I have spent my first month on this platform reviewing cryptocurrencies and engaging with their communities, primarily with Gridcoin, Bitcoin and Ethereum. It felt only natural to give some attention to BitShares, being my most recent purchase in the cryptosphere. However, the more I have been learning about BTS, the more I came to realise that this is not just a cryptocurrency. In fact, it does not even fall into the same league. BitShares is going to do to the world of business what Bitcoin has done to the world of money - we are at the cusp of something incredible!
The Crypto Evolution
At the dawn of crypto in 2008, we had Bitcoin - a decentralised currency with the potential to disrupt the financial sector.
In 2015, the world of crypto was forever changed as Ethereum appeared onto the scene - boasting a currency with smart contracts, and a Turing-complete development language on its backbone enabling nearly limitless innovation.
Now, we are seeing the next evolution - BitShares - taking market share. This cryptoplatform (calling it a currency would not do it justice) supplies the next evolutionary step in the world of crypto. It builds on the decentralised currency model of BTC, encompasses the versatility and innovation of ETH, and extends out on all fronts to the point where the Bitshares network is an economy in its own right. It is a currency. It is a network. It is a bank. It is a stockbroker, an exchange platform, a breeding ground for innovation - and in the eyes of founder Daniel Larimer it can be thought of as a self-governed country in its own right.
The BitShares Details
Before we get into the details of the platform, and why it has such incredible potential, lets put this out there first:
Each layer has its own unique function, and benefits to the users of that layer. For any of us to enjoy the benefits of the BitShares platform, we do not need to use - or even understand - all the layers. You can pick and choose what layers speak to you and apply to your individual wants and needs. There are far too many layers for us to cover them all right now, but I would like to discuss the core groundbreaking feature that got me excited enough to invest - BitAssets.
BitShares has successfully managed to peg its currency, BitAssets, to traditional stores of value through a wide range of digital tokens representing these assets. In effect, this has eliminated the price volatility that we are used to as running rampant in the cryptosphere. For example, I am able to invest in bitGold and know that it will always trade near par value for gold on any exchange. This is something that we have not seen on this scale before in the cryptosphere. The result is unparalleled stability that enables us to HODL during periods of volatility that were seen in earlier cryptocurrencies like Bitcoin.
Let me put that into a different perspective - BitShares can encompass my entire investment portfolio including stocks, precious metals, oil etc in a way that is decentralised, fair, trustless and unfreezable. I can even use it to automatically pay my rent - in gold or oil should the landlord be that way inclined!
BTS is built on top of the Graphene high performance blockchain, which means that it is capable of maintaining the current transaction speed of up to 3 seconds (limited by the speed of light in fibre optics cable) and scale comfortably to 100,000 transaction per second in the future. This incredible performance capability allows BTS the throughput to successfully take market share from the traditional fiat financial platform and banking sector. To put this huge throughput in perspective, this enables the network to carry out more transactions that the VISA and Mastercard networks combined are able to process.
The huge throughput potential combined with minimal transaction fees and the decentralised exchange offers phenomenal advantages over traditional brokers, and will see unprecedented adoption by the financial sector over the next year. Even with this system in place, BitShares still has sufficient reserve funds to allow several years of continuous development.
BitShares is not in competition with anyone or anything in the cryptosphere - it is merely filling a void that allows the world of crypto to decentralise the modern economy.