Hello everyone! hope you all are good and doing well. Today I'm here to share my little knowledge about "Blockchain Steem: Debt Vs Ownership" / "Blockchain Steem: Debt Vs Property". I got some information from the reference lecture and now I'm giving my answer that I understand.

Explain indebtedness and ownership in the Steem network. Explain this concept in the centralized fiat world.

Steemit is based on Decentralized block chain where any one can get rewards by creating content. The reward we get from here is steem and Steem power and SBD. Steem is in liquid form can be transfer at any time and at any place. While Steem Power is the the investment of a user at steemit block chain. This investment is the ownership of a user. It's not that much easy to build up Steem power

If I explain indebtedness or in simple word loan, if a person wants to build Steem power can take loan of steem power from a user who has already Steem power. This Steem power borrowing is indebtedness. It means that the person who borrowed Steem Power owes something to the person who lent it to them.

At Steemit SBD are debit and Steem is ownership.

Debt /owner =debt ratio

At Steemit the debt & ownership ratio plays an important role . The change in the value of Steem can make changes in the debt-ownership relationship.

,Ownership and indebtedness work in a similar way in the centralized fiat system . For example, if a person wants to buy a car but doesn't have enough money, he might take out a loan from a bank or a car dealer . This loan is indebtedness, means they owe the bank or car dealer money.

But in exchange for the loan, the person gets ownership of the car. Ownership means they have the right to drive the car, make changes to it, and sell it on his own choice.

Debit ratio should not be higher, if debit increase than ownership then investors do not invest on that company.

This Debit ratio is applied to control the price of steem at steemit blockchain.

If the ratio (SBD Debt/Steem ownership) is high, how does it affect the Steem price?

In the Steemit network the ratio of SBD (Steem Backed Dollars) debt to Steem ownership can be an indicator of market sentiment . When this ratio is high, it means that market is at bearish, there is a lot of SBD in circulation compared to the amount of Steem that people own.

This can result in a situation where people who own SBD are trying to sell it for Steem, which can drive down the price of Steem.

On the other hand when the ratio is low, it means that there is relatively less SBD in circulation compared to Steem ownership. This can result in a situation where people who own Steem are trying to buy SBD, which can drive up the price of Steem.

The price of Steem can be influenced by the SBD debt to Steem ownership ratio . In general market sentiment, overall demand for Steem and SBD, and general market conditions can also play a vital role in determining the price of Steem.

At Steemit we are not getting rewards in SBD nowadays , the sbds are printed on following basic formula

SBD print rate = 100% × (10-debt ratio)

There will be no printout of SBD at market , if the debt ratio of SBD/Steem is high or more than 10% and SBD also not be added in post reward. But if this ratio is vise versa then SBD printout will start in the market and post-payouts as well.

Now we calculate this through the given formula: if in market debit ratio is 9.7

SBD print rate = 100% × (10-9.7)

SBD print rate = 100% × 0.3

SBD print rate = 30%

At Steemit we get SBD in our payout if we get 50% from above formula.
So, a change in SBD/Steem ratio will affect the printing of SBD and steem price in the market.

What mechanism does the Steem blockchain use to control the debt/ownership ratio?

Steemit blockchain control the debt /ownership ratio and we can calculate it by using the following formula

Current Debt to Ownership Ratio = SBD Market Cap / Steem Market Cap

For finding the debt to ownership ratio, first we calculate the Steem market cap and then SBD Market cap.

Steem Market Cap = Virtual Supply × Steem Price

In order to calculate the value of steem market cap, we find the virtual supply from Steemworld.org and steem price through coin market. Then added value in formula as given below.

Virtual supply = 482,173,818.212STEEM

Steem price through coinmarketcap.com = 0.1941$

Steem Market Cap = Virtual Supply × Steem Price

Steem Market Cap = 482,173,818.212 × 0.1941

Steem Market Cap = 93,589,938.1149492

For finding the SBD Market Cap we can use this formula

SBD Market Cap = Current SBD Supply ×SBD Price

In order to calculate the value of SBD market cap we need current SBD supply and price of SBD price which is considered as constant and it's value is 1$always (not affected by external market). I added the value as follows.

Current SBD supply = 12154109.938

SBD price = 1$

SBD Market Cap = Current SBD Supply × SBD Price

Steem Market Cap = 12154109.938 × 1

SBD Market Cap = 12154109.938

We find steem and SBD matket cap, now by adding these values in formula we find:

Current Debt to Ownership Ratio = SBD Market Cap / Steem Market Cap

Current Debt to Ownership Ratio =
12, 154, 109.938/ 93,589,938.1149492

Current Debt to Ownership Ratio = 0.129

The calculated value of current debt to ownership ratio is 12. 9% that is high from 10 % and if the debt ratio may exceed more than 10 % the SBD printout is almost 0 and they will not reward in pay out and user get steem power and Steem in their payout.

SBD rewards will not be available in the reward if debt-ownership ratio will be exeed more than 10% from above calculations.

Show the step by step to convert SBD to Steem, using the Steemit wallet. Show screenshots.

Follow are the steps to convert SBD into Steem

First login to your steemit wallet and go to SBD and click the button and choose market from options. Place your order in buy Steem your SBD will convert to steem and you will get it 8n your wallet.

Can you convert Steem to SBD? Explain.

In the above similar manners we can Steem to SBD. Follow these given steps

First login to your steemit wallet and go to Steem and click the button and choose market from options. Place your order in Sell Steem your Steem will convert to SBD and you will get it in your wallet.

Before ending my topic I would like to invite @sualeha, @kunwal and @malikusman1 for the contest