How is Bitshares decentralized?
How is Bitshares decentralized?
Trading in the open decentralized exchange is advertised as safer in many ways. I have yet to learn as to why this is.
I’m new to Bitshares and at the moment I have no practical experience. I’m reading and learning. As I understood I get given a certain amount of OPEN.BTC when I deposit my Bitcoins. These Exchange Backed Assets (EBAs) are no longer Bitcoins so someone else is holding my bitcoins. Basically I get a receipt and a promise. I get the feeling that now someone else is keeping the Bitcoins and is giving me another token of his creation instead.
So how is this different from centralized exchanges? If the system cannot hold its promise I still loose the Bitcoins? Who will want the OPEN.BTC?
Isn’t OPEN.BTC the same as BITTREX.BTC, POLONIEX.BTC, …
Can someone explain? Thanks!
Basically there are two different types of tokens in BitShares.
Tokens issued by 3rd party that are backed by trust and a promise that you receive something in return. (open.BTC comparable to poloniex.BTC)
And tokens that are backed by collateral on the blockchain without middlemen or counterparty risk. (BitUSD, HERO and other SmartCoins)
There are many good sources to learn from, it just depends on how deep you want to dive.
Deep enough to gain trust and understanding.
Care to share some of those good sources? That graph looks interesting but some context would be great.
Always update this type of post beacause which they are bew at cryptocurrency market have knowledge
Bitcoin is decentralized in that the ledger (blockchain) is housed on different computers around the world and all transactions are not located on one company's servers. You buy something with a Visa card, that transaction is on Visa's server. If you sent btc from one wallet to anther, that is housed on computers all over the world and the transaction is public for anyone to see.
Exchanges, on the other hand, are centralized.
I understand that part but that is not the question. The thing is that what is stored in the block chain is a promise of something centralized. As far as I know.
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open.btc is the same as bittrex.btc , Bitshares coin is decentralized and no counterparty risk , BitBTC is collateral backed and pegged to the price of BTC with no counterparty risk.