Digital Currency

BitShares (BTS)

BitShares built a blockchain based trading floor to be the NASDAQ for all future blockchain based solutions. Started by Dan Larimer after the Mt. Gox hack that crippled the cryptocurrency community, BitShares offers a service that matches willing buyers and sellers of financial instruments and assets. 

BitShares introduced BitAssets, a cryptocurrency whose value is associated with another asset such as the USD, EUR, or gold.Thus, ensuring that 1bitUSD will always be at LEAST $1 USD. 

BitShares are crypto-equity, meaning they pay dividends from transaction fees, resulting in the creation of new financial assets, such as BitUSD. 

How is this beneficial?

Currently, if you make a purchase using Bitcoin, the company who accepted that form of payment must immediately convert them back to USD as the value of Bitcoin and other cryptocurrency rapidly changes. The high volatility of Bitcoin makes it hard for consumers and businesses to treat Bitcoin as an everyday currency. 

BitShares creates a stable cryptocurrency market as it is representative of existing assets.

What is a Delegated Proof of Stake (DPOS)?

BitShare uses Delegated Proof of Stake to achieve consensus. This allows for a democratic voting system in which the ownership of one coin, counts for one vote. Voting activities include things such as fee schedules, block intervals and transaction sizes. Thus, the more coins you own the more voting power you have.

DPOS was created to achieve consensus faster and more efficiently than Proof of Work (PoW). People within the cryptocurrency community vote for a “Witnesses” to secure their computer network. The top 20 Witnesses are then compensated for their efforts. As more people join the network, the competition becomes increasingly challenging as more and more individuals strive to be a Witness. Therefore, Witnesses must adhere to the majority in order to stay in power and those who do not will quickly be replaced.