What does Steemit use to pay users on its Platform?
This form of question is most frequently questioned by new users in Steemit. It is very difficult to explain clearly and in detail to be easily understood by the general public. What's more for those new to steemit. Because, there are many things in Steemit's basic concept that are very different from other social media platforms. Plus the fact that a large number of people who are now joining Steemit do not know Cryptocurrency (digital currency).
But the real reality, newcomers in Steemit continues to grow to millions in early 2018. And seeing this enormous growth of Steemit, the gateway to Cryptocurrency's success is increasingly widespread, it is wise to explain the importance of knowing Steemit's basic concepts as an important part of Cryptocurrency growth.
Okay. Let's go back to the point of looking for answers to the above questions. For temporary short answer I will give is "Steemit will pay its users by using Cryptocurrency currency called Steem and Steem Dollar abbreviated as SBD (Steem Blockchain Dollar)". But it will be confusing when you look at your steemit account's wallet that there are three types of currency there. First is Steem, which is placed at the top, then under it there is Steem Power which abbreviated as 'SP'. Then thereafter there is Steem Dollar (SBD). Okay, now we will explain one by one.
Steem
Steem is a true digital currency token in Steemit, created from Steem Blockchain, as well as Bitcoin and Ethereum produced from their own Blockchain. So, Steem is a digital token that has nothing to do with Bitcoin and Ethereum. This Steam Token may be traded or exchanged with other currency tokens in the Digital Asset Exchange Cryptocurrency trading exchange such as at Bittrex.com, Poloniex.com, Blocktrades.us and others. And in Steemit, Steem can be exchanged with Steem Dollar, can be transferred to fellow users Steemit users and can also be added to Steem Power to increase the strength and value of the sound (Upvote) your account.
Steem Power (SP)
Steem Power or commonly abbreviated as SP Actually is the Steem mentioned above. As far as I understand, Steem Power is like a form of investment capital to mine Steem (like bitcoin mining that uses a special set of computers to generate blocks). Having a lot of Steem Power will increase your chances of getting a lot of Steem. Because, the more Steem Power the more influential the sound value (Upvete) you give to each post in upvote, even though it's your own post. So, The more value your voice gives the more rewards you will receive. And this is a standard measure that affects the Steem network.
Steem Dollar
Steem Dollar (SBD) or so-called liquid tokens is another token designed as a balancing value against the Dollar (USD). Basically this token equalized the exchange rate with the value of USD Dollar. Although in reality it is very difficult to prevent the token value from running to not shift in place. Because the price of Cryptocurrency token itself is determined by market participants. This is part of the nature of 'Decentralization'. And in Steemit, just like the Steem token, the Steem Dollar token can also be transferred to another account, and can also be traded with Steem in Market Steemit. But Steem Dollar can not directly be raised to Steem Power. If you want to do it, then the Steem Dollar in exchange first with Steem, after becoming a new Steem you can add to Steem Power.
Well .. It is now clear that Steemit pays its customers with Cryptocurrency currencies generated from the Steemit Platform itself on the basis of technology based on Steem Blockchain.