Do SMTs work on a side chain? Or are all actions done on the Steem main chain? I suppose the RC system makes it so that the main chain does not get overloaded. However, it would also mean that potention growth would be limited, since you can't run 1000's of different SMTs putting too much pressure on the blockchain?
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The RC system allows for users to interact, but the chain itself should be able to take the load of all the SMTs transactions also. As far as I know, the chain at the moment is at something like 0.07% load.