It can be easy to forget, but cryptocurrencies are still pretty new. With Bitcoin only appearing in 2009, it’s only been less than 10 years since the field started. This is why there are still quite a lot of altcoins out there that are undergoing a lot of change. BitShares is an excellent example of a cryptocurrency that has gone through a lot since it first showed up.
Developed by Daniel Larimer, an early blockchain visionary, BitShares had very lofty aims. The problem was that they were too ambitious and scattershot that it became very difficult to understand the core business. Additionally, the cryptocurrency has not received as much press as it should, resulting people having a very vague idea about it. Here’s a simple overview for those who want to find more about it.
Basics of BitShares
Launched back in 2013, BitShares actually shares similarities with the more recent Ethereum. BitShares is based around DACs or decentralized autonomous companies. Much like smart contracts, DACs are computer programs that operate to execute business plans. BitShares runs these DACs and operating them requires tokens, coins that are generated by the network. There are significant differences, though, with Ethereum and Bitcoin.
First, BitShares mining is not done in the normal way. Instead of proof-of-work, BitShares has gone for delegated Proof of Stake. Instead of trying to avoid centralization like Bitcoin does, proof of stake mining sets up 101 delegates as the main miners of the BitShares network. These delegates can be voted in or out by the community or, if the system detects that the delegate is not doing their job, they can be replaced automatically.
Second, the network does not use the typical blockchain. Instead it uses the smartchain, which is a whole lot faster than the normal blockchain. Compared to the seven transactions per second of Bitcoin, BitShares can do 100,000 transactions, putting it on par with international banking standards.
Finally, the system allows for the support and development of DACs. This can allow for operations that require no human intervention. This ensures the absence of human error or interference and helps reduce resource costs. BitShares X is the system’s flasgship DAC and has become a successful exchange service for financial markets.
Towards the future
BitShares has gone through a lot since it first launched. Right now it has progressed into new management and rebranding. However, the ideas behind it remain the same. It will be interesting to see how the cryptocurrency BitShares will go in the future.
