Bitshares

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Discover Bitshares's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Bitshares?

BitShares (BTS) is a proof-of-stake (PoS) blockchain network that offers a decentralized exchange (DEX) and a utility token used for staking and voting. It allows users to peg digital assets to real-world assets, creating a market for nearly any asset to trade freely. The network is governed by a committee of elected individuals and businesses, and users can create their own tokens and participate in the decentralized exchange.

How is Bitshares used?

BitShares (BTS) is a cryptocurrency token used within the BitShares platform, an open-source, public, blockchain-based real-time financial platform. The primary aim of BitShares is to allow users to exchange cryptocurrencies without the involvement of third parties. BTS is used for several purposes:

  1. Transaction Fees: BTS is used to collect fees for network operations and as collateral for loans within the platform.

  2. Smartcoins: BTS is the core currency backing the value of Smartcoins, which are tokens that have their value algorithmically adjusted to that of some asset, such as the US Dollar or a precious metal. These Smartcoins can be automatically converted to BTS at any moment without the need to use an exchange.

  3. Stakeholder-Approved Project Funding: BTS is used to fund projects proposed by users and approved by the community through a voting system. The funds for these projects come from a reserve pool that collects transaction fees.

  1. Decentralized Autonomous Companies (DACs): BTS is used to create and manage DACs, which are companies that run without human involvement under the control of an incorruptible set of business rules. These rules are implemented as publicly auditable open source software distributed across the computers of their stakeholders.

  2. Custom Assets Issue: BTS allows users to generate their own coins, which can be traded or stored as a permanent asset. This feature supports various purposes, such as financing a startup or supporting a business.

  3. Voting: BTS holders have the right to vote for delegates who perform tasks and monitor the functionality of the platform. These delegates receive earnings from shareholders for their services.

Overall, BTS is a crucial component of the BitShares ecosystem, facilitating various financial transactions, governance, and decision-making processes within the platform.

How do I store Bitshares?

To store BitShares (BTS) tokens, you can use a variety of wallets designed specifically for this cryptocurrency. Here are some options:

Desktop Wallets
  • Official BitShares GUI Wallet: This is the official desktop wallet for BTS. It requires downloading the full blockchain, making it a more secure option. However, it only supports BTS and BTS tokens.
Mobile Wallets
  • Guarda Wallet: This mobile wallet supports 24 coins and ERC20 tokens, including BTS. It also features a built-in exchange but lacks two-factor authentication.
Web Wallets
  • Guarda Web Wallet: Similar to the mobile version, the Guarda web wallet supports multiple coins and tokens, including BTS. It also has a built-in exchange but lacks two-factor authentication.
  • Open Ledger Web Wallet: This web wallet is specifically designed for BTS and BTS tokens. It does not have two-factor authentication.
Hardware Wallets
  • Ledger Nano: This hardware wallet can be used to secure BTS tokens by storing them offline. It requires setting up an account and managing assets through the Ledger interface.

When choosing a wallet, consider factors such as compatibility, security features, and the range of supported cryptocurrencies. Always ensure you follow best practices for securing your wallet and keeping your private keys safe.

How to buy Bitshares?

To buy BitShares (BTS) tokens, follow these steps:

  1. Choose a Reliable Exchange: Select a trustworthy cryptocurrency exchange that supports BTS purchases. Popular options include Binance, Gate.io, HTX Global, and WazirX. Ensure the exchange accepts customers from your country and offers the necessary trading features for your needs.

  2. Create an Account: Register a free account on the chosen exchange. Provide the required personal information, including your name and email address. Complete the Know-Your-Customer (KYC) verification to increase withdrawal limits and unlock additional features.

  3. Add Funds: Deposit funds into your exchange account using a credit or debit card, bank transfer, or other supported payment methods. Some exchanges also allow depositing cryptocurrencies.

  1. Place a Buy Order: Navigate to the BTS trading page and place a buy order. Specify the amount of BTS you want to purchase and confirm the transaction. The BTS tokens will be credited to your exchange wallet.

  2. Store Your BTS: Transfer your BTS tokens to a secure wallet, such as a hardware wallet or a reputable software wallet, to ensure safe storage and control over your assets.

  3. Monitor Your Investment: Keep track of your BTS investment performance and adjust your strategy as needed.

Remember to research the exchange fees, security features, and supported currencies before making a purchase.

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History of Bitshares

BitShares, a decentralized blockchain-based platform, was first introduced in a white paper titled "A Peer-to-Peer Polymorphic Digital Asset Exchange" by Daniel Larimer, Charles Hoskinson, and Stan Larimer. The project was founded by Daniel Larimer of Invictus Innovations after receiving funding from Chinese venture capital firm BitFund.PE in 2013.

Early Development

The initial concept of BitShares was to create a fiat/Bitcoin exchange without fiat deposits by introducing a token backed by another token on the same blockchain. This idea was developed and refined through discussions on internet forums and presentations at conferences, including the Atlanta Bitcoin Conference in October 2013.

ProtoShares and the Shift to Delegated Proof of Stake

To involve early backers, Larimer created ProtoShares (PTS), a Bitcoin clone, which was later planned to be upgraded to BitShares. However, Larimer realized that the mining concept was flawed, leading to network centralization and high entry barriers. He then introduced Delegated Proof of Stake (DPoS) as a consensus algorithm, which was simpler and more accessible for users. This algorithm was used to build the BitShares platform, launched on July 19, 2014.

Evolution and Key Features

BitShares is designed to provide financial services similar to those offered by banks but in a decentralized manner. It includes a built-in decentralized asset exchange, allowing users to trade cryptocurrencies and other assets without relying on a central authority. The platform uses Smartcoins, which are tokens whose value is algorithmically adjusted to that of a specific asset, such as the US Dollar. These Smartcoins are fully backed by the core currency, BTS.

Key Players and Milestones
  • Daniel Larimer: Founder and developer of BitShares, also known for his work on Steemit and EOS.
  • Charles Hoskinson: Co-founder of Ethereum and early contributor to BitShares.
  • Stan Larimer: Co-author of the BitShares white paper.
  • Li Xiaolai: Chinese Bitcoin tycoon who funded the development of BitShares.

BitShares has been part of Microsoft Azure Blockchain as a Service since March 2016 and has continued to evolve, integrating support for the Graphene Protocol to improve transaction speed and scalability.

Current Status and Future

Today, BitShares operates as a decentralized exchange platform, offering fast and secure transactions. While it has its advantages, such as high security and decentralization, it also faces challenges, including usability issues and market volatility. The project aims to continue improving its transaction speed and scalability, with the goal of reaching 100,000 transactions per second in the future.

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How Bitshares works

BitShares (BTS) is a decentralized digital trading platform that operates on blockchain technology. It is designed to allow users to exchange cryptocurrencies without the involvement of third parties. The primary aim of BitShares is to provide a platform where users can convert real-world assets into digital tokens, which can then be traded, stored, or used as collateral.

Consensus Algorithm

BitShares uses the Delegated Proof of Stake (DPoS) consensus algorithm, which is different from the traditional Proof of Work (PoW) algorithm used by Bitcoin. In DPoS, users stake their BTS coins to elect witnesses who are responsible for validating transactions and creating new blocks. The more BTS a user stakes, the greater their voting power. This system ensures that the network is secure and efficient, as witnesses are incentivized to act honestly to maintain their reputation and receive rewards.

Witnesses

The witnesses on the BitShares network are responsible for processing and validating transactions. They are chosen by the BTS holders through a voting system. The number of witnesses can vary, but typically, there are around 20 to 50 active witnesses. These witnesses are rewarded with BTS coins for their services, which helps to maintain the network.

Block Generation

New blocks are generated every three seconds on the BitShares blockchain. Each block reward is 1 BTS, which translates to 1200 BTS per hour for the witnesses.

Smartcoins

BitShares allows users to create custom assets, known as Smartcoins. These tokens can be programmed to have their value pegged to real-world assets like the US dollar or gold. Smartcoins are fully backed by the BTS coin and can be automatically converted to BTS at any time.

Wallets

The official BitShares wallet is called DAX, which is a decentralized asset exchange platform. It is available in web, desktop, and mobile versions. The wallet allows users to store, send, and receive BTS coins, as well as participate in the governance of the network by voting for witnesses.

Trading

BitShares can be traded on various exchanges, including the BitShares platform itself. It is also available on other popular exchanges like Binance, where it can be traded with leverage.

Governance

BitShares has a decentralized governance system, where BTS holders can propose and vote on projects to improve the network. This system allows the platform to be self-sustaining and rely less on external funding.

Overall, BitShares is a unique cryptocurrency project that combines the features of a decentralized exchange, a blockchain-based platform, and a governance system, all powered by its native BTS coin.

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Bitshares's strengths

The token BitShares (BTS) has several strengths:

  • Decentralized Exchange: BitShares is a decentralized exchange (DEX) that allows users to trade digital assets without the need for intermediaries.
  • High Transaction Speed: The platform is built on the Graphene blockchain, which enables it to process up to 100,000 transactions per second, making it highly scalable.
  • Custom Assets: Users can create their own tokens, known as user-issued assets, which can be traded on the BitShares DEX.
  • Market Pegged Assets: BitShares allows users to create tokens pegged to real-world assets, such as currencies or commodities, providing a stable store of value.
  • SmartCoins: The platform offers SmartCoins, which are market-pegged assets backed by at least 100% of their value in BTS tokens, ensuring stability and collateralization.
  • Governance: The BitShares network is governed by a committee of elected individuals and businesses, ensuring that the direction of development is managed by the community.
  • Security: The use of a delegated Proof-of-Stake (DPoS) consensus algorithm ensures that the network is secure and less energy-intensive compared to traditional Proof-of-Work (PoW) algorithms.
  • Low Transaction Fees: BitShares has low transaction fees, making it an attractive option for users.
  • No Trading Limits: There are no trading limits on the platform, allowing users to trade freely.
  • Anonymity: Users can maintain their privacy as no personal data is required, and they have full control over their private keys.
  • Scalability and Liquidity: The platform offers high scalability and liquidity, ensuring that users can easily buy and sell assets.
  • Security and Transparency: The decentralized nature of the platform ensures that there is no single point of failure, and all transactions are transparent and secure.

Bitshares's risks

BitShares (BTS) carries significant financial risks, primarily due to its volatility and the inherent nature of the cryptocurrency market. Here are some key risks to consider:

  1. Market Volatility: The price of BTS can fluctuate rapidly and unpredictably, leading to substantial losses if not managed properly. This volatility can be influenced by various factors, including global economic conditions, regulatory changes, and market sentiment.

  2. Risk Gauge Rank: The risk gauge rank for BTS has been reported to be moderate, indicating that traders should be cautious when investing in this cryptocurrency. This ranking can change over time, but it highlights the need for careful risk assessment.

  3. Leverage and CFD Trading Risks: Engaging in leverage and CFD (Contract for Difference) trading with BTS can amplify both gains and losses. This type of trading involves significant risks and can result in losses exceeding the initial investment.

  1. Investment Goals and Risk Tolerance: The suitability of BTS as an investment depends on an individual's financial goals and risk tolerance. Investors must carefully evaluate their own risk appetite and investment objectives before investing in BTS.

  2. Regulatory Uncertainty: The regulatory environment for cryptocurrencies is still evolving and can impact the value of BTS. Changes in regulations or laws can affect the viability and adoption of BTS, leading to potential losses.

  3. Technical Risks: As a decentralized platform, BTS relies on its blockchain technology and smart contracts. Technical issues, such as security breaches or network congestion, can negatively impact the value of BTS.

It is essential for investors to thoroughly understand these risks and conduct their own research before making investment decisions in BitShares (BTS).

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Did Bitshares raise funds?

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Bitshares’s team

  • Daniel Larimer: Founder of BitShares, known as "Bytemaster." He is a software programmer and crypto entrepreneur who developed the Delegated Proof of Stake consensus algorithm and the Graphene blockchain technology.
  • Charles Hoskinson: Co-founder of Ethereum, participated in the development of BitShares. He helped vet the idea and develop a business plan.
  • Milos Preocanin (Digital Lucifer): Architect behind the new corporate structure of BitShares, involved in discussions regarding trading profits and equity markets opportunities.
  • Ratchaphol Pattanasakpaiboon: Managing Director and Majority Shareholder of BitShares Management Group Limited.
  • Kevin Job: Manager and Shareholder of BitShares Management Group Limited.
  • Pattama Budyak: Shareholder of BitShares Management Group Limited.
  • Freelancer Developers: A number of freelancers from around the world work on the project, with no fixed team of developers.

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