Steemit is a social network that combines content creation, interaction with users and the use of a blockchain with a cryptocurrency called STEEM.
The way it works looks like web pages like Reddit. The only difference is that all text content remains forever recorded on a Blockchain.
Users or members can make an upvote to the content they want and depending on how many votes are obtained, a reward will be obtained in the form of Steem, Steem power or Steem dollars.
Voting content also makes you get rewards in the form of Steem. It's what are called Curation Rewards. Even comments can be voted and in this way become monetized
Steem Power: represents the influence that a user has on the social network compared to the rest of the users in the community and is measured in Steem. It cannot be bought or sold but it can be transformed into Steem in a process that lasts 104 weeks. This method is called Power down. When a new user registers, the platform gives a small amount of Steem power to each member. You can always get more Steem Power through a process called Power up where the Steem is transformed into Steem power. The more Steem power a user has, the greater the impact their votes have. If the content is voted by someone with a considerable amount of Steem Power, then, the post will be rewarded with Steem, Steem Power or Steem Dollars.
Steem Dollars: The Steem Dollar is an asset that always intends to be worth the same as a US dollar. It can be bought and sold in the cryptos market just like Steem. On the same platform there is an integrated exchange value allowing the change from Steem dollars to Steem. This process usually takes a week. The Steem Dollars will give an annual interest of 10% if they remain on the platform, but if the Steem Dollars increase in value exceeding the dollar, the interest may be stopped. On the contrary if the Steem Dollars are changed to a value lower than the US dollar and the amount of them is not very high, then the interest will increase. If the person chooses to convert the Steem Dollars to Steem, there will be three things they can do with the Steem: sell it, use it as a cryptocurrency or convert it to Steem Power.