What is BitShares Coin? Complete Beginner Guide

/What is BitShares Coin? Complete Beginner Guide

What is BitShares Coin? Complete Beginner Guide 2018-02-22T15:17:23+00:00

Discover BitShares

BitShares are a common concept to come across when dealing with cryptocurrency. BitShares (with BTS as symbol) was formerly referred to as ProtoShares (PTS).

BitShares was created in 2014 by Dan Larimer, a visionary, also known as Byte master, the co-founder of Cryptonomex, Steemit, and EOS.

The essence of developing BitShares crypto raised from the need to curb the glaring inaccessibility of financial services worldwide. Bit Shares curb these challenge by providing a wide variety of financial services in a decentralized way. The BitShares platform has been in operation for several years and in this article, we focus on what it is all about with the aim of understanding what it is all about and how it addresses the problem of widespread inaccessibility of financial services.

The use and application of BitShares are based on graphene, which is an open source C++ type of blockchain implementation, whose role is to act as a mechanism for consensus.

BitShares operate as equities rather than purist currencies because the BTS tokens aka the Bitshare cryptocurrency can be used as a collateral for wide range financial services such as decentralized exchanges, currency rails, banking and smart contracts.

BitShares are among the top cryptocurrency by market caps that are not mineable.

This real-time financial platform makes it possible to trade cryptocurrencies without having to leave the blockchain. BitShares has managed to create a currency exchange platform that is built on the blockchain as a means of stabilizing the investments of their users who initially had to convert the cryptocurrencies to the US dollar or Euro among other fiat currencies.

The BitShares blockchain platform gives users to privilege convert the cryptocurrencies to more stable assets by converting the cryptocurrency coins to another cryptocurrency which has value tied to a real-life asset, for example, the BitUSD has its worth tied to the value of the US dollar. The BitShare platform is unique from the other cryptocurrencies in that it is free of counterparty risk while still allowing for the concept of a loan backed by collateral. To achieve this function requires the software protocol and network to secure collateral and carry out settlement operations. Unlike other cryptocurrencies, bit assets are less volatile.

Pros of BitShares

  • It allows for the decentralized exchange during buying and selling.
  • Allows for fast completion of transactions since it can handle tens of thousands transactions per second.
  • It makes it possible to create smart coins and user-issued assets related to the Wave’s custom voucher.

Cons of Bitshares

  • There is a declining interest of the developer.
  • The main developer left BitShares to promote Steem.

BitShares Technical details

The consensus algorithm is the delegated proof of stake DPOS.

It has a block time of 1.5 on the average and a maximum of 3 seconds.

The block reward is 1 BTS (obtained from the reserve pool).

Coins available in the reverse fund totaled to 2,599,900,000 BTS as at 30th September 2017.

Coins available in the reserve fund totaled to 1,000,668,097 BTS as of 30th September 2017.

Maximum available remain at a constant 3,600,570,502 BTS.

Maximum transaction rate has been potentially been set at more than 100,000 transactions per second. Proven transactions total up to 3400 transactions per second.

It is worthy to note that the technology behind BitShares has a potential of handling numerous transactions at a go- 100,000 transactions per second and this is far much higher than all the credit card transactions in the world.

What is grapevine?

BitShares deploys the grapevine technology. As a result of the application of grapevine technology, BitShares is capable of handling about one hundred thousand transactions per second. It also provides the option of setting up payments that recur and scheduling them- a feature not prominent in cryptocurrencies including bitcoins at the moment but is made possible in BitShares via this technology.

What makes BitShares special?

  • Fast, efficient and scalable– BitShares is developed to be able to be fast, scalable and efficient in handling tens of thousands of transactions per second that are characteristic of a decentralized exchange.
  • One’s wallet is also their username- The advantage of these form is that it utilizes the wallet address as username rather than a long combination of numbers and letters. The username is the wallet address making it easier for the users to remember it during logins.
  • They provide stable smart coins known as bit assets.
    • The BitShares have a predictably stable price and hence reduced volatility
    • There is a relatively reliable method of calculating the future value of a token in BitShares.
  • Delegated proof of risk and governance– these approach eliminates the traditional need to have the traditional Proof of Work which is energy consuming.
  • With BitShares it is possible to trade a variety of assets besides the native crypto coin. For example; the under-issued assets and smart coins. Therefore, smart coins such as the bitUSD, bitCNY and more, are able to track the counterparts’ value to ensure that 1bitUSD will have a value of 1 US dollar today, a week or month or even year from today. This characteristic helps the users to enjoy the merits if a blockchain network of payment without exposure to the volatility associated with the disruptive stage of development.
  • There is the possibility of self-funded development– through the BitShares, self-funded digital growth has been made possible. The technology supporting this platform makes it possible for the shareholders to vote three distinct types of employees; the witnesses, workers, and delegates. It is the first cryptocurrency blockchain to make it possible to hire own employees in a manner that is completely decentralized and with each shareholder having a say in the process.

BitShares versus Bitcoin

  • BitShares is defined as a platform for industrial-grade financial blockchain smart contracts.
  • One point of distinction between the BitShare’s block Chan and bitcoin’s is that the former has the capability to store transactions while the second is capable of storing smart contracts and more.
  • It is established by the fact, that the bitcoin price is too great for an entry. In possession of 600 dollars, one can only have 0.1 bitcoin as compared to the 12,000 BitShares which indicates a staggering difference between the two cryptocurrency forms.
  • Perditions indicate that the value of BitShares is capable of growing and will exponentially increase in the coming few years. Similar to the evolution process of the bitcoins, it is expected that the BitShare will have its breakthrough soon.
  • The bitcoin is an already established cryptocurrency with numerous holders and users hence termed as the leading cryptocurrency. It is certain that the bitcoin is at its peak and even if the bitcoin price continues to grow, it can only increase at a rate of 10% monthly.
  • Unlike the bitcoins, the main goal of BitShares is to become a fully-fledged system of exchange with value tokens such as BitGOLD and BitUSD which are tied to real life valuable assets rather than a peer-to-peer currency as in bitcoins.

BitShares growth

BitShares is most likely about to dominate the world of cryptocurrency in 2018. I have reviewed the platforms offered by various cryptocurrencies such as Ethereum, NEO, and Bitcoin. It is evident from shared user experience that the BitShare might be in a totally different league from the other cryptocurrencies. It is my strong belief that we are at the dawn of an incredible cryptocurrency system.

BitShare is a recent development and it is already taking its market share. This platform of cryptocurrency has provided the much-needed evolution head start in the world of cryptocurrency. it has its basis in the currency model of the bitcoin while encompassing the innovativeness and versatility of the Ethereum and branches out to the extent that the BitShares network operates as an economy of its own. It can be considered as a network, as a bank and currency all in the same right. BitShares has been operational and running perfectly since 2015 but has an interestingly sparked the interest of very few people.

BitShare’s native cryptocurrency is currently among the top 30 largest digital assets and has a market holding of approximately $1,126,986,682 US dollars.

Currently, the supply of BitShares is just under 2.6 billion BTS in addition to a 1 billion reserve held by the BitShares. During its inception in October of 2014, BitShares was trading at a range of below one cent and four cents but today, its value has substantially increased to an all-time peak of $0.45. Investors believe that by the end of 2018 BitShares could be valued as high as $1.5.

BitShares wallet

BitShares is a multi-cryptocurrency wallet and decentralized system of exchange from which a user can control accounts, trading assets and be able to send tokens worldwide.

Open-ledger web wallet- open ledger is the first decentralized system of exchange that offers a gateway for EURO, CNY, USD and other bridges available to stable and volatile currencies such as the Litecoin, Steem, Peercoin, Doge, Ethereum, and Bitcoin.

  • It allows everyone to establish their own coin on the same BitShares blockchain.
  • Also, each customer has an account that is suited to deal with the specific holdings of their coins.

Wallet and trade mobile wallet– the BitShares mobile wallet avail all the power of Bitassets on the Android mobile device.

Pros

  • E-wallets enable users to make payments through a safe and secure channel.
  • Discounts are given regularly to users by the digital wallet companies.
  • It is a convenient payment method.

Cons

  • The inherent problem of being dependent on phones.
  • Unreachable/limited only to the tech-savvy.
  • A limited number of retailers who accept this form of payment.

The concept of a cryptocurrency wallet might be difficult to grasp. For a crypto-veteran, you must have come across a wide range of cryptocurrency wallets and understanding the differences between these wallets might be a daunting undertaking but of significance to the appropriate use of cryptocurrency.

Desktop wallets are the most common types of wallets and are software applications installable directly from a cryptocurrency project. They require a full download of the respecting cryptocurrency’s blockchain data to function and are usually for a specific cryptocurrency. Desktop wallets are best used when the user maintains basic security measures and has a permit to a private system. A desktop wallet is fit for purposes of sending average amounts of cryptocurrency to remote addresses for purposes of online shopping, storage of a moderate amount of cryptocurrency that does not need airtight security or on-the-fly transactions in various numerous places.

How to buy BitShares?

The ideal trading manner is to buy the BitShares coins when prices are low and sell when its value goes up. It is not possible to directly buy BitShares using FIAT money, you first need to deposit a major cryptocurrency like Bitcoin or Ethereum. Learn here how to buy Bitcoin.

Livecoin >>

Livecoin is a crypto exchange which is a convenient way to buy and sell cryptocurrencies.

The trader benefits under this form include;

  • A simple and clear structure facilitating easy trading
  • Guarantees safety of data and assets
  • There are relatively quicker deposits and withdrawals

Binance >>

Binance is the fastest growing exchange platform for cryptocurrencies today. The increased popularity can be attributed to factors such as;

  • Availability in multiple languages
  • The possibility of processing the orders at very high speeds.
  • A neat user interface.

To open a binance trading account;

  1. Go to the binance website.
  2. Complete the signing up procedures.
  3. Enable the 2FA(2-Factor Authentication).
  4. Deposit your funds into the created account.
  5. Extract a trading transaction-buy/sell.

Is BitShares mineable?

BitShares are not mineable. The delegated proof of stake (DPOS) is the sole fastest and most efficient and decentralized model of consensus protocol available. DPOS leverages the stakeholders’ power to bring about a fair and democratic way to resolve issues requiring consensus. The proof of work used traditionally is energy consuming.

The DPOS systems determine the block producers through the stake-vote while PoW systems determine the next block producers through the computer’s ability to perform work.

In the DPOS system in the BitShares, the block producers are voted in by the people who own the tokens while blocks in bitcoin are produced by the individual who has the most capital to be able to indulge in mining hardware.

Summing it up

BitShares is one of the best realizations to an open, scalable and decentralized exchange platform with smart coins, which are a novel financial tool. It is self-sustaining such that it organizes and funds its operations and development thus making it a pioneering Decentralized Autonomous Corporation to cut through the free market. With the rate of advancement seen today, it is sure that BitShares will assume its rightful position of prominence in the crypto-economy.

Hopefully, now you have a better idea of BitShares and if you found this article helpful feel free to check out our website for more content that will help you to understand the crypto world much better.