BitShares

Overview of BitShares

BitShares (BTS) is an open-source, decentralized blockchain platform designed primarily to facilitate financial operations such as trading, asset issuance, and decentralized governance. Launched in July 2014 by Dan Larimer (also known for Steemit and EOS) and with early involvement from Charles Hoskinson (co-founder of Ethereum and Cardano), BitShares aims to deliver the functionality of a decentralized exchange (DEX) and a wide range of financial services without reliance on centralized authorities.

Key Features

Decentralized Exchange (DEX)

• BitShares operates a built-in DEX, allowing users to trade cryptocurrencies and digital assets directly with one another, bypassing traditional intermediaries.
• The platform enables the creation and trading of “Smartcoins”—digital assets pegged to real-world values (like USD or gold)—which are backed by BTS as collateral and can be redeemed at any time.

Delegated Proof of Stake (DPoS)

• BitShares pioneered the Delegated Proof of Stake consensus mechanism, where BTS holders vote for delegates (witnesses) who validate transactions and maintain the blockchain.
• This system enables rapid transaction processing—often within a few seconds—and supports high throughput, reportedly capable of handling more transactions per second than major credit card networks.

Governance and Community

• BTS token holders participate in governance by voting on network parameters, funding proposals, and selecting delegates.
• The platform is managed as a decentralized autonomous community, with rules and upgrades decided democratically.

Custom Asset Creation

• Users can issue their own tokens on the BitShares blockchain, which can represent anything from company shares to loyalty points.

Distributed Autonomous Companies (DACs)

• BitShares enables the creation of DACs—organizations run by code and governed by stakeholders, with no central management.

The BTS Token

• Utility: BTS is the native utility token used for transaction fees, collateralizing Smartcoins, voting, and funding development.
• Staking and Voting: Holders can stake BTS to participate in governance and earn rewards.
• Collateral: BTS backs the value of Smartcoins, ensuring stability and trust in the system.

Use Cases

• Trading digital and real-world-pegged assets without intermediaries
• Issuing custom tokens for businesses or projects
• Participating in decentralized governance and funding proposals
• Running or joining DACs for various decentralized services

Technical Foundation

• Graphene Blockchain: BitShares is built on the Graphene blockchain framework, known for its speed and scalability and also used by projects like Steemit and PeerPlays.
• Open Source: The platform is fully open source, allowing transparency and community-driven development.

Summary Table

Conclusion

BitShares is a pioneering blockchain platform focused on decentralized finance, offering a high-speed DEX, customizable asset creation, and community-driven governance through its BTS token. Its use of Delegated Proof of Stake and the Graphene framework has influenced many subsequent blockchain projects.