http://i.imgur.com/vGxNHoQ.png ##

Steemit white paper summarized and condensed into 3 pages! I know the steemit white paper is long about 44 page's which mean's a lot of people don't have the time to read the hole thing. In order to help those people, and at the same time giving myself a better understanding of the white paper I went through all 44 page's and tried to summarize a condensed the paper as much as I could while still trying to keep all the most important information intact . This definitely will not give you the same level of information as reading the whole white paper but it definitely will give you a general understanding and feel for the white paper. I summarized the material in the same order in which the information is laid out in the white paper even using many of the headers that are found in the white paper. I hope that people find this helpful. Thanks! ##

Abstract Steemit is a social media platform which incorporates new blocking technology to enable content producers to be rewarded in a subjective and transparent way. Traditional social media platforms produce billions of dollars for shareholders while often times content producers see little to none of that money. The platform seeks to incorporate three principles into the platform First, being everybody who contributes to a venture deserves some part of the rewards. Second, all forms of capital are important whether it is time or money Third, the community produces goods and services for its members instead of outside parties ##

Services for members. The Steem community provides the following services to its members 1-A source of curated news and commentary. 2-A means to get high quality answers to personalized questions. 3-A stable cryptocurrency pegged to the U.S. dollar. 4-Free payments. 5-Jobs providing above services to other members. ##

Recognizing Contribution One of the major obstacles for rewarding contributions is establishing a fair and equitable system to reward content producers and curators. A major component to Steemit is that rewards are not given out on a one person one vote system and but rather on the basis of the more steem a person has the more influence that persons vote has. There’s been many attempts in the past for websites to produce systems where readers pay authors directly via micro-payments or the like. These attempts have been largely unsuccessful. Steamit seeks to change these market dynamics and make it not a question of should I pay but who should I pay for content consumers by techniques that will be expended on later in the article. ##

Ways to Contribute ##

Capital contributions There are three main crypto currency tokens on the steaming system ##

1 steam Steam is the main currency that can be turned into the two other currencies. It has a high inflation rate which incentivizes people to transfer their steam into one of the two other crypto currencies ##

2 Steam power Steam power could be thought of like equity in a stock. It is a long-term interest in the platform and can only be liquidated through a two-year process of a 104 weekly payments. Steam power is what gives accounts their up voting power, the more steam power an account has the more an up vote by that account is worth. ##

3 Steam dollars Steam dollars is a token which is always worth about a dollar worth of steam. Accounts that have steam dollars can earn interest on them, they can be thought of of like a bond which bears interest but Does not carry the upside potential that Steam or Steem power does if the platform appreciates. Steam dollars can be bought and sold anytime ##

liquidity Traders who provide liquidity to the block trade market can also receive rewards ##

Subjective contributions Bitcoin derives it's value from computers competing to solve complex mathematical problems, a process that add's little value to society. Steemit derives its value from users competing with each other for stakeholders subjective opinion to up vote it. Essentially, money is being auctioned off to the people who bid the best work for it. In theory stakeholders are speculating by up voting work that they think will bring the most value to the community. Likewise in theory similar psychological principles applied to downvoting where stakeholders will down vote content they think will bring the least value to the platform. ##

Payouts Payouts are not payed till 24 hours after voting to make sure there is time for the content to be down voted as well as up voeted. Payouts are calculated based on the power of the sum of all the up votes a post receives rather then just the sum. Ideally this incentivize people to cooperate and vote for each other's post's then just to vote for one self, a element that mirrors the network effect. ##

Payout distribution Each year 10% of the market capitalization is paid to producers and curators of work ##

Consensus Algorithm In the world of cryptocurrencies, the public record is commonly referred to as a blockchain. A block is a group of signed transactions. With Steem, block production is done in rounds. Each round 21 witnesses are selected to create and sign blocks of transactions. ##

Mining in Steem Stakeholder vote for witnesses who produce blocks.Those who are not voted in can still Earn a chance to produce blocks by competing to solve computational problems. Miner's that solve a computational problem the Fastest wins the right to be a witness and produce blocks for a period of time and receive steam. Mining rewards are payed only in steem power so miners must wait at least two years before receiving their full rewards. Ultimately this means that the proceeds of mining are less likely to be dumped on the market because they will accrue to long-term believers in the platform. ##

Eliminating Transaction Fees ##

The Problem With Fees While transaction fees solves the spam problem, it introduces new problem. Users must expend energy to decide whether to spend or not spend and this is often a turnoff for users. Additionally Fees are a Barrier to Entry for new users. ##

Full Reserve vs Fractional Reserve (aka processing cost system) Instead of useing micro-payments like the bitcoin system does when users send and receive funds in Steemit it's free. The caveat being that the ownermust hold Steem to be able to use the network. Steam it uses a system where all users can use bandwidth for free until their proportional use of bandwidth outpaces the networks. From there that user transactions are delayed until their moving average bandwidth use falls below the networks average. The ideal is having users maintaining a minimum balance is effectively the same as making users pay transaction fees' with the interest they could have earned on their balance being equivalent to fee's ##

Performance and Scalability Steam network is built upon the graphene, the same technology used to power bit shares. Graphene has publicy demonstrated sustaining over 1000 transactions per second. Using this technology steemit can right off the bat support the user base larger than reddit. ##

Allocation & Supply The Steem network starts with a currency supply of O and allocates STEEM via proof of work at a rate of approximately 40 STEEM per minute to miners, with an additional 40 STEEM per minute being created to seed the content and curation reward pools for a total of 80 STEEM per minute ##

Types of Rewards Curation rewards: 1 STEEM per block or 3.875% per year, whichever is greater. Content Creation rewards: 1 STEEM per block or 3.875% per year, whichever is greater. Block production rewards: 1 STEEM per block or 0.750% per year, whichever is greater. POW inclusion rewards before block 864,000: 1 STEEM per block awarded as 21 STEEM per round POW inclusion rewards after block 864,000: 0.0476 STEEM per block (awarded as 1 STEEM per round) or 0.750% per year, whichever is greater. - Liquidity rewards: 1 STEEM per block (awarded as 1200 STEEM per hour) or 0.750% per year, whichever is greater. ##

Distribution of Rewards 10% for the Contribution Incentives with constant annualized growth rate of 1OO% for the combined effect of the Contribution Incentives and the Power Incentives. The overall effect is a doubling of the Steem supply each year but, as detailed in the next section, if most users Power Up then much of this doubling is effectively a "split" which does not transfer ownership. ##

Impact of Token Creation Rate Steem grows by hundred percent per year, but 90% of that is redistributed to the holders of steem power effectively making the true inflation rate only 10%. The ideal behind this is that by doing this steem will not have to charge negative interest rates, a action that would have a similar effect. Useing inflation instead of charging negative interest rates make's it easier for outside exchanges to hold account's in steemit deposits. The total rate of expenditures used to reward contributors is about 10% of the market capitalization per year, a rate well below what Bitcoin sustained for the first 7 years after it launched. In order to compensate for the ever increasing precision, the STEEM network performs a 10:1 "reverse split" every 32,000,000 blocks about 3 years ##

The Power of Steem Steem recognizes that the value of all user contributions (posts and votes) is greater than the sum of the parts. A single comment is worth next to nothing, but millions ##

No Micropayments! Entrepreneurs have been so focused on who should pay that they missed the obvious reality everyone benefits from everyone's actions so everyone should pay or no one should pay, depending on how you look at it. Steem bypasses micropayments completely because when a user upvotes a post it is the community that pays. The same amount of money will be spent whether the user upvotes a post or not and the funds will not come from the voter. ##

Censorship Individual websites such as steemit.com may censor content on their particular site, but content published on the blockchain is inherently broadcast traffic and mirrors all around the world may continue to make it available. ##

Replacing Advertising Replacing Advertising with Blockchain-based Content Rewards Under most content monetization models, content creators leverage advertising in one form or another. Many creators recognize how advertising may diminish their work's value to the consumer, yet creators very often must seek returns on their time by monetizing. Advertising represents a double-edged sword With ads, a creator can make money most easily. Without ads, monetization is difficult but the content is richer ##

Conclusion Steemit is an experiment designed to address challenges in the cryptocurrency and social media industries by combining the best aspects from both. Steem presents earning opportunities to content creators and internet readers in ways that have not existed within.