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RE: Beyond the STEEM Whitepaper – 1. Blogging and Curation Rewards Fund; Steem Backed Dollars Creation
The one thing I don't understand yet is how the sd is actually created. Ie. How does the blockchain get the sd or turn the steem into sd?
It creates the sd out of thin air i.e. one second they did not exist, the next second an account is credited/given X Steem dollars.
Thats not possible. Someone must hold collteral in order to create SD, or am i misunderstanding? SD are lent into existwnce, so someone or thing must provide the collateral.
How the blockchain gets SD is not well explained anywhere i am aware of.