digital token (called STEEM)2 which enables people to earn the currency by using their brain (what can be called “Proof-of-Brain”). The two building blocks of this protocol, both blockchain and token, depend on each other for security, immutability and longevity, and are therefore integral to each others’ existence. Steem has been successfully operating for over a year, and has now exceeded both Bitcoin and Ethereum in number of transactions processed.3 Compared to other blockchains, Steem stands out as the first publicly accessible database for immutably stored content in the form of plain text, along with an in-built incentivization mechanism.
This makes Steem a public publishing platform from which any Internet application may pull and share data while rewarding those who contribute the most valuable content. In the field of crypto-currencies, the unique properties of STEEM make it both “smart” and “social”compared to others, such as bitcoin and ether. This stems from two new token features. The first is a pool of tokens dedicated to incentivizing content creation and curation (called the “rewards pool”). The second is a voting system that leverages the wisdom of the crowd to assess the value of content and distribute tokens to it.
These two unique properties when combined are referred to as Proof-of-Brain, which is an entendre based on Proof-of-Work4 , meant to emphasize the human work required to distribute tokens to community participants. Proof-ofBrain positions STEEM as a tool for building perpetually growing communities, which encourage their members to add value to the community through the built in rewards structure. In addition to these advancements in blockchain and token technology, Steem as a system provides additional advanced features to enhance the user experience, such as Stolen Account Recovery5 , escrow services, user promoted content, a reputation system, and savings accounts. This is all done while providing users with three second confirmation times and zero fees on all transactions. All of this allows it to support the mission of bringing smart and social currency to publishers and community builders across the Internet.
Many users who are introduced to cryptocurrency struggle to comprehend how “magic internet tokens” awarded by the platform can actually have real world value. In order to help bridge the gap between more traditional fiat money systems which mainstream users are used to, and the cryptocurrency tokens which they are awarded through the platform, a new currency called Steem Blockchain Dollars (SBD) was created.
The irreversible nature of blockchain transactions is an important security feature, although there are many cases where users may not be comfortable sending their tokens to another individual without a way to get them back if the other user does not hold up their end of the agreement. The Steem blockchain provides a way for users to send coins to each other with a third party designated as an escrow service. The user acting as the escrow service is able to determine if the terms of the agreement have been met, and either allow the funds to be released to the receiver or returned to the sender.
Steem employs a first of its kind hierarchical private key system to facilitate low-security and highsecurity transactions. Low-security transactions tend to be social, such as posting or commenting. High-security transactions tend to be transfers and key changes. This allows users to implement different levels of security for their keys, depending on the access that the keys allow. These private keys are the Posting, Active and Owner. The posting key allows accounts to post, comment, edit, vote, resteem15, and follow/mute other accounts. The active key is meant for more sensitive tasks such as transferring funds, power up/down transactions, converting Steem Dollars, voting for witnesses, placing market orders, and resetting the posting key. The owner key is only meant for use when necessary. It is the most powerful key because it can change any key of an account, including the owner key, and to prove ownership during an Account Recovery. Ideally it is meant to be stored offline, and only used when the account’s keys need to be changed or to recover a compromised account.
