1 Level
6 Review
2 Karma
Review on BitShares by Phuc Phan
Many gateways prefer the low-risk approach of one-for-one redemption and will…
Many gateways prefer the low-risk approach of one-for-one redemption and will simply allow the GatewayUSD to float against BitUSD with a small but variable spread in the market. Users then pay a small variable conversion cost as they exit from BitUSD to fiat USD through GatewayUSD.
On the other hand, many users will want a direct conversion from BitUSD to fiat USD. In this mode of operation, the gateway takes care of providing all of the liquidity within a fixed percentage transaction fee. The gateways then compete on offering the lowest possible spread.
Once this happens, BitUSD is effectively as good as USD with a small fixed conversion fee. This fee will likely be no more than the withdraw and deposit fees that current exchanges charge. At that point, BitShares will be a fully operational exchange with many banking partners and no limits. At no point in time will user deposits ever be subject to default or confiscation by an exchange or gateway. A truly decentralized exchange will have been realized, and the original vision of BitShares completed.
Pros
- Keep everything in memory. Keep the core business logic in a single thread. Keep cryptographic operations (hashes and signatures) out of the core business logic. Divide validation into state-dependent and state-independent checks. Use an object oriented data model. By following these simple rules, BitShares is able to process 100,000 transactions per second without any significant effort devoted to optimization. Future optimizations are expected to bring the performance of BitShares to levels similar to LMAX.
Cons
- No company has successfully implemented the platform.
