If you know about the basics of blockchain technology that underlies cryptocurrencies, you would know that decentralization is an important trait of both of them.
However, we often see market forces causing centralization to creep into the world of crypto.
In this introduction to BitShares, we will see how it attempts to solve this problem, and what it really is all about.
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What is The Problem That BitShares Tries to Solve?
Now, we know that most of the top cryptocurrency exchanges we have, like Binance, for example (which is the market leader in terms of trading volume) are centralized exchanges.
Here, you move beyond the blockchain your cryptocurrencies were a part of and give in to the anonymity-less world of crypto exchanges. Here, your crypto holdings are frequently converted into fiat currencies before they can be converted to another cryptocurrency.
This conversion, which takes it out of the original blockchain, tends to compromise on the basic precepts of blockchain as well as your privacy needs as a crypto user. This is the basic problem that BitShares hopes to be able to solve.
According to the official website of BitShares, the company also seeks to solve security issues that arise by allowing a third party to handle one’s invested holdings.
It cites historical cases in the crypto world and states:
“Throughout history, centralized exchanges have repeatedly proven unreliable and untrustworthy. Whether it is MF Global, Mt. Gox, or BitStamp, many people have been cheated because they allowed a 3rd party to hold their funds. It doesn’t matter how big they are, or how many auditors, regulators or insurers are involved, every kind of fraud, abuse, and theft can occur. In the modern financial system, these transgressions happen all too frequently within centralized banks and exchanges operating across the world. It is time for a change. Keep reading to learn about the benefits of using the world’s first fully decentralized exchange, BitShares.”
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Introduction to BitShares: What is It?
BitShares is basically nothing but a decentralized crypto exchange that does not require users to leave the blockchain in order to make a trade. It fulfills a rather important precept of blockchain tech: trustlessness.
It is also quick and scalable. Instead of having to convert to fiat, you can use their native coin BTS to serve as a conversion medium.
Besides, the BitAssets (for example the BitUSD pegged to USD) are designed to achieve stability without necessitating a departure from the blockchain network itself. Using BitShares, customers can easily convert their coins to a stable, fiat-backed asset.
According to the official website:
“BitShares provides a high-performance decentralized exchange, with all the features you would expect in a trading platform. It can handle the trading volume of the NASDAQ, while settling orders the second you submit them. With this kind of performance on a decentralized exchange, who needs risky centralized exchanges?”
Why Choose BitShares?
BitShares lives up to the needs of blockchain by ensuring thorough decentralization.
In addition,it facilitates fast transactions without being “too fast” so as to ensure that all users can use the service at an equal footing.
You can trade without a limit on this platform, and pay extremely low transaction fees while you do so. Besides, all the fiat assets that underlie the BitAssets are stored in sufficient quantities to ensure adequate backing.
All these factors make BitShares a rather secure and exciting option to go for.
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