BitShares is designed to be fast, efficient and scalable… to manage the tens of thousands of transactions per second that go with a decentralized exchange. To understand the assets that are exchanged on the decentralized BitShares exchange, it is necessary to understand the stable assets, called smartcoin, and the digital assets, called user-issued assets.
In the Blockchain world, it is important to reduce transaction costs, increase transaction speed and make the system scalable to compete with existing financial institutions. BitShares is designed with these constraints in mind, eliminating the Bitcoin‘s “Proof-Of-Work” algorithm and replacing it with DPoS (Delegated Proof of Stake), which is cheaper and more efficient. This allows BitShares to have almost instant transactions with extremely low fees, and an infrastructure that adapts to the size of Visa / PayPal… and even beyond.
Currently, crypto-currencies such as Bitcoin are traded in large markets, according to the traditional logic of centralization, with a single point of failure for corruption, information theft, coercion, theft, fraud, etc. That’s a problem. However, one solution is to use the technology behind the Bitcoin, the blockchain, to create decentralized exchanges. BitShares has been partially designed with this in mind, hence the importance given to speed, efficiency and scale. A project to compete with Wall Street and the world’s major stock exchanges?
With BitShares, it is possible to exchange many types of assets in addition to the native BTS. In particular, there are so-called Smartcoins and user-created assets. Smartcoins are parts like bitUSD, bitGOLD and bitCNY that follow the value of their counterparts, so that 1 bitUSD today will be worth 1 USD per week, month or year from now on. With Smartcoins, people can enjoy the benefits of the blockchain payment network without being exposed to the volatility associated with its disruptive and nascent stage of development. Not bad, is it?
The resources issued by users are, as its name suggests, assets issued by the user, which means that everyone can issue their own assets. The issuer of the asset may define different levels of control of the asset, including not having control at all. Assets can be used for an incredible variety of things, including crowdfunding with fairness, using them for property rights, or even using them as VIP tickets or just fan tokens.
BitShares is one of the leading Altcoins with exemplary founding thinking and architecture. To summarize the project: BitShares is a decentralized network, protocol and industrial quality platform – based on a DPoS (Delegated Proof of Stake) and Graphene (Steemit backend engine) algorithm with the potential to handle more than 100,000 transactions per second.
BitShares offers a variety of decentralized financial services – SmartCoins bitAtets issuance, including market-indexed assets (MPAs) and other encrypted pairs from recognized commonplace assets (e.g. Gold, Oil, S&P & P 500).
Despite all these risks and challenges, the team perseveres, grows and continually overcomes problems. The interfaces they have put in place are also very user-friendly, which undoubtedly encourages the adoption of BTS, and as the platform matures and proves its value, it will generate interest from FinTech and financial services players. Thus, we are rather optimistic about the future value of the BTS.