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Is there any mechanism built into the steemit blockchain to keep it fom becoming unprofitable for witnesses to run servers if the Steem price were to plunge.?
Is there any mechanism built into the steemit blockchain to keep it fom becoming unprofitable for witnesses to run servers if the Steem price were to plunge to a point where renting a server would cost you more than just buying steem at current price with the money you would spent on the server. I guess it also depends on how many people vote for your witness, but let's say you are on of the top ten witnesses. Hope my question makes sense?

Nope, there is no such mechanism available. 

Also, many users will most likely continue to host their nodes even if it becomes unprofitable. In order to make the nodes unprofitable, steem would have to dump down really really low. If something of that sort happened, there would probably be very little users active on the platform itself.

The users who are consuming content in the Steem platform bring value to it. In order for steem to plunge down below 10 cents again, these users would have to either become anti Steem or leave it altogether. 

This is a highly unlikely situation. But of course this is possible. We don't know what will happen in the future. But if Steem went down that low, then Steem itself will be most likely abandoned before witnesses start to shut down their nodes.

Personally, I don't believe such plunge could happen in the foreseeable future. Maybe Steem could dump to 30 - 40 cents and again jump back up but I don't think it's going to go lower than that.

The top 21 nodes make a lot more money than other nodes. They won't become unprofitable easily.


I would argue that one of the things that prevents such a dramatic plunge in the first place is the 13 week power down period. Even if there was a panic nobody with steem in their steemit wallet can quickly cash out. This helps to mitigate emotional and rash trading of steem that would otherwise only make the price go down further.


I'm no witness but I think this is where the BIAS comes in on the witness settings. As what I know, they can increase/decrease the production of SBD using that setting at the cost of less Steem. 

The cool thing about the Steem blockchain is that internally SBD is always treated as $1. There is actually a hidden mechanism in place in which you convert your SBD as $1 even if the price of SBD on the market falls way below $1. At the moment you can only do this by code or using this tool: https://mwfiae.github.io/SbdConverter/

Well I've written an article about this months ago to which you can read here: https://steemit.com/steempress/@jlordc/howtoconvertsbdtosteemataflatrateof1-3ssckau9ra

The point is that witnesses have the ability to control the production of liquid SBD which in turn can act as a measure when the price of Steem drops down.


Not that I know of. Recently it was a talking point that you had to be in the top 50 or so witnesses to cover your costs and to turn a profit.

The witnesses seek delegation to help them run a profitable server and some have to pay in to keep it going. this won't be an issue in the future when The Sreem price rises.


What Is Steemit And The Steem Blockchain (Ultimate Guide)

July 16, 2018 by Alvin Lau

Steemit is an internet based life cum blogging kind of stage that is facilitated on the Steem blockchain. Does blockchain sound outsider to you?

In the event that it does, at that point this is what a blockchain freely is. Think about an open record that is accessible to everybody on the web. Everybody can see the majority of the exchanges that goes ahead inside the general population record. Nobody can alter or erase an exchange without it being recorded.

That is basically what blockchain innovation is about. It advances straightforwardness and not in any case the legislatures can control it, except if they cut down the whole blockchain, which implies they need to boycott hypothetically all PCs.

Blockchain innovation is kept alive by PCs, particularly witnesses who are utilizing their PCs as servers. What are observers? It will be clarified later in this article.

What you need to know is that the majority of the information on the Steem blockchain is hypothetically changeless and can't be blue-penciled. In spite of the fact that you can alter information before the expiry of 7 days from the time the information is posted, you do need to be watchful with what you compose.

So for what reason would individuals like to utilize Steemit on the off chance that you can't evacuate information following 7 days?

There might be 2 principle reasons, the main being you can acquire Steem which has an incentive in the market and furthermore, you would prefer not to be edited.

The principal reason is likely the most mainstream one. Many substance makers who battle on different stages like YouTube, Twitch, Facebook and WordPress tend to join Steemit because of potential profit.


Today online applications package UI, code and information. Facebook, for example, is best known for its site and application, however both are only the tip of a virtual ice sheet: the vast majority of the product and all the data that prop the informal organization up lives in the association's cloud. Controlling those information gives these organizations control. Clients are allowed to move to another administration, yet they would lose everything that data, including the connections to their companions. By complexity, in the new universe of Web 3.0 (or Web 3, for the really started), interface, code and information are intended to be kept independent. This would enable capacity to stream back to clients, who could choose which application can get to their data. On the off chance that they were not content with one interpersonal organization, they could without much of a stretch change to another. With such decentralized applications, or "dapps", clients could likewise interface specifically with different clients without a data storing delegate in the center.

Certainly, comparative thoughts have been attempted previously—and fizzled. Decentralized administrations, at that point called "distributed", quickly prospered in the late 1990s and mid 2000s. They failed out predominantly in light of the fact that nobody knew how to fabricate a vigorous decentralized database. That changed in 2009 with the creation of Bitcoin and the blockchain, the innovation that underlies the digital currency. Generally, it is a record without an incorporated manager, kept up by and large by a portion of its clients, called "diggers", who additionally ensure the blockchain and hold each other under tight restraints.

In spite of the fact that nowadays Bitcoin is for the most part used to theorize, the digital money can be viewed as a dapp. The blockchain is a specific database as an unchanging record of the exchange history of each bitcoin available for use, which clarifies who claims what. Holders of the cash utilize a bit of programming called a "wallet", basically a program for the blockchain that conveys the important cryptographic keys, to monitor their benefits and exchange cash.

All Web 3.0 activities obtain vigorously from Bitcoin and Ethereum, another blockchain that accompanies "savvy contracts", scraps of code that typify business rules which are executed naturally if certain occasions happen. The most developed tasks center around building the product framework required for dapps. Blockstack, ostensibly the most aspiring, is best observed as a working framework for such applications.

Another field of much undertaking is decentralized advanced capacity. One such exertion is Solid, a venture driven by Sir Tim, which highlights singular "information units" where individuals keep their data (however it doesn't utilize blockchain innovation). Another is the InterPlanetary File System (IPFS), the brainchild of Juan Benet, a prime supporter of Protocol Labs, a startup.

Real dapps are as yet rare. Graphite, which keeps running on Blockstack, is a heap of online word-processor and other office applications, much like Google's G-Suite. OpenBazaar, which depends on IPFS, is an option in contrast to Amazon. There is no focal server to list what is on offer and to process exchanges; rather, purchasers and venders download programming that can settle things straightforwardly between them. The most mainstream dapp so far is a diversion called CryptoKitties, a commercial center for advanced pets that lives on the Ethereum blockchain.

Building the correct instruments and applications will require some serious energy, yet it isn't the hardest piece of decentralization. A lot of institutional development is additionally required. On the off chance that blockchains are to oversee without focal chairmen, others should deal with the assignment. These could be excavators, yet additionally engineers and administrators of "hubs", PCs that keep duplicates of the blockchain. Web 3.0 undertakings are frequently similar to smaller than usual economies, with a money and an administration framework. What's more, venture pioneers, however frequently of a libertarian bowed, must choose the option to end up controllers.

Past endeavors at decentralization additionally foundered in light of the fact that the financial matters demonstrated needing, including those of the first web. Truly, most conventions were produced by scientists and after that kept up by non-benefit associations. In any case, when the web went standard and the cash poured in, things got more perplexing. Business intrigues made discovering agreement more troublesome, and designers liked to join quickly developing web organizations building applications. Moreover, motivating forces to embrace new conventions were deficient. So they turned into the poor connection of the web, while applications flourished, clarified Mr Monegro, the financial speculator, in a persuasive blog entry, "Fat Protocols", in 2016. With Web 3.0, he says, it will be the other route round.

Once more, Bitcoin pointed the way. Satoshi Nakamoto, its tricky innovator, additionally outlined what is presently called a "crypto-monetary model". Mineworkers are guaranteed a fiscal reward for their calculating work. Points of interest aside, at regular intervals they take an interest in a lottery. The victor gets the privilege to refresh the blockchain and few bitcoin. The reward gets paid out simply after twelve more lottery rounds, so it is in the victor's enthusiasm to keep the framework ticking.

Many Web 3.0 undertakings have built up their very own crypto-monetary models. The thought is to supplant a brought together firm with a decentralized association, held together by impetuses made by a token—a sort of "crypto-co-agent". Every one of those included, including the clients, are intended to have an individual stake in the undertaking and get a lot of the esteem made by a convention.


A few models are simply expected to make a flourishing commercial center, which on account of CryptoKitties implies you can purchase, offer and breed them for fiscal prizes. Different activities are more goal-oriented. Filecoin, as well, is intended to be a commercial center where computerized storage room will be traded for an eponymous advanced token. To keep it streaming, the task, likewise established by Protocol Labs, has turned to much financial designing. A convoluted system matches free market activity.

The most detailed working crypto-financial model, in any case, is Steemit, an online gathering which compensates its 1m or so enlisted clients for posting commitments or rating content with genuine cash as steem, another kind of token. One compose is fluid and can be gotten the money for out utilizing a trade, or, in other words give close moment delight and draw in clients. The other, called "steem control", is less effectively convertible and expected to keep individuals connected with: the more they possess, the more weight their votes have.

On the off chance that this sounds muddled, the local laws of these crypto-co-agents can be significantly more so. Afresh, Bitcoin is a decent place to begin, in spite of the fact that for this situation for instance of how not to do it. At the point when the puzzling Mr Nakamoto vanished in late 2010, he didn't abandon any administration system to discuss. Just a simple one has been set up since. Bitcoin designers consent to changes to the framework's product, which excavators at that point actualize in what adds up to a vote by processing power. Be that as it may, lately the two gatherings have been at loggerheads over how best to expand Bitcoin's ability. Accordingly, a few groups have just made their own rendition of the money. Ethereum is currently running into comparative issues.

To keep away from such challenges, some more up to date blockchain ventures are intending to hardcode their basic leadership forms into the product as brilliant contracts, a technique known as "on-chain administration". Tezos, for example, considers itself a "self-changing record". It enables anybody to propose changes which are then casted a ballot on. Victors get a few tokens as a reward. Polkadot, as far as it matters for its, is intending to compose a "constitution" into its "beginning square", the grapple for each appropriated record. Token-holders will have the capacity to cast a ballot on changes to the framework. In any case, there will likewise be an "established court" which can abrogate choices.

Web 3.0 tasks need to tackle various down to earth issues before they can really take off. Bitcoin, once more, represents the obstacles. Boss among them is the thing that crypto-buffs call "adaptability", implying that blockchains are right now not ready to manage huge quantities of clients. Bitcoin's ability is higher than it was, yet the greatest is still around ten exchanges for each second, contrasted and the thousands that a brought together installment framework can deal with. More up to date blockchains improve the situation, however are far-fetched ever to beat unified databases.

In addition, numerous blockchain ventures are themselves very concentrated. All bitcoin mining occurs in China and is controlled by a couple of firms (despite the fact that the legislature is currently attempting to oblige the vitality hungry industry). What's more, token possession is frequently focused, as well. Steemit, the online gathering, is an extraordinary precedent: 90% of the "steem control" tokens are held by 2% of clients, however the firm is attempting to change this.

"Blockchain is a ten-year-old innovation. In any case, where are every one of the applications?" asks Tim O'Reilly, who pushed distributed and begat the expression "Web 2.0" Still, he doesn't preclude a sudden leap forward that may cut the "blockchain's Gordian bunch" and make such records more adaptable, for example. Indeed, even Facebook appears to see that as a probability: a month ago it made a blockchain unit. It is additionally said to be occupied with assuming control one of the blockchain projects.If such an achievement were to occur, effective dapps may come in new shapes. "It is less demanding for new innovation standards to win in new territories than to re-battle old fights," says Chris Dixon of Andreessen Horowitz, another VC firm with interests in the field. Keep in mind, Google did not prevail upon Microsoft by building up another working framework. What may be the web crawler of Web 3.0? Mr Dixon focuses to administrations that oversee information in imaginative courses, for example removing bits of knowledge from advanced data while giving purchasers and organizations a chance to keep control of their information.

Be that as it may, imagine a scenario where attempting to re-decentralize the web is a waste of time. That is what China's pioneers think.