Created in 2014, Bitshares is one of the true blockchain veterans. It was created by wunderkind blockchain and visionary Dan Larimer to facilitate decentralized financial transactions and interactions. This was made possible thanks to the decentralized exchange Bitshares, on which cryptocurrencies can be commercialized and created. Bitshares is quite technologically advanced, and even holds the record for the most transactions in a day (920,000 transactions on September 13, 2017).
What did Bitshares do?
Bitshares was created to help the unbanked, more than 3 billion people worldwide who do not have access to financial services. The trusted and decentralized blockchain has created an opportunity for the unbanked to access the safe depository of their money by becoming their own bank.
To create a Bitshares account, all you need is a device that can connect to the Internet and, of course, an Internet connection. After the Bitshares account was created, the Bitshares platform provided various financial services to its users.
Basically, Bitshares is a decentralized exchange. With recent hacks and downtime issues, decentralized exchanges are likely to become more popular.
Thanks to the use of Bitshares Graphene technology, Bitshares allows for very fast and cheap transactions. Through the use of this technology, Bitshares is theoretically capable of executing a maximum of 100,000 transactions per second and has a blocking time of 1.5 seconds. This is much faster than, for example, Bitcoin and Ethereum, which can handle about 4 and 15 transactions, respectively. The graphene technology used can make Bitshares faster than VISA, which can process 45,000 transactions per second.
In the decentralized Bitshares exchange, you can exchange two types of assets: smartcoins and user issued assets.
Smartcoin is a currency that is associated with certain valuable assets, such as commodities and currencies. These issued currencies are programmed so that they always have a value roughly the same as the base asset’s value (volatility can cause temporary differences).
For example, 1 BitUSD will always equal the US dollar and 1 BitGOLD will equal the value of gold. The purchase, sale and maintenance of the currency assigned based on this value is carried out through the use of smart contracts and through the use of BTS from Bitshares’ native currency for transactions.
The cryptocurrency USDTether is well-known for doing the same thing, and it provides a very useful tool to take advantage of one and escape a possible downturn or bear the market without taking your money out of cryptography. This fixed currency also provides an excellent way to utilize the speed and low transaction fees of blockchain technology without being affected by the high volatility of the cryptographic market.
User issued assets are assets issued by users of the Bitshares platform. Each BTS owner can issue their own assets, and it is entirely up to them how they structure the assets, what level of control (if any) they want to keep and what value / how much currency they will assign.
The best example of how user-issued assets can be used is for collective financing of a new company. The crowdfunders can create currency for the companies they are launching, and each currency will represent ownership with a dividend. Coin holders will receive these dividends, but they can also help the company grow and be a part of it.
Decentralized Autonomous Company
All of this depends on the level of control the publisher wants to maintain. You can also create a completely decentralized business, called a Decentralized Autonomous Company (DAC).
Bitshares and DAC show the beauty of blockchain technology and decentralization in its purest form. Bitshares itself is actually a DAC, and the Bitshares platform is programmed in such a way that there is a budget for workers to update and develop the platform.
Bitshares coin holders decide how these funds are allocated based on the amount of coins deposited or staked. The more coins you play, the greater the weight of your vote. They can choose from three different types of workers:
Witness: paid to process transactions and secure the network.
Delegates: without paying, but occupy a delegate position based on their contribution to the platform and can propose updates to the Bitshares platform
Workers: can propose projects, and once they choose a project they are paid to develop these projects
Likewise, user-issued DACs operate on the same principles, and companies created on the platform can grow organically, financed by the Bitshares community. Community members can even become decentralized employees in the same way that the Bitshares platform works, therefore of the total project financing and distribution by the DAC programming.
Bitshares was founded by blockchain prodigy Dan Larimer. Apart from founding Bitshares, Dan Larimer is also in charge of creating the Steem blockchain and is currently working on the EOS blockchain.
Because Bitshares is an autonomous company that is decentralized in its own right. Every user who actively participates in the platform through voting, gambling, development and creation contributes to the development of Bitshares.
The Bitshares Foundation is an example of how this develops in real life. This is a non-profit organization founded by active members of the Bitshares community to further develop the Bitshares platform.
Competitors and Challenges
One of the main advantages of Bitshares in relation to its competitors is that, for now, it has higher scalability. Another major advantage is Bitshares smartcoins, which are not yet available on other platforms, with the exception of USDTether which is surrounded by FUD.
Attracting new users and keeping them out of the competition is the main challenge for Bitshares. There have been a number of complaints about the ease of use of the Bitshares platform, and new users tend to ignore using the platform because of this.
Additionally, Bitshares faces blockchains competition with budgets for hugely successful moves, such as major alliance announcements, intensive marketing campaigns, and brand changes. How Bitshares will handle this depends entirely on the community.
How to buy and store Bitshares
You can buy Bitshares (BTS) on the Bitshares Asset Exchange on Binance and Indodax. You can store your BTS in the Bitshares portfolio or in the Bitshares decentralized exchange. Storing your currency on a decentralized exchange will not expose you to third party risk the way centralization does, because you have control over your private key and always own the currency you own.
Bitshares offers a lot of features and can be used for various purposes.
The Bitshares blockchain has been around for over 4 years and has been in constant development. Progress is based entirely on what users want and has led to one of the most complete platforms in the blockchain space today. It’s amazing how the DAC works, and the Bitshares platform itself has shown that a decentralized approach to doing business really works.
As blockchain and cryptocurrencies became so popular, successful cryptocurrencies with large marketing budgets and impressive associations entered the cryptographic space. And the success and development of bitshares depends on the community. Hence, it is up to Bitshares users to find a way to keep Bitshares competitive against many of its competitors.