Bitshares explained – What are bitshares and what is BITUSD

in this episode of crypto talk we’re going to be looking at the world’s 17th largest cryptocurrency it is of course bitshares with a market cap of around 330 million dollars in trading at around 13 cents we’re gonna find out why this crypto coin is different from anything else in the marketplace and exactly what makes it tick so stay tuned we’ll be right back [Music] the chest was launched in 2013 and aimed to fix a lot of the scalability issues that Bitcoin was running into in a day in addition to that it offered some new features in the form of smart contracts which is similar to what aetherium uses but the way that the two coins implement these contracts is a little different your value is a decentralized exchange platform that allows for the creation of decentralized autonomous companies these companies can create shares produce profits then redistribute those profits as dividends to the shareholders this allows people to create services on the bitshares network so if you want to think of bitshares as a company you can think as the individual products as a service so example for example bitshares is the overall company but bitusd is a specific service and bitusd is a company or a sub branch or a service that’s underneath bitshares and what it plans to do or what it offers is a stable store value so one bitusd will always be equal to one USD with a variance of maybe 1% and that closes up as the market depth deepens and that’s probably a discussion for another video but for now we’ll focus on the fact that one bit USD will always equal one US dollar before we talk about more use cases this already has a tremendous amount of value because right now if you’re an online business if you get paid in Bitcoin you need to immediately convert that into US dollars because if you run an online business and you want to accept digital currencies the first thing that you need to do once you receive them because they’re so volatile is convert them back in to your local currency so in our example it would be US dollars if you can use a service like bit USD now you’re able to store your crypto currencies and know and have confidence that they’re going to be worth the same value compared to the US dollar and this takes a lot of the volatility volatility out of the market and it also allows for more stability so in that respect bit USD and tether are very similar crypto currencies and very similar services only tethers own cryptocurrency and bit USD is a service underneath bitshares bitshares uses a delegated proof of stake system as opposed to Bitcoin which is a proof of work the two are very different in their philosophy because in Bitcoin we require – to secure the network and as they go in search for new coins and as they increase their processing power in order to find the new blocks they’re securing the network but they’re also using a lot of this energy it this creates a problem the people that are mining Bitcoin have the biggest say in bitcoins future and the people that own a lot of Bitcoin don’t really have much say at all unless they go and buy mining equipment in the delegated proof of state system one coin equals one vote and if you aren’t involved in the politics or you don’t for example understand the implementation or what’s going on you’re a label able to elect somebody to vote for you so for example you could join an exchange you could buy that currency and then the exchange on your behalf could go and make decisions for you and vote on what the best direction for the cryptocurrency would be this delegated proof of stake is much faster than just proof of stake and proof of work it allows the network to stay decentralized while being able to handle traffic volumes that are larger than mastic odds and visas and considering that bitcoin right now is struggling to handle six transactions per second and this potential solution can handle thousands right away we see we can identify that there’s a clear advantage with scalability in bitshares bitches is not supposed to replace all crypto currencies and it’s not supposed to compete with all of them either if I was to give you an analogy I would say that aetherium is sort of like having a tank it’s powerful it’s useful and it’s a great for winning the wars but it’s not really a specialized piece of equipment bitshares might be like a sniper rifle with night vision it’s in the right environment and in the right hands it could easily be the most effective weapon but it was never really made to service the whole military any contract that can be built on bitshares can be built on aetherium although because aetherium is so broad and because the way that it implements its smart contracts allows users full control over it it means that they’re not going to be implemented as efficiently for so for high-frequency trading or for volume trading or anything like that having a more efficient system even if it’s only by a small amount makes a big difference by having a decentralized exchange we’re able to create or sorts of services underneath bitshares they can be example bitusd GLD for gold bit CDN for the one of the chinese one now we’re able to use this highly efficient and highly scalable exchange platform to facilitate the trades between all these different asset classes a lot of these concepts aren’t new and they’re what’s used in futures markets and derivatives markets right now only because there’s no accountability and there’s no blockchain or there was no blockchain this required a huge amount of oversight in terms of regulators accountants and financial auditors the blockchain technology allows us to rely on cryptography a lot more so while there are other ways to introduce fraud in the system by having a public ledger that’s viewable by everybody and that can’t be changed without breaking the entire system it removes a lot of the ability for people to conduct fraud and not be noticed even if a fraudulent Act was being committed on the blockchain as soon as it was discovered it would be easy to go trace it back and see exactly how it happened which is something in a lot of institutions and a lot of systems that’s just not possible so the blockchain technology offers a decentralized way that we can have trust in parties that we’ve never met before so if I’m exchanging with somebody on the other side of the world I don’t need to trust them I don’t need to know them I can rely on the platform I can rely on the protocol of the smart contract and I can rely that for example when I send my Bitcoin I’m going to receive my bitusd or whatever my other digital services in return and this is really important because it removes the need for escrow it removes the need for so many different regulatory authorities at different levels and it just increases the efficiency and cost increases the efficiency while decreasing costs and it allows everybody to rely on the network rather than relying on regulators and individual companies when we start talking about derivatives and financial instruments a lot of people don’t fully appreciate the applications the industry for derivatives right now is around 700 trillion dollars yeah so even making a small gain in efficiency or being able to enforce some of this ledger technology would make a huge change on as more and more businesses and individuals discover the blockchain technology and then start to think about the implement of smart contracts it’s going to change the way that we’re doing business in the future so I believe that there’s going to be a place for bit chess as a highly efficient decentralized exchange and that is going to be able to run parallel to etherium and their smart contracts the two will be very different and I believe that aetherium will service the majority of the market while bitshares really services some financial services and some very specific use cases for that reason I still have I still have a bright outlook for bitshares in the future although because there are so many other great crypto currencies that are being released right now it’s not on my top ten list and it’s not one that I’m personally invested in thanks for watching bitches is definitely one of more technically challenging crypto coins I’ve had to review if I’ve made a mistake in any of the information I’ve presented here please let me know by a comment I’ll update the video and we’ll learn together until next time I’ll see you later follow me every time somebody liked one of my videos I wanted these plants every time somebody subscribed to my channel I give them the trees every time somebody shares a video on Facebook so if you like gardening dogs America or cryptocurrency you should support this channel [Applause] you

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.