This is the first in a series of articles that analyse 5 comparable social media, blogging and user-generated news platforms that (with the exception of Reddit) claim to be “decentralised” to one degree or the other; Steemit, Hive, Reddit, Medium and Decentr.
On the surface, Steemit boasts many features and concepts that are in many ways similar to some of Decentr’s features; however, dig a little deeper and they are two very different paradigms indeed.
The main difference between Decentr and Steemit is that Steemit is a decentralised application (Dapp) that uses a centralised revenue/payments model whereas Decentr is a decentralised Web browser and platform that uses a decentralised revenue/economic model to reward users.
This means that on a foundational level the goals of Steemit’s decentralised publishing model are contradicted by its centralised payments model, whereas Decentr’s publishing goals are consistent with and supported by our decentralised revenue/economic model that rewards users.
Let’s break this down further, comparing the two systems; Steemit and Decentr:
1. PAYMENTS
Steemit: The Steemit blockchain uses Steemit’s cryptocurrency, STEEM, to reward Steemit users for their content. The payout on these posts is determined by users who vote on posts and comments. Users can also earn what are called “Curation Rewards”, which are distributed for finding and upvoting content that subsequently then continues to get upvoted down the line by other users.
Why This is a Problem
The Steemit platform operates a centralised revenue model, with part proceeds going to content creators and curators respectively. This by default sets up a system whereby “better” content contributors (or those contributors who got in early, called “whales”) will invariably carry greater “voting” influence. As a result, due to their ability to manipulate the system they get paid more than casual, or less popular contributors (called “minnows”).
So-called “minnows” may lack the skills (or voting power!) to compete, or may simply write about “less popular” niche subjects and not want to play the upvoting game, meaning any theoretical pretence Steemit has as regards fair and equitable publishing practices is not upheld in practice.
Decentr: By contrast, Decentr rewards users though a rise in their “Personal Data Value” (PDV), which is a personalised exchange rate between currencies that can be applied across our dFintech features (including dPay and dLoans) to economically benefit users in many ways.
PDV is in part based on the generation, exchange and reuse of increasingly refined data. In terms of our social media, blogging and user-generated news features this means that users who post and dpost articles that find engagement with targeted communities, and are further shared, “Liked”, updated and dposted will see a significant rise in PDV.
PDV is not dependent on any third-party third-party adjudication, voting, etc to determine “value”: the assigning of economic value to PDV is a 100% decentralised function based on our co-operative game-theory protocols.
Why Decentr is the Solution
With our data-as-value paradigm in place, the bottom line is that PDV creates a level playing field for content creators. The so-called “best” writers don’t “rise to the top” and “earn more” on Decentr (nor do the “best” fine artists, musicians, performers, etc) due to vote rigging or unequal economic advantage, etc; such concepts as “whales” and “minnows” do not exist in a decentralised, user-centric content creation model. This is because consistent posting and engagement by any user in their chosen area of interest can through community consensus gain equitable value — regardless of whether the subject being written about is currently “popular” (in a commercial or mainstream sense) or destined to remain niche, which is fine as well.
2. CRYPTOCURRENCY (DEC/STEEM)
STEEM: Steemit’s eponymous cryptocurrency, STEEM, is an unusual crypto in that it has no upper limit as regards the printing of new coins: new STEEM is minted every day, at a rate of about 9.5% per year, by its delegated proof-of-stake network. Content creators and curators are paid from a “reward pool” that consists of this ongoing printing of STEEM money.
As regards the economics side of STEEM, it is worth noting the obvious: because STEEM is inflationary this means that demand must stay high for it to maintain its value. STEEM manages to maintain demand by allowing new money into the system: STEEM achieves this as the coin can be bought and sold through a range of third-party exchanges. Of course, this also means it isn’t immune to the volatility associated with other cryptocurrencies.
DEC: By contrast, Decentr’s eponymous cryptocurrency, DEC, underpins data-as-value and hence has great utility as the sole exchange gateway, via our dEX, between data-into-fiat and fiat-into-data. DEC — by way of analogy with Bitcoin’s Proof-of-Work (PoW) protocols — goes up as a result of our Proof-of-Engagement (PoE) protocols at around 8–10x aggregate PDV.
As the value of DEC is supported by the creation of data value in the form of aggregate PDV, the Decentr platform is an incredibly stable environment for writers and other creatives to connect and socialise, and derive value from their contributions in a 100% fair and egalitarian manner, free from all third-party controls as regards what is published, where and how, and what value is attached to these contributions.
3. CONCLUSION
On Decentr, those writers who through their inspiring words and unique ideas evoke the passion and commitment of their respective communities will always come out ahead. This is because Decentr promotes an environment free of subjective, centralised controls that demand creativity is shaped to the wishes and agendas of an elite minority that unfairly influences the platform’s direction and output for their own economic gain.
On Decentr, individual creativity really is king!
Follow now to be the first to read the second article in this series: “Hive vs Decentr”.
We look forward to answering all your questions. Please find our official links below.
Official Links for Decentr:
Official Email Address: Admin@decentr.net
Official Website Link: https://decentr.net/
Official Telegram Discussion Group: https://t.me/DecentrNet
Official Telegram Announcements Channel: https://t.me/DecentrAnnouncements
Official Twitter: https://twitter.com/DecentrNet
Official Medium: https://medium.com/@DecentrNet
