Bitshares: Backed to Displace Bitcoin
Daniel Larimer is a renowned figure in the cryptocurrency world. He is currently the CTO at EOS but what he is known for is being the inventor of the delegated proof-of-stake which has today been adopted by hundreds of digital currencies. He developed Bitshares and released it in October 2015 as both an alternative and an improvement of the Bitcoin blockchain platform.
Bitshares value has risen, with the efficiency as a transfer network spurring the rise to a great extent. More transfer institutions have resulted in using the Bitshares platform over the Bitcoin platform. One of the major institutions to do this was Hong Kong’s remittance platform, Bitspark which dropped Bitcoin for Bitshares stating as their reason that Bitcoin is much more expensive and slower too.
Most cryptocurrencies heavily rely on miner to validate the transactions carried out on their platform. These miners have to be rewarded for this and the user bears this cost which can be quite high depending on the currency and the prevailing market conditions. This leads users to hold on to their currencies and transact them in bulk to lower the cost.
Bitshares, however, assures the users of the cost being the fraction of a cent and with this in mind, one can transact the funds when they get them, small as they may be. This is especially appealing to small retailers who may not have huge volumes to transact.
2. Bit Assets
When merchants receive digital currencies, they are usually forced to sell them fast to avoid incurring losses from the volatile nature of most currencies. Bitshares solves this through the creation of Bit Assets which are market-pegged assets whose value is attached to real-world fiat currencies such the US dollar or commodities of value like silver or gold which are much less volatile. This enables the users to hold onto their assets minimizing the fees and taxes as well as the risk involved in switching to and fro between digital and fiat currencies in search of stability.
3. Solid foundation
The Bitshares network is run by individual computers from all over the world which keep their data synchronized over the internet. In essence, this means that the network can run even if only two computers are running and can communicate over the internet. This offers the network protection against failure as each computer maintains a copy of the immutable database and this serves as a solid ground for the foundation of higher and more complicated layers.
4. No liquidity required
When conducting a cross-border transaction of digital currencies, there has to be a willing party to fill the equivalent fiat value. This means that even though sending digital currencies to a country in Asia or Africa is relatively easy, the recipient can only benefit from the digital currency if he can find local entities to exchange the digital currency with for local fiat currency.
Bitshares aims to improve on this by using decentralized pegged cryptocurrencies which mean that any user can be a market maker in the various global currencies without having access to the local fiat currency in a digitized and automated process.
Bitcoin introduced the world to a whole new world of possibilities through the blockchain technology which is transparent and secure for money transfers. Bitshares has however made this process much safer, automated and user-friendly and is certainly the next big driver of the blockchain movement. An investment in Bitshares will multiply tenfold in a year or two and there isn’t a better time to invest in it like the present.