BitShares cryptocurrency review
BitShares Digital Coin (BTS) used to be commonly known as ProtoShares (PTS). This is a peer-to-peer cryptocurrency network that has open source code and a consensus mechanism based on the Graphene algorithm.
Cryptocurrency BTS is an investment tool to increase capital. It is widely used in a large number of decentralized financial services. For example, in smart contacts, creating derivatives, exchanges, and many others.
History and Team
The birth of Bitshares can be considered June 2, 2013, when Dan Larimer took the first steps to create fiat / bitcoin for the possibility of making no deposit cash exchanges, leaving bail coins of another crypto.
The new opportunity caused a wave of discussions in various forums. The concept found supporters and opponents. But this was only the first step. Taking advantage of the general interest, Larimer presents his idea to Charlie Hoskinson, one of the founders of Ethereum. Hoskinson provides valuable advice on further development and the creation of a business plan.
The finished plan was presented to the Chinese bitcoin tycoon Li Hialai. He agrees to start financing development. Invictus Innovations opens on July 4, and in October 2013, the presentation of the BitShares concept begins at a conference in Atlanta.
The next stage in the development of cryptocurrency was Larimer’s desire to make Bitshares X – a platform with the ability to create a business, something like a decentralized bank. Bitshares X – is the desire to use all possible innovative technical capabilities in one platform.
At the same time, the developers were well aware that the development of such a scale would require a lot of time, effort and financial investment. That is why the Bitcoin clone BitShares PTS (better known as ProtoShares) was created. In the future, Dan Larimer plans to upgrade tokens to Bitshares. A similar plan allowed not to lose existing users who were able to start mining and exchange. PTS began operations on November 5, 2013.
Invention of DPOS
But already at the initial stage of work, some shortcomings in mining are revealed. The founder of Bitshares has the idea of mining, which centralizes the network in regions with a cheap price for electricity.
In order to eliminate this situation, he announces the next version of the project, using not Proof of Work, but Proof of Stake. Thanks to the innovation, everyone was able to support the system of their personal computer.
But this did not become the final stage of modernization. Larimer December 8, 2013 introduces a completely new consensus algorithm – Delegated Proof Of Stake. It was launched on BitShares 11 days after the presentation.
Almost two years later, on October 13, 2015, Bitshares was updated. Version 2.0 is now known as Graphene.
What is Bitshares
The presented platform is a universal project, which includes at the same time many different features. Bitshares is:
1. Banking structure.
2. The blockchain platform.
3. The community.
4. Digital coin.
5. An exchange where you can sell and buy other coins.
7. Distributed database.
8. Fast, universal payment network.
The main technical features of the crypt include:
– the presence of a concensus algorithm – DPOS protocol;
– the average time period for creating a block is one and a half seconds (maximum – 3 seconds);
– for the block, the miner receives a reward – 1 BitShares;
– as of September 2017, the non-reserve fund of BTS consisted of more than two and a half billion coins;
– the reserve fund for the same period amounted to more than a billion coins;
– the maximum quantity is 3 600 570 502 coins;
– The maximum possible transaction per second is more than one hundred thousand.
How to mine BitShares
When developing the project, Larimer was repeatedly convinced that the mining concept is imperfect and a number of improvements are needed to change the situation. Dan claimed that Proof-of-work is not the best algorithm, moreover, he is able to completely centralize the network, provided that it is possible to obtain sources of cheap electricity. Moreover, he said, the use of PoW closes the possibility of profitable mining for many ordinary network users.
This is the reason for the completely different principle of obtaining Bitshares. You don’t have to buy a powerful graphics card or use your PC. BTS provides the user with many advantages and positive factors:
1. The presence of assets is already an opportunity to generate income. The reason for this is the huge potential of the main financial services industry.
2. Everyone can receive income from transactions with stabilized smart currencies, provided that Bitshares is attached to them. This principle is familiar to those who are familiar with the currency pair trading algorithm. That is, earnings depend on the difference in existing courses.
3. The developers believe that the main benefit of BTS is a reduced commission, operational confirmation and system stability.
When working with crypto, the miner in the system is called a delegate. Its main task is to officially confirm the change in the global accessible magazine. In fact, every person who has at their disposal a cryptocurrency can receive delegate status.
Smart Coins BitShares
The issuance of collateralized market bonds and stable bit assets was a real breakthrough in the financial system. That is, the creation of BitShares smart coins is a real challenge to banks. The basis for them was cryptosystem assets that track real-world assets with the transfer of their bitUSD. This is possible thanks to the support of the BitShares community of many data collection systems and other information sources.
The Smart Coin token has at its disposal at least 200 percent of the declared coin price. It is possible to convert it to BTS, for this an intelligent contract based on the blockchain is used. According to the creators, Smart Coin is a token that algorithmically concentrates its value accurate to a specific asset. For example, it can be a dollar, gold or a share of a certain company.
Its price on the BitShares platform is programmed with full support for the main coin of BTS. These tokens enable the user to automatically convert to BTS coins at any second, without resorting to specialized exchange services.
The purpose of creating smart coins (bitAssets)
BitAssets (‘smart’ coins ‘) were created for certain purposes, which leads to the presence of a number of advantages and distinctive characteristics:
– smart coins have a predictable stable price and reduced volatility;
– are a relatively reliable solution when predicting changes in the token exchange rate over a long period of time;
– can serve as a unit of accounting, distinctive from assets that have the potential to increase or decrease income;
– This is an opportunity to conclude safe transactions subject to instability in the digital coin market, exchange rate fluctuations and other factors. Smart coins are a kind of contract concluded by the buyer and seller in order to stabilize the price of existing assets and further increase the rate of BTS.
Where to store Bitshares
Bitshares is a broadly targeted system, including a decentralized exchange and wallet, which allows you to control the financial flows of each member of the community. Also, with the help of a wallet, you can send tokens around the world. The platform has the entire list of necessary tools and functions that are necessary for a professional trader with digital coins.
Types of Wallets for Bitshares
There are three types of wallets for storing cryptocurrency on the portal:
1. Open-ledger – is one of the largest cryptocurrency exchanges in Europe from CCEDK. It is a kind of bridge connecting fiat currencies and digital coins. This exchange allows you to create your own coin or open a business on the Bitshares Blockchain.
2. Another option is to open a wallet at 2-Bitshares Munich. The system runs on Android and has all the necessary features. Designed and maintained by Bitshares.munich.de. You can find the application on Google Play.
3. There is also the possibility of offline storage without connecting to the Internet thanks to 3-Paper wallet (also known as ‘Cold Storage’). The principle of use without access to the network allows you to provide the maximum level of protection for user assets.
BitShares cryptocurrency: prospects and forecasts
The investment attractiveness of BTS is directly related to the relevance of the BitShares platform. Consider its strengths and weaknesses.
- Good specifications. The throughput is 100 thousand transactions per second, it takes 2 seconds to confirm the transaction. Commission payments are considered one of the lowest, but they are unstable and depend on the activity of delegates.
- Multifunctionality. At BitShares you can make payments, launch DAC, digitize assets, take and give money on bail. For all operations, internal tokens are used.
- Availability of a secure platform for the exchange of digital and fiat currencies. Lack of access to user assets closes DEX from financial regulators.
- High level of protection. Confidential Transaction technology hides the sums of the inputs and outputs of each operation, Stealth Addresses encrypts the recipient data. An attack of 51% is almost impossible due to DPoS mining with temporary smart contracts.
- Well-known founders and partners. Dan Larimer and Charles Hoskinson are authoritative figures in the crypto community. Apple, Billionherocampaign, AriseBank and other companies with which developers collaborate have a huge influence in the business world.
- Technical obsolescence. All serious decisions were implemented until 2016. Since then, no significant changes have been observed.
- Lack of a roadmap. The developers prescribed a road map for only two years (2014-2016), completed the planned points and did not report on their plans anymore.
- A tarnished reputation. Due to the suspicion of repeated pumping, many traders are negative about BTS and do not risk working with a coin.
- The presence of successful competitors. The main opponent of BitShares is the Waves cryptocurrency, whose market indicators are an order of magnitude higher.
- Focus on a stable course. Larimer initially spoke of a practical currency that is not subject to strong price spikes. And although the condition is not always met, altcoin does not differ in high volatility.