(Newswire.net — October 11, 2014) — When Bitcoin was created five years ago, Satoshi came up with the best system we had at the time. It was brilliant technology. The idea was to decentralize Bitcoin as much as possible by allowing it to run on many computers.
Unfortunately, it’s no longer decentralized because the hash power is controlled by just a few big mining companies. In this aspect, Bitcoin is not decentralized as it was originally intended to be and requires some amount of trust in these new powers that be. Also, having to complete these complex algorithms and mathematical problems (proof of work) requires so much money, electricity, and expensive hardware; it’s not a green technology.
There had to be a better way and it is BitShares.
What are BitShares?
BitShares is a brand of open source software based on the same blockchain technology behind Bitcoin. Unlike Bitcoin, which is based on proof of work, BitShares is based on proof of stake, meaning that miners are not utilized.
BitShares is about making profitable companies that people want to own those shares in, and creating returns for shareholders.
BitShares software is used to launch DACs. Other applications that will be launched on BitShares software include voting, domains, and music.
So what are DACs?
DACs are Decentralized Autonomous Companies, an idea that was first introduced to the industry by its founder, Daniel Larimer. These unmanned companies issue shares in each company, produce profits and distribute those profits to shareholders. There’s no need to trust anyone to do this, as everything is hard coded into the software.
What are bit assets?
Bitcoin is too volatile to be used as a daily currency, so bit assets were developed and pegged to real world assets. This includes bit assets like bitUSD, bitYuan, bitGold, etc. This allows the user to immediately switch from dollars, to gold to even oil or shares of the exchange itself (BTSX), all within one private, secure and nearly free system. This entire system is called BitSharesX. Think of it as your personal vault where you can store these valuable bit assets, and an exchange where you can trade them. It’s an exchange that itself is more decentralized than Bitcoin.
What is BitSharesX?
BitSharesX is the first DAC launched this year. BitSharesX is a decentralized asset exchange launched by a group out of Hong Kong called DAC Sun Limited, using BitShares open source code.
What is Delegated Proof of Stake?
Delegated Proof of Stake means that instead of decentralizing to every single person who has a stake in the currency, it is decentralized to a certain number of delegates. In BitShares’ case it’s 101 delegates. Delegated Proof of Stake was introduced by BitShares.
The reason you want to do that is because of the costs. The costs get too high when you pay everyone in the entire system. With our system, delegated proof of stake, you have delegates that are voted into position by everyone who uses the system. Similar to Reddit, you upvote those you support. The top 101 with the most votes become the delegates and help run the system by approving blocks.
Its not unlike a representative democracy, where you have a congress, and the congress represents the people. But the one problem with the real congress in Washington, is that you can’t take them out of office very easily. But with our delegates, you can vote the entire group out, if needed. If enough people don’t like what’s going on with the delegates, they can all be voted out immediately and replaced by the next 101 in line.
In our system, once BitShares becomes the size we believe it’s gonna be, being a delegate will pay very well. Those delegates have an incentive to protect the system that’s paying them. It’s similar to being a miner except there’s no waste and the entire process is profitable from day one.
What is TITAN?
TITAN, stands for Transfer Invisibly To A Name. If you know someone’s username you can send them shares or bitAssets. No need for public keys, all you need is a name, like say, JohnathanSmith or perhaps an anonymous name like techguy233, and you can send and receive shares or bit assets.
Bit assets?
Since bitcoin is too volatile to be used as a daily currency, we’re developing what we call bit assets, which are pegged to real world assets. This includes bit assets like bitUSD, bitYUAN, bitGOLD, etc. This allows the user to immediately switch from dollars, to gold to even oil or shares of the exchange itself (BTSX), all within one private, secure and nearly free system. This entire system is called BitSharesX. Think of it as your personal vault where you can store these valuable bit assets, and an exchange where you can trade them.
Add to that a stable bitUSD, which is pegged to the dollar and you have something that is truly next level. No more need for going into and out of crypto constantly as a merchant who doesn’t know if Bitcoin is going to drop like a rock tomorrow in value. You can reasonably expect that 1,000 bitUSD will be worth about $1,000 USD a week, a month or a year from now. BitUSD also pays interest, so just holding and saving in your vault is profitable.
At any point you can get immediately out of the dollar and into another currency like bitYUAN or into bitGOLD, tied to the value of one ounce of gold. And this can all be done without ever leaving BitSharesX. The combination of all these solutions makes this the platform with the most potential.
Source: http://bitcoinmagazine.com/16972/exclusive-interview-bitshares/
BitSharesX
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