BitShares

BitShares is an open source decentralized exchange designed for the trading of cryptocurrencies utilizing a delegated proof-of-stake consensus (DPOS). BitShares was created by Dan Larimer in 2013, and assumed its existing form in October, 2015.

It is organized as a Decentralized Autonomous Organization (DAO), and has all the features typically associated with fiat currency based trading platforms. Features of Bitshares include: DPoS consensus; customizable account permissions; authorized transactions; user-issued blockchain assets; ability to create and extend functionality of built-in and/or external dApps; human-readable account names with public key registration; quick transaction processing speeds (average of 1.5 seconds); low fees with 80% vesting cash back for lifetime members; ability to issue recurring and schedules payments; and a high level of security through delegated Proof-of-Stake (DPOS).

BitShares was created by an Daniel Larimer. It is described as a cryptocurrency platform, a digital currency, or a digital exchange. The Financial Times in 2016 pointed out BitShares difficulty to operate its DAO due to conflicting interests of its voting members. Bitshares were seized (along with Bitcoin and other digital currencies), when the U.S. Securities and Exchange Commission in 2018 seized the assets of AriseBank for operating an illegal Initial coin offering. Bitshares was initially referred to as ProtoShares. Remittance company Bitspark based in Hong Kong raised 1.4 Million USD by doing an Initial coin offering on the bitshares platform.

BitShares is a public, blockchain-based, open-source, real-time trading platform. It provides a decentralized asset exchange, similar to the NYSE but for cryptocurrencies, without the need to trust a centralized fund. BitShares is backed by the "BTS" cryptocurrency, which is used for network activity fees or collateral.

This platform was designed by American programmer and entrepreneur Dan Larimer and launched in July 2014.

Story

Start

On June 2, 2013, entrepreneur Dan Larimer paved the way for a fiat/bitcoin exchange without a cash deposit by pledging another cryptocurrency.

While this concept was discussed on various forums, he presented his ideas to Charlie Hoskinson, the co-founder of the Ethereum network, who helped finalize the idea and create a business plan. Together, they presented the plan to Li Hialai, a Chinese bitcoin magnate who agreed to fund the development. By July 4, they had founded Invictus Innovations. A few months later, in October 2013, Hoskinson and Larimer presented the BitShares concept at a bitcoin conference in Atlanta.

ProtoShares

Larimer aims to create Bitshares X, a blockchain platform for creating businesses like a decentralized bank and exchange, seeking to bring technical innovation (like Bitcoin and Ethereum). He understands that development takes time, and creates the BitShares PTS (known as ProtoShares), a bitcoin clone whose tokens are scheduled to be later upgraded to Bitshares. In this way, early adopters will be involved in mining and exchange. The first PTS block was mined on November 5, 2013.

Invention of DPOS (Delegated Proof of Stake)

A few weeks later, Daniel concludes that mining has a downside. He argues that mining will eventually centralize the network in countries with cheap electricity.

A month later, in a new release of ProtoShares, he announced that in the next version of the project, instead of Proof-of-work, Proof-of-stake will be used, so that anyone can use their home computer to support the network.

On December 8, 2013, Larimer introduced a new consensus algorithm, Delegated Proof-of-stake, which was launched on BitShares on the 19th of the same month.[1]

Bitshares 2.0

On October 13, 2015, Bitshares updated to version 2.0 now known as Graphene.[2]

Key Benefits

Speed ​​and scalability

The developers claim that BitShares is capable of processing 100,000 transactions per second and even more if optimization is applied. In comparison, VISA, one of the largest financial providers in the world, processes about 2000 transactions per second (maximum 24,000 transactions per second).[3][4][5]

Decentralized exchange service

BitShares allows users to trade on a fully decentralized online digital currency exchange service. Traditional cryptocurrency exchange services rely on personal servers to store and control all funds, although losses due to theft (Mt.Gox), hacking (Bitfinex), or shutdown (BTC-E) do occur. The idea of ​​a decentralized service is to give access to personal assets only to the users themselves using private keys. Since users have full control over their accounts, there is no point in attacking the network.[6][7][3]

Dynamic Account Permissions

For all accounts on the platform, you can set multiple rights of other accounts, creating a hierarchy of rights that exists in real organizations. Thus, the actions of the account can be controlled by several people.

Referral reward program

The blockchain has a built-in referral program for attracting parties. Part of the commission when creating a new user goes to the referral who attracted these people.[8][9]

Release of custom assets

Users on BitShares can create their own custom tokens, for example, to crowdfund their business or startup. These tokens can be traded or held as a permanent asset. Such a token must have a unique name, description, initial and maximum issued quantity, and may also contain a fee in favor of the trading platform and much more[10].

Decentralized Assets

Appearance of BitShares 3.1.190618

Decentralized Assets or “Smartcoins” are tokens whose price is calculated and supplied to the blockchain and denominated in the BTS token. An example of a smartcoin would be the US dollar, a precious metal, or a company's stock. Anyone can borrow such tokens from the blockchain, but in return must provide collateral in the form of BTS. After that, it can be traded, and anyone can request the exchange of smartcoin for the equivalent in BTS. Thus, smartcoin has a value regardless of origin, and has a fixed value[10].

Submission and funding of proposals

BitShares has a reserve pool that stores the proceeds from transactions on the blockchain. BTS holders can make proposals to finance the project from this pool. The proposal will only be approved if approved by a majority of voters.[11]

Account names

The wallet address on the BitShares platform uses readable names chosen by the user, and not a set of poorly remembered characters, as in other blockchains.

Delegated proof of stake

Delegation of Proof of Stake (DPOS) is a blockchain consensus model. It uses a voting system to control blockchain parameters such as fees, block intervals, node numbers for block production, and more. This contributes to the rapid achievement of consensus within one second.

Block producing nodes are called “verifiers”, they collect all transactions to form a block, send this block to others and add it to the blockchain.[12]

BitShares is a public, blockchain-based, open-source, real-time trading platform. It provides a decentralized asset exchange, similar to the NYSE but for cryptocurrencies, without the need to trust a centralized fund. BitShares is backed by the "BTS" cryptocurrency, which is used for network activity fees or collateral.

This platform was designed by American programmer and entrepreneur Dan Larimer and launched in July 2014.

Story

Start

On June 2, 2013, entrepreneur Dan Larimer paved the way for a fiat/bitcoin exchange without a cash deposit by pledging another cryptocurrency.

While this concept was discussed on various forums, he presented his ideas to Charlie Hoskinson, the co-founder of the Ethereum network, who helped finalize the idea and create a business plan. Together, they presented the plan to Li Hialai, a Chinese bitcoin magnate who agreed to fund the development. By July 4, they had founded Invictus Innovations. A few months later, in October 2013, Hoskinson and Larimer presented the BitShares concept at a bitcoin conference in Atlanta.

ProtoShares

Larimer aims to create Bitshares X, a blockchain platform for creating businesses like a decentralized bank and exchange, seeking to bring technical innovation (like Bitcoin and Ethereum). He understands that development takes time, and creates the BitShares PTS (known as ProtoShares), a bitcoin clone whose tokens are scheduled to be later upgraded to Bitshares. In this way, early adopters will be involved in mining and exchange. The first PTS block was mined on November 5, 2013.

Invention of DPOS (Delegated Proof of Stake)

A few weeks later, Daniel concludes that mining has a downside. He argues that mining will eventually centralize the network in countries with cheap electricity.

A month later, in a new release of ProtoShares, he announced that in the next version of the project, instead of Proof-of-work, Proof-of-stake will be used, so that anyone can use their home computer to support the network.

On December 8, 2013, Larimer introduced a new consensus algorithm, Delegated Proof-of-stake, which was launched on BitShares on the 19th of the same month.[1]

Bitshares 2.0

On October 13, 2015, Bitshares updated to version 2.0 now known as Graphene.[2]

Key Benefits

Speed ​​and scalability

The developers claim that BitShares is capable of processing 100,000 transactions per second and even more if optimization is applied. In comparison, VISA, one of the largest financial providers in the world, processes about 2000 transactions per second (maximum 24,000 transactions per second).[3][4][5]

Decentralized exchange service

BitShares allows users to trade on a fully decentralized online digital currency exchange service. Traditional cryptocurrency exchange services rely on personal servers to store and control all funds, although losses due to theft (Mt.Gox), hacking (Bitfinex), or shutdown (BTC-E) do occur. The idea of ​​a decentralized service is to give access to personal assets only to the users themselves using private keys. Since users have full control over their accounts, there is no point in attacking the network.[6][7][3]

Dynamic Account Permissions

For all accounts on the platform, you can set multiple rights of other accounts, creating a hierarchy of rights that exists in real organizations. Thus, the actions of the account can be controlled by several people.

Referral reward program

The blockchain has a built-in referral program for attracting parties. Part of the commission when creating a new user goes to the referral who attracted these people.[8][9]

Release of custom assets

Users on BitShares can create their own custom tokens, for example, to crowdfund their business or startup. These tokens can be traded or held as a permanent asset. Such a token must have a unique name, description, initial and maximum issued quantity, and may also contain a fee in favor of the trading platform and much more[10].

Decentralized Assets

Appearance of BitShares 3.1.190618

Decentralized Assets or “Smartcoins” are tokens whose price is calculated and supplied to the blockchain and denominated in the BTS token. An example of a smartcoin would be the US dollar, a precious metal, or a company's stock. Anyone can borrow such tokens from the blockchain, but in return must provide collateral in the form of BTS. After that, it can be traded, and anyone can request the exchange of smartcoin for the equivalent in BTS. Thus, smartcoin has a value regardless of origin, and has a fixed value[10].

Submission and funding of proposals

BitShares has a reserve pool that stores the proceeds from transactions on the blockchain. BTS holders can make proposals to finance the project from this pool. The proposal will only be approved if approved by a majority of voters.[11]

Account names

The wallet address on the BitShares platform uses readable names chosen by the user, and not a set of poorly remembered characters, as in other blockchains.

Delegated proof of stake

Delegation of Proof of Stake (DPOS) is a blockchain consensus model. It uses a voting system to control blockchain parameters such as fees, block intervals, node numbers for block production, and more. This contributes to the rapid achievement of consensus within one second.

Block producing nodes are called “verifiers”, they collect all transactions to form a block, send this block to others and add it to the blockchain.[12]