Analysis of Steem Blockchain Solution
Introduction
In the contemporary business environment, technological advancement is contributing to significant changes in operations and data-related aspects. Blockchain is one of the modern advanced database network that stores data in blocks that are linked together in a chain. This technology has enabled community of users to record transactions in a shared ledger within that community (Yaga et al., 2019). One of the feature of such a network is that no transaction can be altered or changed once published. This report investigates Steem blockchain solution to understand how the technology has been developed. The key focus of this report include an explanation of the business context or industry, the business problem solved by blockchain technology, the components of blockchain technology and the benefits of using Steem blockchain solution.
Context of the business of industry in which blockchain has been used
The social media industry enables users to interact with the community by sharing pictures, videos and audio files. Some of the leading social media companies such as Facebook, Instagram and YouTube provide services that enable users to interact, create and share content. According to Statista, social media use has significantly increased from approximately 2.73 billion users in 2017 to 4.59 billion users in 2022 (Statista, 2023). The increase in the use of social media portrays that a large amount of data and users’ information is stored by the companies. Social media companies such as Facebook has been accused of enabling third parties to access users’ data. For instance, Facebook was accused of extending access to user data to Amazon, which users the platform for advertising (Solon and Farivar, 2019). It is important to for social media platforms to secure and protect user data from unauthorized access.
Steam blockchain solution for decentralised social media not only aims to secure user data but also to enable users to manage and control their information. One of the social platforms operating under Steem blockchain solution is Steemit. This is a blockchain-based social media platform that supports a decentralized social media ecosystem. Besides Steemit, other social platforms that use Steem blockchain solution include D.tube, Dlive, TravelFeed and Dlike. D.tube is a blockchain social media video platform which focuses on decentralised system. TravelFeed is a sociol blog that enables creators to monetize their content whereas Dlive was first built on Steem blockchain as a social media platform focused on livestreaming. Apart from the decentralised nature of these social media platforms, another notable characteristic is that they reward users for participating on the platforms. The use of Steem blockchain solution in social media platforms has revolutionised how creators interact and share their content on the internet.
The business problem that Steem blockchain solution is solving
Steem blockchain solution aims to solve the problem of data privacy and security that has been witnessed by traditional social media platforms. Since traditional social media platforms such as TikTok, Facebook, YouTube and Instagram require users to disclose personal information to a central database, it raises the concern regarding data privacy and security. According to a report by the Guardian, TikTok was accused of massive data harvesting which can potentially put users’ data at risk (Touma, 2022). Such issues of data privacy and security can negatively affect the use of social media platforms. The problem of data privacy and security issues can be attributed to the use of a central system in managing and controlling user data.
Social media platforms that use centralized networking systems have the sole authority to control all the data of the users (Yeoung et al., 2009). In such a case, users tend to have little control over how and what information about them is presented to their friends online. For instance, social media platforms such as Facebook and Twitter provide suggestions to users by showing information of other users such as name and photos. More specifically, existing social networking platforms provide suggestions of friends and people to follow by presenting their information to other users. In a centralised networking system, users have little control of how their information is presented or suggested to other users online. This problem can be solved by implementing decentralised networking systems in social media applications.
Seem blockchain solution is a blockchain for decentralised social media, which aims to solve the problem of data privacy and security. As illustrated by Yeung et al. (2009), a decentralised setting enables users to have adequate control of their data in the respect of privacy, ownership and dissemination. Regarding privacy, users in a decentralised social media network decide who to show the information and what restriction is placed on the data. User data is stored on a trusted server; hence they will not lose their data in an event of shutdown by a service hosting the data. Another important aspect is that the data is disseminated according to the creator’s preference, which can promote a friendly interaction online.
How Steem blockchain solution works focusing on the components of blockchain
Consensus algorithm is one of the primary components of blockchain technology. It plays an important role of preventing fraud, manipulation in a decentralised networking system (Mingxiao et al., 2017). Blockchain technology uses consensus algorithm to solve the problem of double spending by verifying all transactions in distributed nodes. Steem blockchain solution uses a delegated proof-of-stake (DPoS) consensus algorithm that enables the system to effectively reward platform users. It enables of newly generated staking rewards to be sent to a reward pool that compensates users who create contents. Users of the platform are rewarded in form of Steem coin, which is one of the cryptocurrencies which can be redeemed. The company distributed rewards worth millions of dollars to its users (Wired, 2017). Steem uses the consensus algorithm to reward users who create and curate content on its decentralised social networks and decentralised applications. Besides, DPoS, Steem blockchain solution uses other systems that enable it to perform its functions effectively.
Note application is another important component of blockchain which enables decentralised systems to operate effectively. The primary role of the nodes application is to update blockchain ledger, validate transaction and ensure participation in the consensus process (Tama et al., 2017). Steem blockchain solution uses Graphene, a contemporary blockchain technology which uses witness instead of minors to produce blocks (Steem, 2023). This technology enables the Steem to reward users for creating and curating content on its platforms. With the application of state-of-the-art blockchain technology such as Graphene, Steem ensure the blocks produced on the chain are secured. The use of witness instead of miners promotes greater efficiency in block production. Since blockchain technology focuses on these blocks, effective production is critical in ensuring that the system is effective.
Benefits of using Steem blockchain solution
One of the primary benefits of using Steem blockchain solution in the social media industry is to promote data privacy and security of user data. With the establishment of a decentralised social networking system, users will have adequate control of their data, hence enabling them to determine how their information is used online. This approach is useful in reducing the problem of data privacy breaches and access to user information by unauthorised persons. The decentralised networking system implemented by Steem blockchain technology protects user data from manipulation and access by third parties.
Another important benefit of using Steem blockchain technology in the social media industry is reward to content creators. Even though traditional social media platforms make huge profits on advertising revenue, content creators do not earn relatively to these profits. Steem uses blockchain technology to reward content creators, hence encouraging users to create and share information with the community. As a result, users are encouraged to share important and useful information, which can have a positive impact on communities. Steem encourages its users to create authentic content that can attract rewards, this can prevent the spread of false information. The reward mechanism and data protection as some of the primary benefit of using Steem blockchain solution in the social media industry.
Limitations of using Steem blockchain solution
Blockchain technology uses private keys associated with each user. Once these private keys are generated, they cannot be changed. This is of the limitations of using blockchain technology in the social media industry. Notably, centralised networking social media platforms which use emails and passwords allow users to change emails and passwords. The impossibility of changing private keys in blockchain technology attributed to its limitation in the social media industry. Even though blockchain is a revolutionary technology in social media, it still faces regulatory challenges in various parts of the world. Regulatory issues that prohibit the use and application of blockchain technology can vary from one country to another.
Conclusion
In conclusion, Steem blockchain technology is a blockchain for decentralised social media platforms. This technology aims to solve the problem of data privacy and security, allowing users to have adequate control of their data. Steem blockchain technology uses a Delegated proof-of-stake (DPoS) consensus mechanism that enables the company rewards its users. Steem promoted data protection, thus solving the problem of data privacy experienced by traditional social media platforms.
References
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