Why Blockchain Backed Social Network Steemit Could Be The Next Evolution In Social Networking

Up until July this year, every social network on the internet has presented fundamentally the same opportunity to users, albeit packaged in different and interesting ways:

1. Users can broadcast a communication in one form or another.
2. They receive some kind of social currency in return.

The social currency varies from site to site but the common ones are:

1. The number of followers a user has.
2. The amount of likes, favourites or comments received.
3. The quality of the discussion initiated.
4. The amount of traffic that’s generated.

But July saw the launch of a new social network that represents an attempt to evolve the basic model. It’s called Steemit, and it doesn’t only reward users with social currency, it also rewards them in cryptocurrency.

For anyone unfamiliar with cryptocurrencies such as Bitcoin, this simply means that you earn a digital currency that you can then exchange into real dollars.

On Steemit, you earn money.

So, what is Steemit?

For the average user, Steemit is similar to Reddit and not a million miles away from Facebook. You submit blog-style posts and other users can comment on your posts. Users can also upvote your post if they think it should be more visible on the site.

The new and exciting element though, is that you are rewarded in ‘Steem’ (digital currency) for your posts, comments and upvotes, depending on their popularity. The Steem can then either be exchanged into real cash or reinvested into ‘Steem Power’, which is your authority and power on the site.

Here’s the other clever bit: Steem Power is also a type of share in the company, meaning each member of the community literally owns shares in the company.

Steemit CEO Ned Scott put it like this:

“The way it works is quite great for the users, where the better a post performs, the more the poster and voters earn in Steem Dollars and Power.”

Why Steemit’s Looking Strong Early On

Steemit is generating some impressive numbers already. Their user base is expanding by tens of thousands each week and the way users behave on the site is already eclipsing some of the established social networks.

In comparison to users of Pinterest, Reddit and Twitter, those on Steemit spend more time per day on the site and visit more pages. Steemit hasn’t caught up with Facebook or Google in this regard as yet, but the numbers are still rising, so we’ll have to wait and see where they settle.

On top of those impressive engagement stats, Steemit’s overall traffic is literally skyrocketing. At the time of writing, they are close to entering the top 10,000 U.S. sites by traffic and it was only two weeks ago that they broke into the top 20,000.

My 3 Week Steemit Emersion

I’ve been active on Steemit for about three weeks and I’ve found it to be very addictive—more so than any other social network—and as founder of an online startup, believe me, I’ve tried them all.

It may be surprising to hear that I’ve managed to earn over $1,000 worth of Steem in that time. I could have turned that into cash of course, but instead I chose to reinvest in Steem Power.

I’m hoping that Steemit beats the odds, navigates through the early rough seas (like the hack they endured soon after launching) and goes on to become another household name. If that happens, my $1,000 investment might grow into a much larger amount. Of course it could also fizzle into nothing, but that’s always the risk.

I’m not revealing this to gloat, but instead to show that it’s possible to make real money on Steemit, if you know where to start. So with that in mind...

Where to start:

1. Steemit are currently giving away $7 in Steem for all new users. Last week it was $10 though, so there’s no time to waste. Register.
2. Write a post to introduce yourself. Include photos, make it long and interesting. Tag it: introduceyourself - the reason for doing this is that the users who are currently holding massive Steem Power (known on the site as ‘whales’) are currently rewarding as many new users as they can with upvotes for good introduceyourself posts. A whale’s upvote can literally hand you hundreds of dollars in Steem and a lot of users are getting $10 to $1,000 just for that first post.
3. When you submit a post remember that the first image you use will be the thumbnail image for the post, so make it a good one. Using an animated GIF for that first image also really makes it stand out.
4. Search Steemit for guides on how to tell which posts the whales are interested in. By leaving thoughtful comments on those posts, you can net $10 to $400 in whale upvotes. Some Steemit users have earned thousands of dollars via comments alone.
5. Post a Steemit first. Because the site is so new, many of the posts that earn big money are simply the ones which bring something new and novel to the platform. One notable example was the first Steemit makeup tutorial that earned over $30,000. When you submit your ‘first of’ post, be sure to tag it ‘steemit’ because then the post will enter the Steemit category which gets lots of attention.
6. Hold onto your Steem Power and cross every finger that Steemit becomes the next Facebook. If that happens, you’ll get 10, 20 or perhaps even 30 times return on the dollars that you hold in Steem at this early stage.
7. This one’s for Bitcoin millionaires (or even just normal millionaires). Invest in a million dollars worth of Steem Power, post anything you like and then upvote your own post. You’ll bestow hundreds of dollars upon yourself each time, without depleting your investment one cent.

Final thoughts

Something is happening on Steemit that’s very hard to ignore. It’s a grand experiment on several levels that, if successful, could be the next evolution in social networking, currency and online sales. The scope is huge and extends far beyond the social networking platform itself, as is the case with Facebook.

As far as user experience goes, Steemit feels more like playing a game (and gambling) than using a social network. Everyone’s betting on their content to be the next big earner, or clambering to be the first to leave that one great comment.

Every social network, depending on the way they allocate social currency, rewards certain types of behaviour more than others. This effect is further emphasised on Steemit due to the actual monetary rewards bestowed. That’s not a bad thing, it’s just a different thing and, if nothing else, it makes for a fascinating experiment.

Could Steemit be the next big thing in social networking?

The potential is there, but it’s too early to tell. One thing’s for sure though—if the passion and optimism of the current user base is anything to go by, then the answer will be a resounding yes.