Welcome to our inaugural series of “Immutable”, a publication focused on exploring blockchain technology by learning about the startups building it.

In this series, we’ll pick up our first concepts by studying social media startups in the blockchain ecosystem. Social media platforms are an ideal starting point for this space for a few reasons.

Social media products are approachable and familiar. There are few areas of the web that haven’t seen the influence of social networks in their many forms. This wide adoption provides us with a lens to pick up essential topics like Network Effects and Critical Mass more easily. For those who haven’t read our Mental Models on these two subjects, a Network Effect occurs when you have a resource that gains in value as more people use it.

Any blockchain startup building a social media platform has to compete against the Network Effects of their competition by introducing their own. This provides a bridge between the two worlds. We can start off by comparing how each platform holds up to the other. Once we have this foundation, we can explore the new ideas that blockchain technology brings to the table.

A defining pillar of blockchain tech is the introduction of a new financial form of Network Effect into the world of software. By adding a cryptocurrency at the center of the platform, a second layer of Network Effect forms. This second layer adds an economic incentive to help grow the platform that didn’t exist before.

We’ll explore the potential of this additional economic incentive by learning about SteemIt. SteemIt is a web publishing platform that rewards creators and curators on their platform with a cryptocurrency.

SteemIt’s users often compare the platform to Reddit and Medium, and these influences are clear. SteemIt borrows the up and down-voting mechanism of Reddit, as well as Reddit’s focus on content curation. The minimalist design and focus on written content puts SteemIt in direct competition with Medium’s platform.

This two front-war for users allows us to examine SteemIt through a cross-section. We’ll keep in mind two questions:

“Is SteemIt succeeding or failing at building a competitive publishing platform?”

And if they are failing at that…

“Are the financial Network Effects granted by a blockchain approach to social media strong enough to overcome the Network Effects of existing social media networks?”

The Players

With these questions in mind, let’s meet the main players in this series.

• SteemIt: a blogging and social network with a blockchain-based rewards platform for its publishers.
• Reddit: a network for aggregating social news, rating web content, and hosting community discussions
• Medium: a social journalism platform for hosting and sharing amateur and professional written content

It isn’t important that your familiar with all of these platforms before we begin; I’ll go over each throughout this series. It is important, though, to study the competition before diving into SteemIt directly. As I lay out in Immutable’s thesis post, the best way to expand your understanding of blockchain technology is be rooting it in concepts you already understand.

The Release Schedule

We’ll be releasing new content on a weekly basis throughout July.

Starting off on July 9th, we’ll meet the competition: Medium and Reddit. What value are they providing to their users? What are the defining features of their platform? How have Network Effects played a role in their dominant position in the social media food chain? With answers to these questions in mind, we’ll move onto SteemIt.

On July 16th, we’ll explore how SteemIt’s value proposition and how it is differentiating itself from its competitors. Who is building this platform — and who are its early adopters? How does SteemIt’s product pay homage to its predecessors? What changes are they making to the fabric of social media products by introducing blockchain tech?

With the focus of the company and product understood, on July 23rd, we’ll be ready to dive into the blockchain technology being produced. How does their platform payout to content creators? How do SteemIt’s cryptocurrencies — Steem and Steem Dollars — work together with Steem Power? Is this three-legged structure necessary and are the incentives brought to the table strong enough to create a new financial Network Effect to grow the platform?

I’ll close this series on July 30th with a prediction of SteemIt’s future. We’ll take what we’ve learned about their position in the market and reexamine my central question posed in this article:

Are SteemIt’s financial Network Effects granted by their blockchain approach strong enough to overcome their competition? How does their approach to blockchain tech help or hurt them? I’ll help shed light on these questions with data pulled directly from SteemIt’s blockchain. We’ll walk through this data and what it could imply for the platform’s future, and I’ll offer my own thoughts on how the platform could be improved.

Any particular companies or sectors that you’re curious to explore, or have thoughts you want covered in this series? Comment below or send a tweet my way, @TOBtheCreator, and I’ll add it to our list!