The more Steem Power you have, the more transactions you can make per unit of time. Transactions include transfers, voting, and flagging. The bandwidth currency token we never see is there so we don't get eventually into a fee-market scenario like with Bitcoin. The alternative is transaction fees. That leads to a fee market.
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That is an interesting detail, @leprechaun. I have looked up quite a few postings regarding the bandwidth issue over the past few days. Many are mentioning the correlation of SP and bandwidth. Could you elaborate a little more about the relation of fees and bandwidth? Or post some links if you have them? Thanks!
Take the bitcoin blockchain for example. The transactions that go into bitcoin cannot exceed more than a million-bytes every ten minutes. The amount of transactions that are issued by bitcoin users has exceeded this value. If you want to send money and I want to send money using the bitcoin blockchain but there is only room for one more transaction, how do we decide who gets their transaction into the block?
Bitcoin solves this with transaction fees. Who ever pays the higher transaction fee gets to send the transaction. Steem solves this by rationing the number of transactions a person can put in the blockchain per unit of time based on how much Steem power each one has. If you have double my steem power, you can send twice the amount of transactions per unit of time than I can.