Understanding What is a Steam Token (STEEM) and a Steem Dollar (SBD)

What is a Steem Token (STEEM) and a Steem Dollar (SBD). Social media space has become a dynamic one these days. Social media platforms are now nestled into our daily lives. People like Reddit, Twitter, Facebook and Instagram are gaining popularity every day.

News and content is shared quickly on this platform rather than any other news channel in the world. The platform also appeals to people who want to engage with their peers from all over the world. As a result, Steemit revolutionized the world of social media and networking using blockchain STEEM in addition to its prize unit Steem Dollar (SBD).

Users on this platform are rewarded for their contributions. Contributions can be content, liking and commenting on and discussing 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 its blockchain and 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 organize content, and you can view it as Reddit. The platform was launched in 2016; However, it 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. In fact, this is the basic unit that determines the value of all other units in Steemit. As mentioned above other units consist of Steem Dollar and Steem Power. STEEM is not really a currency, though more or less a gateway between Steemit (platform), and platform currencies (Steem Dollar) and even the common currency (Steem Power).

Steem uses the Smart Media Token, which is the original digital asset on Chainchain Steem. They resemble the token of ERC20 Ethereum, but incorporate a special 'Proof-of-Brain' property together with a token distribution reward system developed for the digital content business. Steam Token (STEEM) can be traded and can be converted to Bitcoin or Ethereum.

Read also: How to get thousands of dollars Steem (SBD) every day in SteemIt

Steem Dollars (SBD)
Users are rewarded for their contribution to the Steemit platform in this cryptocurrency unit called Steem Dollar (SBD). It's connected to the dollar and essentially represents Steem equivalent to one US dollar. It is important to note that SBDs are not fixed; Instead, they fluctuate depending on the current conditions in the market. They usually earn 10% interest per year. SBDs can be converted to STEEM, redeemed to STEEM in the internal market, in addition to being redeemed at various exchanges such as Bittrex or OpenLedger DEX.

Steem Power (SP)
This currency can not be traded on external exchanges; however, this can be referred to as an internal "currency" in the Steemit network. Investing in Steem Power (SP) can be seen as acquiring a stake in STEEM. It offers various advantages for Steemit users, for example, they get shares directly in Steem's pool, in addition, their voting power increases which can mean that users can choose to increase the authors' rewards including oneself.

In conclusion
STEEM is the award winner in the Steemit ecosystem. In addition, it is also a stock proof for users who hold Steem Power (SP). Steem Dollar (SBD), on the other hand, provides the stability of other currencies on the platform.