What is the difference between STEEM and STEEM Dollars?

in #steemit • 7 years ago

While I was originally researching STEEM, I couldn't find any answers to the difference between STEEM and STEEM Dollars. Well, it's pretty easily available under the FAQ section on Steemit.com. Below is the breakout that Steemit provides to everyone in their FAQ section.

"What is the difference between STEEM, STEEM Power, and Steem Dollars?

STEEM - STEEM is the base liquid currency token in the platform. STEEM can be powered up into STEEM Power, traded for Steem Dollars, and transferred to other accounts. It is a cryptocurrency token, similar to bitcoin.

STEEM Power - STEEM Power (abbreviated SP) is a measurement of how much influence a user has in the Steem network. The more STEEM Power a user holds, the more they can influence the value of posts and comments. STEEM Power is less liquid. If a user wishes to “Power Down” SP, they will receive equal distributions of the STEEM weekly, over a 13 week period.

Steem Dollars - Steem Dollars (commonly abbreviated SBD) are liquid stable-value currency tokens designed to be pegged to $1 USD. Steem Dollars can be traded with STEEM, and transferred to other accounts for commerce or exchange. Steem Dollars may also be converted into STEEM in a process that takes 3.5 days. Steem Dollars can be used to buy things in marketplaces, such as PeerHub.com." - Steemit.com/FAQ

#steem #cryptocurrency #steemdollars #steempower
7 years ago in #steemit by
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     7 years ago  

    Really helpful thanks,

    If I wanted to make a purchase to help push up my posts - which is the most efficient one to buy?

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     7 years ago  

    buy steem and convert it to steem power

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     7 years ago  

    It's making sense now. Do you have a list of websites were a user can sell/trade STEEM or STEEM Dollars?

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     7 years ago  

    is there a similar post that spells out reputation points in relation to steem dollars?

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     7 years ago  

    HI Maggie... I didn't see a reply here. If this question is still open for you, I recently did a post called Steemit Ecosystem at a Glance that answers a number of questions about how different resources (like reputation, voting power, steem power, steem, etc.) are affected by different Steemit actions (like upvoting, powering down, etc.). I invite you to check it out.

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       7 years ago  

      Why steem dollars (SBD) trade now for 5.82 USD?

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         7 years ago  

        $12 now. Yeah sure why not :P

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           7 years ago  

          this was so helpful! thank you! Although I am still not sure on the difference between steem and steem dollars, could you explain it by chance

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             7 years ago  

            I love you Vera. Although, by your post, it shows that they don't teach reading in school nowadays (at least not past the "title" of articles).

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               7 years ago  

              that wasn't nice you get a bronx cheer...
              bbbllpttt.jpg

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               7 years ago  

              Quite interesting and gives me an idea of the whole system...

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                 7 years ago  

                Do you know why they have created Steem and Steem dollars, why 2 ?

                And why does it takes 3.5 days to transfer Steem dollars to Steem, what is the goal ?

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                   7 years ago  

                  About 3.5 days straight from the https://steem.io/steem-whitepaper.pdf :

                  Minimizing Fraudulent Feeds

                  SP holders elect individuals, called witnesses, to publish price feeds. The elected witnesses are presumably trusted by those who have a vested interest in the quality of the feed. By paying those who are elected, Steem creates market competition to earn the right to produce feeds. The more the feed producers are paid, the more they have to lose by publishing false information.

                  Given a set of trusted and elected feed producers, the actual price used for conversions can be derived as the median of the feeds. In this way, if any minority of individual feed producers produces outliers, they will have a minimal impact on the actual median, while risking their reputation as reliable feed producers.

                  Even if all feed producers are honest, it is possible for the majority of feed producers to be affected by events beyond their control. The Steem network is designed to tolerate short-term corruption of the median price feed while the community actively works to correct the issue. One example of an issue that may take some time to correct is short-term market manipulation. Market manipulation is difficult and expensive to maintain for long periods of time. Another example would be the failure of a centralized exchange or the corruption of the data published by the exchange.

                  Steem factors out short-term price fluctuations by using the median price over a period of three-and-a-half days. The median published feed is sampled every hour on the hour.

                  As long as the price feed corruption lasts for less than half the moving median time window it will have minimal impact on the conversion price. In the event that the feed does get corrupted, network participants will have an opportunity to vote out corrupt feed producers before the corrupted feed can affect the actual conversion price. Perhaps more importantly, it gives feed producers an opportunity to detect and correct issues before their feeds start affecting the price.

                  With a three-and-a-half day window, community members have approximately one-and-a-half days to respond to any issues that come up.

                  Mitigating Timing Attacks

                  Market participants have access to information faster than the blockchain’s three-and-a-half day moving median conversion price can react. This information could be used to the benefit of traders at the expense of the community. If there is a sudden increase in the value of STEEM, traders could request conversion of their SBD at the old, lower price, and then sell the STEEM they receive at the new, higher price with minimal risk.

                  Steem levels the playing field by requiring all conversion requests to be delayed for three-and-a-half days. This means that neither the traders nor the blockchain has any information advantage regarding the price at the time the conversion is executed.

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                     7 years ago  

                    It is very clear for me the difference between steem and steem dollar.