Hello, I just like to give you a little explanation into how steam it works. So let's start with a definition. What is steam it steam it.com is a social media and blogging platform that pays users for posting content. Now I've been trying to explain this to many people, it is actually quite difficult to explain. And the question that people most often ask is, how does it do that? How does it work?

How does it pay you? Where does the money come from? To answer that we have to explain a revolutionary new technology called the blockchain. If you haven't heard of blockchain technology yet, then I can guarantee you will hear of it many times in the months and years to come. blockchain technology is the technology that underpins Bitcoin. Now, if you've heard of Bitcoin, You will know, it's the world's first cryptocurrency invented in 2008.

During the world's financial crisis, and coming into use in 2009, every year since then its use has been more and more widespread, and it has worked. More importantly, the blockchain has worked as a fantastic system of storing value and validating exchanges. But what is the blockchain? What is this technology? Well, here is a definition from Donna and Alex Tapscott authors of a fantastic book called the blockchain revolution. They define blockchain as an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions, but virtually everything of value.

Another way of explaining it is just as a constantly expanding database that has various verified copies housed on multiple machines around the world. And this database can store value transactions, who owns what value and just about anything. And these units of value can be programmed just like any other computer program to do various things. But as I said, it's distributed think like cloud computing or peer to peer computing. So there's various copies of this ledger is blockchain all around the world on different computers. This means it's distributed, it's not centralized.

So no third party or centralized authority is necessary to validate anything on the blockchain. So this is very useful and revolutionary, as you can see with just Bitcoin For example, the currency, no third party is needed to get involved in transactions. This means no banks, no governments, no exchanges are used to transfer Bitcoin from one person to another or from one business to another. This means no bank fees, no exchange fees, no central banks, no uncertainty over the government interfering with the money supply or anything else like that. So how does this apply to steam it this social media and blogging platform? Well, similarly, this is the way that steam it is not centralized.

It doesn't have an authority. So it's peer to peer. There's no Facebook, Instagram or YouTube or authority, deciding over what goes where what you can see and what you can't see and various other things. Now of course, there are rules on steam it you're not allowed to post anything illegal. For example, and there will be some sort of authority to police what happens on steam it to make sure there's no spam as well. And the people who do this are the users the community in steam it.

And of course, the people with the most power on steam it are the ones that have the most authority, the users who have been there for the longest period of time, or who have interacted and posted with the Simic community a lot. So there is still centralized authority if you like, but it's just not in the same way as you have with Facebook, Instagram and all the other social media platforms. But of course there's more importance about this decentralized nature of the platform, because there's no ads, no selling of your personal information, and no censorship. The protocol that runs steam, it is called the steam blockchain protocol. Now steam is the currency steam. It is the platform, the steam blockchain protocol, in addition to be able to store value, just like the Bitcoin protocol can also store content.

And it rewards you for creating content, curating content, and even commenting on the platform steam it with its own cryptocurrency, which is called steam, but I'm still not explaining to you where the money comes from. Because there are no ads. Do other people pay you do other users pay you? That's one question, I'm guessing. No, that's not how it necessarily happens. The steam protocol, just like the Bitcoin protocol, creates money out of thin air.

Now I know that sounds scammy or strange, and that's fair enough. However, in this way, there is actually no difference between the steam cryptocurrency or the Bitcoin cryptocurrency. And any other currency like the US dollar. As you may know, the US dollar was decoupled from gold in 1971, by then President Richard Nixon. And since then, there has been a system of national fiat currencies used around the world, not just with the dollar, but with most other national currencies, and they are described as fit or the arts. The word fit fit comes from the Latin, meaning let it become so the cost of producing any denomination whether it's $100 bill or anything like that is negligible, and it's nothing like the value of the hundred dollar bill.

So, all money is basically created out of thin air. However people believe in a currencies value. So a US dollar is worth what it is. So people prescribed monetary value to it. Precious metals, stones, beads shells. That's what they've been using in the past human beings have been using money since before they started writing history books.

And it's the same with cryptocurrencies. So this is a website called coin market cap and you can go there and you can see the value of every cryptocurrency there is the top there, you'll see one bitcoin is at the moment worth $2,820 and a bit more. So the value of these cryptocurrencies is really down to how much people believe in them the same as the value of $1 and how much they are prepared to pay for them. So people will buy bitcoin with dollars and the price is determined by supply and demand. And here we have all other cryptocurrencies like it cerium ripple Bitcoin cash, which didn't even exist for days ago, I'm making this video on the fourth of August 2017. If you look at this website, again, at whatever date you are listening to this video, you'll see all these prices will be different course.

And if we scroll down to the 20th biggest cryptocurrency in terms of market cap, we will see steam there as a value of one steam token is a value of $1 28. Remember, all cryptocurrencies are incredibly volatile, their value goes up and down. I'm not giving you any investment advice. I'm not telling you to buy steam. You don't need to purchase anything to get on the steam platform and earn money on the steam platform. So I hope that does explain a bit about blockchain technology, and steam and steam it and how the platform works.

Now, let's get going. Find out how we can use the platform to blog, make useful relationships and earn rewards online. My name is Rob coven. I'll see you in another video.