Hello friends, Hope you all are doing good. Today I am going to discuss with all of you about the very common and an important thing to understand Steemit.
Most of my friends and beginners on Steemit ask me a very common question that What is Steem, Steem Dollar and Steem power?
So today I would be explaining to you about this in detail and how we can use it on the steemit platform. Before going into detail we must understand each and every term firstly.
- Steem Based or Backed Dollar (SBD) also known as Steem Dollar is a token that is meant to be worth equivalent to 1$ so It can provide the stability and can be accepted in business also because of its stability.
- STEEM is also similar to Steem Dollar but not much stable like Steem Dollar.
- Steem Power is generated through STEEM in a process called Powering up. We cannot withdraw Steem Power directly, in order to withdraw it we have to first power it down to STEEM.
UNDERSTANDING STEEM, STEEM DOLLAR AND STEEM POWER FOR STEEMIT
These are the 3 tokens that are been generated by the Steem Blockchain. The author gets the reward of his post in a proportion (50% SBD/ 50% SP) as the Author can also change this setting to power up 100% SP. Before understanding more about Steem Power we must first understand STEEM and Steem Dollar.
(1) Steem Dollar - Tradeable tokens that may be transferred anywhere at any time. This is what we see about the Steem Dollar when we open the wallet, What it means is that Steem Dollars can be used to transfer it to anyone. Authors use the SBD to get the upvotes on their post through the Steem bot tracker service provided by @yabapmatt and also for resteeming their post. Steem Dollar can also be transferrd directly to savings from where we can withdraw our SBD.
(2) STEEM - It is similar to SBD but has more additional features. If you go to the wallet you can see the same information written below the STEEM as written below SBD means it can be also transferred to anyone in order toSTEMote their post and also it can be transffered to savings from where we can withdraw it. But STEEM has one more feature that it can also be converted into Steem power in a process called powering up.
(3) Steem Power - Steem Power is something which shows the voting power of a user and also it helps to earn more curation reward. Now the more Steem Power you have the more is the value of your vote and the other thing is that It helps you to earn curation reward (you can check the link to know more about curation reward). https://steemit.com/steemit/@amanpreet24/what-is-author-and-curation-reward-how-to-earn-curation-reward
There is no such factor that I'm aware of to calculate the vote value but according to me how you can calculate the vote value of someone, Go to the wallet and check how much steem power he has with him.
If he has 100 SP then vote value would be around 0.01$.
If he has 10000 Sp then vote value would be around 1$.
It's not accurate but yes It can give you the idea of someone's vote value.
If you have some Steem Power, You can also delegate it to someone to earn Rewards from it. Delegation means that you are borrowing your Steem Power to someone and in return you will get the profit from him. If you Delegate your steem power to someone and you think that would I lose it? then you don't have to worry about it, If you delegate your Steem Power to someone he won't be able to withdraw it and you can take back your Steem Power back at any time you want but it takes 7 days of time to get back to your account.
Can We Withdraw Steem Power?
You cannot withdraw Steem power directly to any other crypto, In order to withdraw Steem Power you have to power down Steem Power to STEEM and then from there you would be able to withdraw it, but the process of this powering down takes a long time about 12-13 weeks.
So this is all about STEEM, Steem Dollar and Steem Power and hopes it would definitely help everyone to understand these important terms. If you have any questions you can ask me in the comment section.
If you liked the post then please upvote, comment, follow and resteem.