How Bitshares (BTS) Works & The Delegated Proof of Stake

If there’s something that people are looking forward to in the crypto currency world is the progression from the tradition centralized system to the new and fair decentralized one. By virtue of the fast moving technological advancements all this has been made possible through the introduction of a few crypto currencies that comply by the decentralization philosophy.

By the introduction of Bitshares (BTS), which is an open-source, decentralized and real-time platform for financial transaction, this dream is not so much far fetched. This is basically a blockchain that provides a platform for asset exchanges for the cryptos. It is ideal for any crypto trader out there looking for suitable platform.

In that case, this article will be aimed at analyzing everything you ever wanted to know about Bitshares. From the history and founders, to its usage, market performance, wallets and their features among other things.

History and Founders of Bitshares

In June 2013, an entrepreneur by the name Dan Larimer discovered a clever way of a somewhat fiat or Bitcoin exchange which did not necessarily need fiat deposits. To achieve this, he introduced a token system backed by another token on the same blockchain. He shared and discussed his ideas with other crypto enthusiasts in the crypto market.

During this time, he introduced his ideas to the co-founder of Ethereum, Charles Hoskinson who helped him vet this idea as well as develop an appropriate business plan. The two collaborated and later introduced the ideas to a Chinese tycoon of the Bitcoin by the name, Li Xiaolai who later agreed to fund the project. Later that year in July, they founded the Inviticus Innovations company. This was their stepping stone and just a few months later, Latimer and Hoskinson presented this idea of Bitshares to the Antlanta Bitcoin Conference.

In 2014, Bitshares was officially launched and it managed to raise an equivalent of about 5904 BTC, basically in Bitcoin. As well, 400 BTC which is worth around 415,000 PTN (Proton shares). At this time the Bitshares was worth around $3.6 Million.

Understanding Bitshares

Bitshares is basically a brand used by the open source software which is based on the blockchain technology of the Bitcoin. All in all, it is so different from the Bitcoin. In that, Bitshares can be used to launch the Decentralized Autonomous Companies (DAO) which issue produce profits, shares as well as distribute profits to its shareholders.

The very first Decentralized Autonomous Company which was launched by this protocol was known as BitsharesX, which was a decentralized exchange for assets in Hong Kong. In the beginning, the Bitshares was launched under the name; Protoshares which was later modified to Bitshares in 2014. Several products were merged in during that time.

Features of Bitshares

  • Crypto currencies which have price stability – The smart contracts used provide ultimate freedom to the crypto currencies which have the stability that can be matched to the dollar’s.
  • The exchange is a Decentralized Asset – This means that the trading platform is fast enough and has high liquidity.
  • It has high industrial performance as well as the needed scalability – It can accommodate over 100,000 transactions per every second.
  • Flexibity – The withdrawal permissions are flexible enough
  • Referral reward system – It has the referral rewards program. This enhances the overall growth of this network through enticing the users with rewards
  • Payments – The payments are scheduled and recurrent
  • Permissions – The accounts permissions are dynamic. This helps to manage the corporate environment of this network
  • DPOS – It operates under the Delegated Consensus of Proof of Stake
  • The named accounts can be transferred easily
  • It has both the robust and flexible protocol for consensus

Technological Features of Bitshares

Delegated Proof of Stake (DPOS) – The Bitshares Delegated Proof of Stake prevents the negative impacts that can be caused by a centralized system. They use what they call Witnesses which are formally known as Delegates. The Delegates are expected to sign the blocks which are then voted on by the network users as per every transaction made.

This decentralized voting process is more democratic than most systems. Instead of the DPOS majorly concentrating on eliminating the general need for trust, it works to ensure that all the delegates who have been appointed to sign this block on the networks behalf do so effectively without any biasness.

The fact that the need for confirmation is reduced, the number of times transactions can be done is increased. The trustee’s nodes are selected by the users of that network therefore there is no need to put in place artificial encumbrance in order to slow down the process of signing the blocks.

The Smart Contracts of Bitshares – These are the contracts which are majorly executed on the chain. Unlike on other networks, Bitshares contracts can only be installed by upgrading this network. The hardforking of Bitshares is much easier than most because all you have to do is present the idea to the relevant shareholders. After approving your code, the network can have a shift over in seconds. The algorithm used is SHA-512 and the proof type is the proof of stake.

Future of Bitshares

BTS is designed and built on the Graphene high performance blockchain. This means that it has the capability of maintaining its current speed of transactions which is 3 seconds, achieving over 100,000 transactions per second in the near future. This is an incredibly great performance which will realize the dream of taking the traditional fiat platforms to the banking sectors.

Bitshares has the coveted multiplicity feature. In that, it can be a software, a ledger, a network, an exchange, a bank, a currency, community and still a country. This is what we call a small town in the global scalability.

Bitshares Wallets

Bitshares can be stored in:

  • Trade mobile wallets
  • Open ledger web wallets
  • Desktop wallets

To sum it up, Bitshares (BTS) has proved to be one of the best realizations to decentralized, open, scalable platform that uses smart contracts and financial tools. It is such a self-sustaining organization that finds and develops all its operations effectively. It has pioneered the Decentralized Autonomous Corporations hence has made its way to the free market. This is quite promising and soon enough, Bitshares will assume its rightful position in the crypto-economy.

Collins Valentin

Collins is a blockchain enthusiast, who spends his time between documenting the blockchain revolution in Africa, and writing the latest on the cryptocurrency space. Email: editor.news@blockpublisher.com

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