Steem Staking Part #3

More Information about Steemit, Steem Blockchain and the technical details which make Steem Staking possible

What is Steemit?

Steemit
Steemit is a social media application, like Facebook, Instagram, YouTube, and Reddit, but on Steemit both content creators and those who like their content to make money off likes, which are called upvotes on Steemit. Additiinally, on Steemit all those different types of content are together in one place. Lastly, Steemit is part of the Internet Revolution called cryptocurrency and the blockchain which allows commerce and banking across borders at the speed of text messaging. It’s this last part, which includes a new financial opportunity where finance meets technology and is call Fin-Tech. Part of Fin-Tech is called Decentralized Finance or DeFi for short.

No transaction fees payable in another token like gas fees.
This smart contract doesn’t require that you buy and pay an additional cryptocurrency to perform transactions. So you don’t have to pay gas fees like on the Ethereum blockchain.

No exercise or liquidation risk.
Because there are no collateralization ratios or loan limits like other on other decentralized finance applications. You never have to worry about your contract bring exercised or your capitol bring liquidated due to short term market fluctuations. This fear of the loss of the capitol investment is common for investors in other decentralized platforms, but not Steemit. When you invest with Steem Staking you don’t need to worry about short term volatility and price fluctuations. Your account won’t be liquidated, so you can relax, you passively collect weekly interest payments and also benefit from longterm appreciation of the chief token Steem.

Steem Blockchain Features which make Staking Possible
The Steem blockchain has three tokens. This is the description from the Steem White paper. First, there’s Steem​ ​(STEEM). Steem is the fundamental unit of account on the Steem blockchain. All other tokens derive their value from the value of STEEM. STEEM is a liquid currency, and therefore can be bought or sold on exchanges,​ ​as​ ​well​ ​as​ ​transferred​ ​to​ ​other​ ​users​ ​as​ ​a​ ​form​ ​of​ ​payment. Second, there’s Steem​ ​Power​ ​(SP) Changing STEEM to Steem Power is referred to as “powering up”, while transferring from Steem Power to STEEM is referred to as “powering down.” Steem Power that is powered down is returned to the user over a period of weeks,​ ​via​ ​4 equal​ ​weekly​ ​payments,​ ​starting​ ​one​ ​week​ ​after​ ​the​ ​power​ ​down​ ​is​ ​initiated. Third, there’s Steem​ ​Backed Dollars​ ​ or SBD. Steem Backed Dollars are worth one dollars worth of Steem and are the Stablecoin for the Steem blockchain. These currencies are related to each other via two smart contracts.

Steem Blockchain allows delegation and delegation allows you to Stake your tokens without them leaving your wallet
When you “Power-Up” your Steem, you change or transform Steem the cryptocurrency into “SteemPower” the unit of influence or value awardment on the Steemit platform. Then you loan Steem Power to other people or businesses on the Steem blockchain, through a loan process called Delegation. Only those who own SteemPower can delegate or loan Steem Power to others, who use it primarily to generate curation awards and share those awards with the owners of the SteemPower. Thus the owners of Steem Power can earn income passively.

The Safety of Steem Staking Project
I have loaned people money before and it is always risky because once you give someone your money you are now depending on their honesty to return your money ey if things don’t turn out right. You feel vulnerability, but with Steem Staking you never feel vulnerable because your money never leaves your possession. Because with Steem Staking your Steem never leaves your wallet.Your capitol is never at risk from this investment.

Steem-Staking is a creation of @shortsegments who has been on the Steemit platform 2.5 years and @shortsegments Reputation score is 76.5 out of 80. One of the highest on the platform. But because of the smart contract your Steem is safe regardless of @shortsegments reputation.

@shortsegments

Guest Question

Not sure about investing and have a question?
Sign in as a guest and ask a question.

To sign in as a guest3 hit reply below, then use the user name and the posting password to sign in and ask your question.

1. Click reply
2. type guest3 in username
3. copy and paste this: 5KkNyQgpMsRWERkFdAZpvj62mmNkuCACr3dZXdbujRhHXykoXJ1 as the password.

1. Sign IN.
2. Type your question in the box and click post.

Reprint and Rewrite of Steem Staking: A safe, passive, decentralized finance, investment on Steemit! with permission of @shortsegments