History Of Steemit.com – First Blockchain Social Media System

In the ever-evolving landscape of social media, Steemit.com has carved out a unique niche by combining the power of blockchain technology with the concept of decentralized content creation and curation. Launched in 2016, Steemit.com introduced a revolutionary platform where users can create, share, and engage with content while being rewarded in cryptocurrency.

In this article, we’ll take a deep dive into the history of Steemit.com, exploring its inception, development, challenges, and its impact on the social media and blockchain space.


Genesis of Steemit

Steemit.com was conceived by Dan Larimer, Ned Scott, and a team of developers who sought to create a decentralized social media platform that rewarded users for their contributions. The project aimed to address the challenges faced by traditional social media platforms, such as issues related to content ownership, transparency, and monetization.

Launched in March 2016, Steemit.com introduced a unique ecosystem where users could earn Steem cryptocurrency through a process known as mining or “mining for upvotes.” The platform’s underlying blockchain, Steem, utilized a Delegated Proof-of-Stake (DPoS) consensus mechanism, providing a faster and more scalable alternative to traditional Proof-of-Work (PoW) blockchains.


How Steemit Works

Steemit.com operates on a reward system where users are incentivized for creating valuable content and engaging with the community. The platform utilizes three native tokens: Steem (STEEM), Steem Power (SP), and Steem Dollars (SBD).

Steem (STEEM): STEEM is the base cryptocurrency of the Steemit ecosystem. Users can earn STEEM through content creation, curation, and by participating in the platform. STEEM can be traded on various cryptocurrency exchanges.

Steem Power (SP): Steem Power represents a user’s influence on the platform. By converting STEEM into SP, users increase their voting power and influence over content curation. SP is also staked, meaning it is locked in for a specific period, providing a long-term commitment to the platform.

Steem Dollars (SBD): Steem Dollars are pegged to the value of one USD and are used to provide a stable source of value within the Steemit ecosystem. Users can convert SBD into STEEM or use it to trade on supported exchanges.


Key Features and Milestones

1. Decentralized Governance: One of Steemit’s groundbreaking features is its decentralized governance model. Users holding STEEM can participate in decision-making processes by voting on proposals through a system called the Witnesses. These Witnesses are individuals or organizations responsible for validating transactions and maintaining the Steem blockchain.

2. Smart Media Tokens (SMTs): In 2017, Steemit introduced Smart Media Tokens, a customizable token protocol that allowed other projects and platforms to create their own tokens on the Steem blockchain. This move aimed to expand the use of the Steem blockchain beyond the confines of Steemit.com.

3. Communities and Hard Forks: Steemit.com underwent several hard forks, including the notable Hard Fork 20 in 2018. Hard forks were instrumental in implementing updates, addressing scalability issues, and introducing new features. The introduction of communities on Steemit allowed users to create and join groups based on shared interests, fostering a more organized and engaging environment.


Challenges and Controversies

While Steemit.com gained popularity for its innovative approach to social media, it also faced challenges and controversies:

1. Centralization Concerns: Despite being built on blockchain technology, critics argued that Steemit.com faced issues related to centralization, particularly in terms of power concentration among major stakeholders and Witnesses.

2. Economic Model Adjustments: The platform experienced fluctuations in its economic model, with adjustments made to address concerns about the distribution of rewards. Changes to reward algorithms sometimes led to disagreements within the community.

3. Competition and User Retention: As other blockchain-based social media platforms emerged, Steemit faced increased competition. User retention became a challenge, prompting the platform to explore new features and improvements to maintain its user base.


Acquisitions and Steemit Inc.

In 2020, Steemit Inc., the company behind Steemit.com, underwent a significant change in ownership. TRON founder Justin Sun acquired Steemit Inc., leading to a collaboration between the Steem and TRON ecosystems. This acquisition sparked both excitement and concerns within the Steemit community, as users speculated about the potential integration of TRON’s technology into the Steemit platform.


The Hive Split

Amidst the changes in ownership and governance, tensions escalated within the Steemit community, leading to a significant event known as the Hive hard fork in March 2020. A group of community members, dissatisfied with the acquisition and seeking greater decentralization, initiated the Hive blockchain, creating a separate network with a new cryptocurrency called Hive (HIVE).

The Hive community aimed to continue the decentralized and community-driven principles initially envisioned by Steemit.com. The split resulted in a division of user bases and assets between Steemit and Hive, each pursuing its vision for a decentralized social media platform.


Current Status and Future Prospects

As of my last knowledge update in January 2022, Steemit.com remains active, and the Steem blockchain continues to operate. The platform has undergone various updates and changes, reflecting the dynamic nature of the blockchain and cryptocurrency space.

The future prospects of Steemit.com depend on its ability to adapt to industry trends, address user concerns, and foster innovation. The integration of decentralized finance (DeFi) features, enhanced community engagement, and improvements in user experience may play a crucial role in shaping the platform’s trajectory.

In conclusion, Steemit.com stands as a pioneering experiment in combining blockchain technology with social media, challenging the traditional model of centralized content platforms. Its journey reflects the complexities and opportunities inherent in decentralized systems, and the impact of Steemit.com on the broader social media landscape continues to be felt.

Whether it remains a cornerstone of decentralized social media or serves as a blueprint for future projects, Steemit.com has undeniably left its mark on the evolving narrative of blockchain-based platforms.