Steemit: A combination of blockchain and social media

When a previously unknown digital currency with a market capitalization of just 14 million US dollars rises to 400 million US dollars within a very short period of time, then the sensation is caused.

If this digital currency also serves as the basis for a social media payment unit that rewards people for creating content, sometimes with several hundred dollars for a single post, then doubts or euphoria quickly arise.

Steemit, which can be described as a “blockchain-based social media platform”, was founded in March and became increasingly well known in July. So far Steemit seems to divide the Blockchain community.

Nonetheless, the Bitcoin loophole platform is making many newcomers familiar with Blockchain technology

Behind the Bitcoin loophole platform are Daniel Larimer, founder of Bitshares and Ned Scott, a former financial analyst. With Steemit, they want to give people a way to create their own content, promote it or comment on other content while making money. Read more here:

But Steemit is much more than just a website where you can earn some small change. The Steemit blockchain is based on a technology developed by Larimer called Graphene, which enables the use of specific blockchain applications.

The rise of Steemit

The big breakthrough came only on July 4 when 1.3 million US dollars were distributed in the form of the digital currency Steem to the platform’s participants, who had previously been involved in mining and providing content.

Scott explains that the reward for the platform’s participants was deliberately not spent before July 4 to test the platform in advance and find bugs before it becomes available to a much larger audience.

After all, despite the careful work of the development team, bugs cannot be ruled out. So the phase before July 4th was used to make Steemit as safe as possible.

That’s what Scott says:

“What happened on July 4th was like a three-month day that finally ended. The distribution of the proceeds is working perfectly today, a moment we’ve been working hard for.