My Dear friends, How are you? I hope all of you are doing good on crypto and all will be happy and enjoying your healthy life by the grace of Allah Almighty. I am also happy and well y the grace of Allah Almighty and the prayers of my parents and friends. Today i am comeback on steem crypto academy for participating on it's engagement challenge. My dear friend we all know this is the week 4 of engagement challenge season 9 and i am also ensure my entry in this challenge.

My dear friend today contest is about to debt Vs Ownership, it seems like a very interesting topic of this week and we all know all economic system needs to have a good operation, gain confidence in order to attract investers for investment and give security to the owners of the assets that support an ecosystem, it is for them that both debt and property must have a relationship that indicates a wealthy & good economy. So, let's start to discuss about this.

Explain indebtedness and ownership in the steem network. Explain this concept in the centralized fiat world.

Steemit is a social network based on the Blockchain, it was created in 2006 and since then it has been active giving its users the possibility of creating publications where a payment system is used in 3 different currencies, the first and ours native currency is STEEM, this is generated or earned when another user of the platform votes for your content, adding value to your publication, depending on the weight that this user has on the platform, this user value is measured by the second currency that is the STEEM POWER. The third currency is the SBD (steem dollar), this currency is the one that is in charge of supporting and giving security to the steem currency.

The SBD currency is obtained from rewards to the author with a ratio of 19:1, that is, for every 19 steem produced, an SBD is generated, this ratio may vary depending on the ratio in the Market Capitalization, for For example, if the relationship remains in a range of 4 to 6%, if the relationship is lower or higher than this range, actions can be taken to protect the ecosystem. The SBD currency is an intelligent debt contract within the platform, that is, if you own SBD, you own part of the steem debt, you own a certain amount of steem at the value that represents the SBD anchored to the US dollar.

In the centralized fiat system there are entities such as banks, cooperatives, credit card companies, which are in charge of giving loans, they have large amounts of money in their vaults with which they can leverage loans to their clients with a range of percentages of interest that are charged annually, these companies also have a measure of knowing their financial status, that is, if it is healthy or not, calculating the debt ratio, which its interpretation and calculation is the same, is done through the relationship between the market capitalization and if it has values ​​between 4 to 6%, it is said that the entity is financially healthy.

If the ratio (SBD Debt/Steem ownership) is high, how does it affect the Steem price?

Now, if the SBD debt/steem property ratio is high, it can be said that the platform has a lot of debt, this results in losing trust and can affect the price of steem, or its value can plummet, which that would cause a catastrophe within the ecosystem. sbd ratio should be lesstheofrom 10 or 9 % because then we get sbd on our wallet. of the sbd / debt ratio is more than 10 % then there will be a stop in the printing of SBD.

In the simple form if there are many SBDs in the system, the SBD debt/steem ownership ratio is high approximately to 10 % up as you can see on the above, which causes the steem value to drop. So then we can burn our sbd in the form of steem and try to pump our coin value as we always support to burning of steem.

What mechanism does the Steem Blockchain use to control the debt/ownership relationship.

The mechanism is primarily based totally at the manage of the SBD, that is, if the SBD debt/steem assets ratio is excessive and tactics 10%, the SBD component is not given as a reward; that is actually a regulation or ordinary that SBD holders can not have the equal of 10% of the Market Capital, whilst this takes place it ends in best rewards received through e-book in steem, as a result controlling the marketplace and making the debt does now no longer devalue the fee of steem.

At this time we're experiencing this situation, due to the fact our courses are best receiving steem and SP, the price that become given to us in SBD is repressed, that is due to the fact at one factor the connection turned into excessive, in keeping with reasons withinside the moves withinside the marketplace Well, many SBD holders do now no longer trade them for steem, nor do they convert them into SP, which leads to a excessive quantity of SBD withinside the ecosystem.

Show the step by step to convert SBD to Steem, using Steemit wallet. Show screenshots.

The first thing we must do is go to our steem wallet and log in, then we proceed to take off the subscreen in the SBD tab and we must press "Market", like this. You can see in the below screenshots that is taken by me from my steemit wallet. By following this you can easily do this.

After this a new interface will be open where we will make the change from SBD to steem, for this we position ourselves on the up side of the mobile screen where it says "Buy Steem", in the last box we place the amount of SBD that we are going to exchange, immediately in The box above tells you how many steem they will give you in that change, in my case you can see that I have nothing available sbd but if i have so i can easily exchange it through this process.

Here you can see this is all the screenshots of my wallet that is taken by me for this participation post. And i hope you can understood my method to explain.

Can you convert Steem to SBD? Explain.

The first thing we must do is go to our steem wallet and log in, then we proceed to take off the subscreen in the Steem tab and we must press "Market", like this:

After thay a new interface will be shown where we will make the change from steem to SBD, for this we position ourselves on the end side of the mobile screen where write "Sell Steem", in these box we place the amount of steem that we are going to exchange,

Immediately in the box below tells you how many SBD they will give you in that change, in my case you can see that I will change 6.999 steem which results in a purchase of 0.580 SBD, then we press the "Sell steem" button . So:

A subscreen opens indicating the data of the order, if they are correct and we agree, press "OK". With this, the order is already in the market, we just have to wait for the transaction to be carried out.

Now my dear friend this is the end of my post and i am very happy to be a part of this wonderful contest that is organized by syeemit crypto academy. And through this contest i have a chance to explore new things about steem blockchain. Thank you so much all the professors for organizing this contest.

Now I would like to invite @wilmer1988 , @mato445 , @suboohi , @aaliarubab , @patjewell, @steemdoctor1 , @waterjoe, @simonnwigwe and @malikusman1 for participating on this contest.

Kindly Regards,
Faran Nabeel , Discord Id : Faran Nabeel#8111