The world of cryptocurrencies has advanced by leaps and bounds because today we can find a huge variety of cryptocurrencies in the market such as Bitshares. And the changes do not stop there, little by little we have seen how technology has begun to revolutionize.
Here we will talk about Bishares, a digital currency that goes beyond the conventional precepts of cryptocurrencies, since it has unique functions. So, if you want to know more about BTS, it is better that you keep reading this that we prepare for you with the aim that you can make better financial decisions.
➡What is Bitshares? ✨
In a simple way, Bitshares is a cryptocurrency which goes further with different functions. Basically It is a decentralized exchange or exchange house which is based on Blockchain technology. This allows users to transact, trade securities and assets.
Among the features that Bitshare offers is the way in which they end the centralization of traditional exchange houses. And it is that when you exchange digital currencies in a normal Exchange, the operation is managed by them, hosting all the information within their servers.
Bitshares is responsible for eliminating this centralization by including Blockchain technology with the exchange house. Thus, the nodes will be in charge of managing all transactions, which reduces their cost. In addition, this makes the information remain as blocks in the chain and not in the exchange house.
Another feature that stands out in Bitshares is the way in which this cryptocurrency and exchange house has focused on modifying the volatility of its digital currency. This has been achieved through two technological solutions that are worth reviewing:
- Backed by dollars: The first thing you should know is that Bitshares has a 1 to 1 backup with Smart coin Bit USD lor that means that the coin is backed by 1 dollar. This makes the stability much higher compared to other more volatile cryptocurrencies.
- Use of BitAssets: In addition to the dollar, Bishare has focused on creating new digital assets which are backed by real assets. Thus we can find assets such as dollars with its digital counterpart Bit USD or gold with its online version called Bit Gold.
- Stability: One of the main advantages of BTS is the fact that this cryptocurrency enjoys much greater stability than other types of online currencies. This is because the asset backing means that the currency does not have the marked ups and downs that these currencies usually have.
- Exchange: Another great advantage is that the Blockchain technology used in this exchange house changes the ways of making transactions. Your information will already be centralized if not now it will be managed by the nodes. What's more, You will have the option of exchanging your cryptocurrency for other types of assets without complications.
- Speed: Similarly, by using blockchain technology for transactions, the process is much more efficient. This means that the time it takes for the transaction to be processed will be much less than the time it takes in a conventional brokerage house. Thus, the process becomes much more efficient.
- Real money backup: As if that weren't enough, you should know that the Assets offered by BTS together with its digital currency have a real world endorsement. That is, they have a 1 to 1 relationship with another asset, a digital currency has a dollar behind it.
➡Differences between Bitshares and Bitcoin✨
- One of the clearest differences between both cryptocurrencies is in the structure. Bitcoin has a single structure called a unitary structure while Bitshares operates a double structure, which is divided into BTS Coins and Bit Assets, the assets of Bitshares.
- Bitshares, unlike other virtual currencies, is linked to the value of other assets as a form of backup. By having coverage in Smart Coins the stability of the digital currency is ensured, thus avoiding the volatility that characterizes most cryptocurrencies like Bitcoin, Ethereum, etc.
- The maximum amount of cryptocurrencies is another of the differences that we find between both currencies. Bitcoin, for example, has a maximum amount of 21.000 million while Litecoin has 84.000 million coins. Instead, BTS only has 3.600 billion virtual coins.
- Another significant difference is in the fact that BTS's Blockchain technology has improved the speed and capacity of transactions compared to its competitors. This allows it to match NASDAQ in transaction speed and processing power to both Visa and MasterCard, which is truly surprising considering it has the capacity of industry giants.
➡Technology behind BTS✨
Being an exchange house, with its own cryptocurrency, based on an improved Blockchain, Bitshares works by means of a unique algorithm, Delegated Proof or Stake. Basically this is an improved Proof of Work algorithm used by Bitcoin in its transactions.
The use of the DPoS algorithm makes the validation speed of the objects much higher, faster and more efficient. In addition, this allows to make the equality between the miners also improve. In this way, it is possible to increase the processing capacity of your blockchain and the nodes that make it up.
It is known that countries with lower electricity costs concentrate more cryptocurrency mining. That is why BTS has focused on creating a mining process where competition is eliminated and a role or shift is assigned to each member of the chain.
Thus, the miner will only mine and receive his payment when it is his turn to validate the blocks of the chain. To achieve this, it was necessary to modify the algorithm, thus creating the special DPoS for this task. In addition to making the process fairer, it also makes it more accessible.