All communities posts are on Steem, they will still show up on your blog on the Steemit interface (until communities are integrated there), but they have attached metadata that says which community they are in. The posts will still be able to be rewarded with STEEM. If you don’t want the posts to be seen on other interfaces, it is possible that you can encrypt the posts in the community so others can’t read the text. But in general, communitites are intended so all posts are public but who can post to the community can be limited. Does that answer your question?
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It does, thank you! I do wonder if closed groups are possible the blockchain somehow, though. I'm looking for an alternative for closed/private facebook groups.
It’s definitely possible - and one can create an interface for reading from and writing to those posts, that would be an interesting project someone can do in the future. @jarvie is trying to create a set of standards for Steem interfaces, maybe encryption could be a part of that...
It's really needed. Many people are fed up with Facebook, but the only reason they're staying there is for the groups. Business groups, interest groups, etc. There simply isn't a proper alternative yet, especially not on the blockchain.
Well then they will find that alternative here :)