Review on BitShares by Fabrizio Zampieri
It's a special project because it represents a token (BTS), a wallet and a…
It's a special project because it represents a token (BTS), a wallet and a Company.
BitShares is based on graphene tecnology and uses a DPoS consent algorithm (Delegated Proof-Of-Stake) as well as EOS and Steem.
BitShares management is controlled by a Decentralized Autonomous Company (DAC), a framework which changed how the industry looked at the possibilities of blockchain technology. DAC allows BitShares holders to contribute and ultimately decide on the future direction of BTS. BitShares itself is actually a DAC and they demonstrate the beauty of blockchain technology and decentralization in its purest form. The BitShares platform is programmed in such a way that there is a budget for the workers upgrading and developing the platform.
BitShares was created in 2014 by the American programmer and entrepreneur, Daniel Larimer, who was also responsible for the creation of the Steem blockchain and is currently working to EOS project.
BitShares offers financial services in competition with traditional banks by issuing collateralizing market chained and stable bitAssets, which are assets like bitUSD, bitGOLD, and bitCNY that track the value of their counterparts. This means that 1 bitUSD will be worth 1 USD. BitAssets minimize the risk of volatility in the cryptocurrency market by chaining the BitAssets (bitUSD, bitEuro) to common currencies like USD, Euro, etc
Pros
- - A positive aspect about BitShares is that your wallet address is a username that you pick for yourself, which is way better than long and complex strings of letters and numbers. - BitShares has been under constant development, and offers a lot of functionalities and can be used for a wide array of purposes. BitShares platform uses Graphen Tecnology (much more efficient than all existing analogs and thanks to the use of this technology, BitShares is theoretically able to perform a maximum of 100,000 transactions per second with a block time of 1.5 seconds).
Cons
- - This is still all very experimental technology. - Main risk: BitShares Smart Coins are created by borrowers who lock 200% of its value in collateral (in BTS), and then, they sell those assets on the market creating the current supply. Automatically, when the collateral goes under 175% of the value, the blockchain creates a margin call, buy back the asset in the market and cover the loan, but when the value of the BTS collateral backing the smart coin drop below 100%, a black swan occurs. For most growing businesses, a Black Swan event would greatly erode confidence in the system and disrupt the ability to conduct a safe transaction, especially on a large scale, and that would lead to a major setback for the business and even complete business failure. - BTS was unlisted from Bittrex exchange for not well know reasons.
