1 Level
6 Review
2 Karma
Review on BitShares by Minh Hoang
When you hold BitUSD the value of your holdings will remain pegged to the…
When you hold BitUSD the value of your holdings will remain pegged to the dollar so long as BitShares itself has reasonable volatility. Reasonable volatility in this case means that it can handle greater volatility than Bitcoin has ever seen in its lifetime. The price of BitShares would have to fall to less than 1/3 its starting price in less than 24 hours and then stay there. No legitimate, widely adopted cryptocurrency has ever seen that kind of price movement. This means that BitUSD is secure against just about everything but an unfixable software bug in the BitShares protocol itself.
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
- that the performance achieved by BitShares is highly dependent upon having a compatible transaction protocol. It would not be possible to achieve the same level of performance in a protocol where the Core Business Logic is run in a virtual machine that performs cryptographic operations and references all objects with hash identifiers.
