What is STEEMIT and how does it work? 2017 Part 1

STEEMIT A SCAM OR LEGIT?

Steemit is powered by blockchain technology and uses a new cryptocurrency to reward users who upload articles, images, commentary, etc. Other ways users can get paid is through commenting and up-voting popular content.

Steemit has a reputation system, where new accounts start with a reputation of 25. An account's received votes can influence its reputation up and down.

The Steem blockchain has two tokens: STEEM and Steem Dollars.

STEEM are the units that are bought and sold for actual money on the open markets. You can trade them for bitcoins and withdraw as real money. You can buy and sell Steem, speculate on it’s price or convert it to Steem dollars and Steem power.

Steem Dollars is a currency that designed to be pegged to the United States dollar.

Steem Power – known as SP, is a token symbolizing how much influence you have inside the Steemit platform. If you have a lot of SP your upvotes will count more and will award different authors SP and Steem dollars as well.

Steem has no transaction fees for rate limiting or to pay its block producers. Instead, accounts use bandwidth.