SMT Whitepaper Summary part 1

As mentioned in a previous post, I'll be summarizing the #SMT whitepaper as I read it.

Preamble - The blockchain

I understand the blockchain to be a huge ledger of all transactions which is distributed across the Internet. Everyone has access to it at the same time. It can’t be changed and cannot be controlled by any one entity. It’s peer to peer, that is, it enables transactions to occur directly between the people involved without the need for a third party.

...an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
--Don Tapscott

I tutor students. I haven't got paid by anyone outside my home country because of restrictions with Paypal or unreasonable payouts from another payment gateway. If I can do business with someone from across the world without having to go through a third party this would be great!

I think this is what the blockchain enables. It would enable me to access funds directly from a customer.

Smart Media Token

is a plan to build a system to give out tokens based on the STEEM blockchain.
So I’m guessing that somehow transactions involving these new tokens will show up in the STEEM ledger.

With SMTs, any website or content library across the internet may have one or more tokens integrated into its interface to facilitate fundraising and autonomous growth.
--Straight from the whitepaper.

I, as the website operator, decide how these tokens work. Who gets them, how much they get and how many new ones are generated ever so often. I'm guessing that it would help if I actually have money to equate to these tokens. I don't think I can just pull them out of thin air. They have to be backed by some kind of money, either, STEEM currency or regular currency like the US dollars. I need more clarification here and also on how I can charge for services in my cryptocurrency and make it profitable for me, since all the money is coming from me in the first place.

I see the whole concept of the SMT as a way to help grow my following because users get a real reward for taking part in my site. And it ensures that I bring people to my site who are interested in what the site offers.

I won't be starting from scratch per say, in building my own cryptocurrency because it's based on the ecosystem that is already in existence for STEEM; a place to buy and sell the tokens without inference by banks, opensource applications such as wallets and libraries that would help developers get off to a successful start.

Summary

I can have my own cryptocurrency that is based on STEEM. I can use it to reward users of my site and be up and running in no time.

Disclaimer

I'm learning all of this as I go along. Feel free to shed light where necessary and point out useful reading resources.