A while back I wrote a post or two about BEOS, a new blockchain project that was meant to provide interoperability between chains.
This is now in working order with a Testnet already in place. Some of the project is being delayed while the legal team reviews everything to ensure compliance. Nevertheless, from a technical perspective, it is on track.
So what is BEOS?
It stands for Bitshares EOS. This was a project that @stan mentioned before he fell ill. It addresses a number of issues we are seeing in the industry.
The first goal of BEOS is to provide token portability between Bitshares and EOS. At present, this is not in place. Any token created on Bitshares is barred from enjoying the features and functionality of EOS. In the reverse, EOS based tokens cannot trade on the Bitshares exchange like Smartcoins. They are two distinct chains.
BEOS will unite the two. Bitshare tokens will enjoy the EOS features such as Smart Contracts. At the same time, EOS tokens will have access to the Bitshares network which is essentially a high speed exchange.
@blocktrades wrote an excellent article describing the differences between each chain and how BEOS unites the two. He also explained the pros and cons of smart contract technology and why Bitshares is most enhanced by having a sidechain provide that feature.
The second goal of BEOS is to provide jurisdiction agility. This means that one can determine which jurisdiction the transactions are taking place within. Why would this be important?
Blockchains today can transact anywhere. The decentralized nature of mining and POS means that software is running on computers all over the world. Nobody controls where the transactions actually take place. For example, if one goes to Bitshares at this moment, he or she has no idea where the block will be produced. This is not a problem for most individuals since we simply are trying to send a simple transaction. We are also sending one or two at a time.
This does become a concern for institutions. They cannot operate with having transactions occurring anywhere. Instead, they need to know where things are taking place to ensure compliance with regulations. An example would be a U.S. bank and Iran. With the sanctioning of Iran, U.S. banks cannot have financial transactions with that country. Hence, a block producer in Iran would cause that bank problems.
BEOS solves this problem by enabling one to select the jurisdiction where a block producer is located. As the transactions are run, when that one comes up, it simply waits for a block producer from there. If one is not available, the transaction waits. This ensures that the institution is always in compliance.
Another facet to all this is the raindrop that is going to take place. BEOS will not be conducting an ICO nor will it be doing an airdrop. An airdrop is taking a snapshot of the blockchain at a particular point in time and dropping the new coins on those holding the existing ones.
Under the raindrop, one needs to opt in. This is done by depositing Bitshares into the BEOS gateway. Based upon the total Bitshares deposited, one will receive the equal percentage in BEOS of his or her Bitshares deposit. Thus, if one deposit makes up 5% of the total, that person will get 5% of each distribution.
This will run for 89 days and one can take out the Bitshares stake at anytime. Naturally, the raindrop stops when the Bitshares are removed.
The BEOS token will be available for trading on @blocktrades. This will not start until the raindrop of complete.
One final thought: It is not part of the system but do not be surprised if, one day, BEOS is operating on a satellite floating around the planet. Perhaps there might be an institution or two that wants to have their transactions ruled by international law.
Beam me up Scotty.
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