What Is BitShares and What Exactly Is It Used For?
BitShares was founded in 2014 by Dan Larimer, a cryptocurrency visionary and early adopter. He first started working with Bitcoin in 2009.
What is BitShares?
BitShares is a decentralized crypto-economy. The reason it's decentralized is because it uses consensus technology to achieve true transparency. Transparency is another word for decentralization and how BitShares uses this system to achieve it. In the conventional sense, the control of the world's money and credit system lies in the hands of major banks and large corporations. BitShares aims to change this. In the traditional money system, we rely on centralized banks to determine the credit, money and debt limits of consumers. BitShares, on the other hand, uses an algorithm to determine how money is issued, how much credit can be given to consumers, and how much debt can be issued to people.
How is BitShares different from other cryptocurrencies?
BitShares is the first blockchain based global currency. The Blockchain itself is the base currency of the currency, so it can be traded or exchanged for other currencies, with other currencies, or even used to pay for goods or services. Do you have a BitShares account? Yes! I have an account with BitShares and I use it on a daily basis. My BitShares address is: 1000Xy2swr6c8aH43SwtzQd6XsG2JiaumhI8. How is the system working exactly? BitShares is a token, which means that there are a limited number of the tokens available and are awarded as part of the donation process. So the more successful we are in terms of completing the deployment of the BitShares platform, the more tokens we get. There are two classes of BitShares: “S” and “B”.
Why does BitShares exist?
For all intents and purposes, it’s a cryptocurrency. But BitShares uses blockchain technology to do a lot more than transact: it also provides blockchain technology solutions, such as mobile banking, Internet of Things technology, distributed insurance, and so on. This concept is called blockchains-as-a-service. How Does BitShares Work? You can think of BitShares as a simplified version of blockchain technology. For one thing, BitShares maintains a real-time record of who owns what, and where their assets are located. When a user creates an account, a private key is created that is stored on the BitShares blockchain and never leaves it. Additionally, a snapshot of this private key is recorded every time BitShares is transferred from one account to another.
Also read :- The Complete Beginner's Guide To Chainlink
How does BitShares work?
BitShares is designed to be a more effective and decentralized version of bitcoin, the most popular cryptocurrency. Instead of relying on bitcoin’s P2P system to make transfers, BitShares relies on its own p2p system, which means it is directly connected to the internet. It operates much like bitcoin’s blockchain, a public ledger of transactions. And like bitcoin, BitShares is open source and can be run by anyone. The difference, however, is that BitShares’ system uses a "decentralized governance" system to run the network. This means that instead of users doing the heavy work to make decisions about the future of the blockchain, a group of users called "miners" earn BitShares tokens for working to make the system function more effectively and efficiently.
What are the benefits of BitShares?
BitShares is a decentralized platform that runs on the Stellar blockchain. This means that the blockchain network is divided into bits and each one is able to create its own digital currency (known as BitShares). These currencies are then stored in the BitShares ecosystem, which gives them the ability to move around without requiring the intervention of an individual entity (such as a bank or government). As the underlying currency of this marketplace, BitShares has a wide variety of applications across many industries. One of the most popular uses of BitShares is the Lightning Network, an instant payments solution that removes the need for third-party institutions. Imagine being able to send money instantly between two people without requiring any middlemen or intermediary.
Conclusion
One of the major components of the Bitcoin network is mining. However, BitShares does away with the current mining system, in favor of a method called Proof-of-Stake (PoS). On top of that, BitShares also allows third-party applications to be written to be used within the network itself. This system adds a whole host of blockchain potential to a decentralized ledger system. BitShares currently has a market cap of nearly $700 million USD. BitShares is generally considered one of the top 10 cryptocurrencies in the world. What do you think of BitShares? Let us know in the comments below! Images courtesy of BitShares, Pixabay, and Shutterstock. Did you know Bitcoin.com is throwing a blockchain conference in London this year?