BitShares (the BTS symbol), formerly known as ProtoShares (PTS), is an industrial class of “crypto-equity”, a peer-to-peer distributed book and a network based on the delegated rate argument (DPoS) algorithm. It was created in 2014 by Dan Larimer (“Bytemaster”), co-founder of Steemit, EOS, and Cryptonomex.
What does the company / project do?
BitShares is based on Graphene, an open source C ++ implementation that acts as a consensus mechanism. Graphene is used by several other projects, such as Steemit.com (decentralized Reddit, the platform for the blog) and PeerPlays.com (gaming site and PPY token), which indicates use in the real world.
BitShares operates more like a capital, rather than a purist “currency,” because BTS markers are used as collateral for a variety of decentralized financial services, such as smart contracts, decentralized exchanges, banking, creating derivatives (market-bound “bit-asset” ) and currency rails.
I launched BitShares in response to the arrest of bank accounts of the Mt. Gox in the USA. Since that time a few large crypto-exchanges have ceased their work, or they have been hacked. Some time ago, the hot wallets of Bitcoin-Exchange Bitstamp have compromised again, and its maintenance was temporarily suspended. We are convinced that while we trust the storage of assets to a third side, our well-being is under threat. Today I would like to present you a more perfect approach to the exchange of crypto-currencies. Imagine that you could buy and sell cryptocurrency, without exposing your funds to intermediary risk. Imagine that the commission would be lower, and there would simply be no limits on the withdrawal of funds. Imagine that you could trade all the assets, including gold and silver. Imagine that there would be a single exchange glass with the best liquidity that the market can offer. Today it became possible thanks to BitShares, however, at present, this fact is one of the most carefully kept secrets in the cryptocurrency space, said Daniel Larimer.
Technical Information BitShares
Consensus Algorithm: Delegated Proof of DPOS Share
Blocking time: average value 1.5 seconds, maximum 3 seconds, waiting time 1.5 seconds for the probability of irreversibility 99.9%
The reward for the block: 1 BTS (from the reserve pool)
Irreversible blocks: (2 * BLOCK_INTERVAL * WITNESSES / 3) ~ 34s
Coins are not in the reserve fund: 2 599 900 000 BTS (2017 September 30)
Coins in the reserve fund: 1 000 668 097 BTS (2017 September 30)
Maximum coin: 3,600,570,502 (constant)
Maximum transactions per second: 100,000 + capacity (proven 3,400+ tx / s)
It is noteworthy that this is a lightning-fast blockchain with a 1.5-second average block time and a throughput of 100,000 transactions per second (more than all credit card transactions around the world in aggregate).
The management of BitShares is controlled by the Decentralized Autonomous Company (DAC), which allows BitShares owners to contribute and ultimately decide on the future direction of BTS. This DAC works independently but in parallel with the source code base, which is developed and configured continuously.
Your wallet address is your username
This is much better than the long huge lines of letters and numbers that just require bad user experience and errors. Your username acts as your wallet (for example, your social media or google login). It is much easier to remember and type “john-smith”, then 21x9d8sv37sd6m282u4j2hg9h4orbjht2u98f3.
The BitShares platform has included numerous innovative features that are not found in other branches of the intellectual industry:
Pricing of Cryptocurrencies – SmartCoins provides freedom of cryptocurrency with dollar stability
SmartCoin is a cryptocurrency, its value is connected to the value of another asset, such as the US dollar or gold. SmartCoins always have 100% or more of its value, supported by the base currency of BitShares, BTS, with which they can be converted at any time at the exchange rate set by a reliable price feed. In all but the most extreme market conditions, SmartCoins is guaranteed to be worth at least a nominal value (and perhaps more, in some cases). Like any other cryptocurrency, SmartCoins are interchangeable, divisible and free from any restrictions.
Decentralized exchange of assets – fast and current trading platform
BitShares provides a high-performance decentralized exchange with all the features that you expect in the trading platform. It can handle the trading volume on the NASDAQ while making orders for the second, which you send them. Who needs risky centralized exchanges with such activities on a decentralized exchange?
Industrial performance and scalability.
Graphene is capable of 100,000 TPS when we pay for the network to work with it.
High-performance blockchain technology is required for cryptresources and intelligent contract platforms to provide a viable alternative to existing financial platforms. BitShares is designed from the ground up to handle more transactions every second than VISA and MasterCard. With delegated evidence of a bet, the BitShares network can confirm transactions on average in 1 second, limited only by the speed of light.
Allow dynamic account – manage the corporate environment
BitShares develops permissions for people, not around cryptography, which simplifies their use. Each account can be controlled by any weighted combination of other accounts and private keys. This creates a hierarchical structure that reflects the ways in which permissions are organized in real life and simplifies multi-user control of funds. Multiuser control is the biggest contribution to security, and with proper use, it can virtually eliminate the risk of theft due to hacking.
Repetitive and scheduled payments – Flexible withdrawals
BitShares is the first intelligent contract platform with built-in support for permanent payments and subscription payments. This feature allows users to allow third sides to withdraw from their accounts within certain limits. This is a convenient way to “install it and forget it” for monthly invoices and subscriptions.
Referral rewards program – Growth of network due to rewards for adoption
BitShares has an advanced referral program built directly into its software. Financial networks get their value primarily from the network effect: more people in one network increases the value of this network for everyone. BitShares gets benefits in this, rewarding those who sign up new users and doing it in a completely transparent and automatic way.
Assets issued by the user – Regulatory issuance of cryptanalysis
The BitShares platform provides a feature known as “user assets” that helps simplify profitable business models for certain types of services. The term refers to the type of a custom token registered on a platform that users can store and trade with certain restrictions. The creator of such an asset publicly names, describes and distributes its tokens and can indicate individual requirements, such as an approved whitepaper of accounts authorized to store tokens, or associated trade and transfer fees.
Financing of projects approved by stakeholders is a self-sufficient financing model
BitShares is designed for self-financing and self-sufficiency, allowing interested parties to send to where the blocking reserves are spent. BitShares has a reserve pool of 1.2 billion BTS (about 8 million US dollars), which automatically grows as the collection of transactions is raised and the share price is rising. Every day, the block has the right to spend up to 432,000 BTS (about $ 77,000 per month), which is enough to hire a small team to maintain the network for many years, even without price increases.
Portable personal accounts – Simple and secure transactions
Named accounts allow users to easily remember and report their account information. We do not use IP addresses to browse the Internet or numbers to identify our email, so why do not we have usable account names for our financial transactions?
A delegated consensus on equity status is a reliable and flexible consensus protocol
Delegated Proof of Demand (DPOS) is the fastest, most efficient, most decentralized and most flexible consensus model. DPOS uses the power of voting with the participation of stakeholders to resolve consensus issues at a fair and democratic level. All network parameters, from payment schedules to transaction intervals and sizes, can be configured through select delegates. The deterministic choice of block manufacturers allows you to confirm transactions on average in 1 second. Perhaps most importantly, the consensus protocol is designed to protect all participants from unwanted regulatory interventions.
Ultimately, BitShares leads a package with exemplary thinking and architecture
BitShares is a decentralized network, protocol and industry platform – based on the delegated proof of rate algorithm (DPoS) and Graphene (backend engine Steemit), capable of processing 100,000 transactions per second.
BitShares offers a variety of decentralized financial services – the issuance of smart coin bits, including market-linked assets (MPA), and other pairs derived from cryptography, from recognized commodity assets (eg Gold, Oil, S & P 500)
The delegated proof of transaction (DPoS) algorithm adds a management layer. Based on the traditional model Proof of Stake, which increases and produces coins based on the holding company.
Despite all the above risks and problems, the team persists, grows and constantly ironing kinks. Their services are simply stunning (despite certain risks and pitfalls). I personally used their DEX and I think it’s quite intuitive, smooth and fast.
As the platform matures and proves itself, it will attract interest from FinTech and financial services players.
I tend to show increased interest in projects that contribute to decentralization and actions in real time. This ICO craze is simply nauseating at times (seriously, Paris Hilton?! LOL), and space badly needs high-quality initiatives.
Waiting for confidence in the market, dilution of tokens, hidden hackers, hidden rules and other unforeseen traps await us. (And, frankly, many “coins”, maybe even the majority, will not make it long-term).
That is why it is very important that we pay attention to helping to create meaningful long-term target communities and projects.
I believe that BitShares is one of them.
- Useful links
June 2, 2013 businessman Dan “Bytemaster” Larimer published his original BitShares document on bitcointalk.org:
Creation of Fiat / Bitcoin exchange without Fiat deposits
Over the next five weeks, Bytemaster participated in a series of vigorous discussions at the forum, defending and refining the concept. There, he met with Charles Hoskinson, who helped verify this idea and develop a business plan. Charles introduced the plan to Li Xiaolai in China, which agreed to finance development. On Independence Day, July 4, 2013, Invictus Innovations was included in the state of Virginia.
Daniel Larimer, the founder of BitShares.
My mission in life is to find free-market solutions for ensuring life, freedom, and property for all.
Larimer is a native of Colorado, who spent his formative years in Florida and Virginia, the latter of which served as his home base after entering computer science from Virginia Tech in 2003. After studying computer programming from his father when he was still in elementary school, he was almost an innate technician/entrepreneur, leaning towards business venture business from college when he joined a handful of friends to launch a virtual reality company.
The first addition to the exchanges: July 21, 2014
Price: 1 (BTS) = 0.013 $