The most common thing we know about the Steem Dollar (SBD) is that it was created as a stable value unit in the Steemit Platform. Steem Dollar (SBD) created from blockchain Steemit when blog post upvote by a reader.
Steemit then calculates the value of each blog post based on the number of votes and the quality of Steem Power (SP) contained in each of these votes. The value of the post results will be split 50:50 to Steem Dollar (SBD) and Steem Power (SP). This concept of understanding creates the formation of Steem Dollar (SBD).
The main thing you should know is, there is no USD (US Dollar) who really backing the value of Steem Dollar (SBD). The value of the Steem Dollar (SBD) unit is pegged to USD (US Dollar) due to Steemit blockchain capability to create unlimited supply STEEM units.
Steem Dollar can be claimed in the form of STEEM unit value, which then STEEM can be sold to buyers with USD (US Dollar) or Cryptocurrency Assets such as BitCoin. When 1 Steem Dollar (SBD) is created then the $ 19 STEEM is also created and then converted to Steem Power (SP).
Well ... based on the above point ... it is very important we realize that ... if one day later if STEEM unit prices collapse and no recovery back then the benchmark price Steem Dollar (SMD) to USD (US Dollar) will break.
Next, the second important information is that the Steemit system selects a set of people to provide value for STEEM to USD (US dollars) to be honest. The person chosen by the holder of STEEM is compensated/rewarded in the STEEM unit for the services they pour out. If these people do not provide accurate data, they can be fired from the system and new people will be selected to replace them.
The purpose of all this is to ensure that the Steem Dollar (SBD) can still be exchanged fairly to the STEEM unit equivalent to $ 1 USD (US Dollar).