Understanding What Steem Tokens (STEEM) and Steem Dollars (SBD)
What is Steem Token (STEEM) and Steem Dollar (SBD). Social media space has become a dynamic one lately. Social media platforms are now interwoven into our daily lives. People like Reddit, Twitter, Facebook and Instagram get popularity every day.
News and content are shared quickly on this platform rather than other news channels in the world. This platform is also interesting for people who want to engage with their colleagues from all over the world. As a result, Steemit revolutionized the world of social media and networks by using STEEM blockchain in addition to the Steem Dollar (SBD) prize unit.
Users on this platform are rewarded for their contributions. Contributions can be in the form of content, liking and commenting and discussion on various topics.
Understanding the STEEM Token Network Platform
Many users find it difficult to understand the concept of the Steemit network platform along with the blockchain and the reward system. It is important that we clean up this widespread confusion.
Steemit
Steemit is the platform itself, in other words, it allows users to create and manage content, and you can see it as Reddit. This platform was launched in 2016; However, he has witnessed tremendous growth in the user base. Users are rewarded for the content they post on this platform in either Steem Dollars (SBD) or Steem Power (SP).
Steem Token (STEEM)
STEEM, on the other hand, is a blockchain that drives the platform. Actually, this is the basic unit that determines the value of all other units in Steemit. As mentioned above another unit consists of Steem Dollar and Steem Power. STEEM is not really a currency, although it is more or less a gateway between Steemit (platform), and platform currency (Steem Dollar) and even common currency (Steem Power).
Steem uses Token Smart Media, which is the original digital asset in Chainchain Steem. They are similar to the Ethereum ERC20 token, but incorporate a special 'Proof-of-Brain' property along with a gift distribution token system developed for digital content businesses. Token Steem (STEEM) can be traded and can be converted to Bitcoin or Ethereum.
Also read: How to get thousands of dollars of Steem (SBD) every day at SteemIt
Steem Dollars (SBD)
The user is rewarded for his contribution to the Steemit platform in this cryptocurrency unit called Steem Dollar (SBD). This is connected to dollars and basically represents Steem equivalent to one US dollar. It is important to note that SBD is not fixed; Instead, they fluctuate depending on current conditions on the market. They usually get 10% interest per year. SBD can be converted to STEEM, exchanged to STEEM on the internal market, in addition to being exchanged on various exchanges such as Bittrex or OpenLedger DEX.
Steem Power (SP)
This currency cannot be traded on external exchanges; however, this can be referred to as an internal "currency" on the Steemit network. Investing in Steem Power (SP) can be seen as acquiring shares in STEEM. This offers various benefits for Steemit users, for example, they get shares directly in the Steem prize pool, besides, their voting power increases which can mean that users can choose to increase the authors' awards including themselves.
The conclusion
STEEM is a determinant of value in the Steemit ecosystem. In addition, there is also evidence of shares for users holding Steem Power (SP). Steem Dollar (SBD), on the other hand, gives stability to other currencies on the platform.
