What are Smart Media Tokens used for?
Smart Media Tokens allow regular businesses to have the same capacity as Steemit to reward users monetarily for participation on the platform (such as writing good content, voting well, commenting often, participating in campaigns, rating products, bringing new users to the site, etc.). This incentive increases interest and grows the user base, which in turn grows the value of the company. So this incentive allows the company to make more money off its users/customers and to reward their users/customers at the same time.
What does this mean?
This means that social media platforms like YouTube, Facebook, Reddit, Medium, Twitter and other companies with a large customer base like Apple or Amazon New York Times could reward their customers with cryptocurrency just like Steem. But they wouldn’t reward them with Steem, they would reward them using a new Steem blockchain based Smart Media Token, which they would name and which they would customize for their special needs. These external entities will sign up through Steemit to operate their own cryptocurrency on the Steem blockchain. These companies will receive Smart Media Tokens or coins, which are like Steem, but they won’t be Steem, they will be a Smart Media Token with another name chosen by these companies.
Where are these coins used?
This coin will be used only on their platform, only on their website or only at their stores. Steem and Steem Blockchain Dollars (SBD) are Steem coins used inside the Steemit platform. SMT are Steem coins used outside the Steemit platform. All of these are coins based on the Steem blockchain, but they are used different places.
Why would these companies want to do this?
This allows these companies to take advantage of the cryptocurrency blockchain system without the expense of building their own blockchain. This means that social media platforms like YouTube, Facebook, Reddit, Medium, Twitter and other companies with a large customer base like Apple or Amazon New York Times could reward their customers with cryptocurrency just like Steem.
How does this arrangement help Steemit and holders of Steem coins?
The adoption of cryptocurrency and the blockchain by these large organizations will expose a large portion of the world to cryptocurrency and the advantaged of the blockchain. This type of publicity increases the number of people who understand and take advantage of the blockchain concept. This can only be good for cryptocurrency. Plus it’s good for Steemit in particular because it should also increase the value of Steem. Remember that although these smart media tokens are coins with a different name then Steem or Steem Blockchain Dollars (SBD) , they are still part of the Steem blockchain and in the Steemit family of coins.
References
Announcement by Ned Scott Steemit CEO: https://steemit.com/steem/@ned/announcing-smart-media-tokens-smts
Article by Ned Scott, Steemit CEO: https://smt.steem.io/
Steemit White paper on SMT: https://smt.steem.io/smt-whitepaper.pdf
Article by @littlescribe: https://steemit.com/cryptocurrency/@littlescribe/smart-media-tokens-smt-explained