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As cryptocurrency is becoming an inextricable part of people’s lives across the globe, a number of traders and novice investors are desperately searching for some ancillary benefits and ingenious features from the relatively newer and unfamiliar coins making their way in the cryptocurrency market. The fact that Bitcoin is in a bit of a quagmire at the moment is compelling investors around the world to have serious doubts about investing in this currency. Also, there are other digital currencies that are suffering a similar fate as Bitcoin due to having conspicuous resemblance with Bitcoin’s internal architecture.

Under the circumstances, people are inclining towards those currencies that can provide a blockchain solution devoid of Bitcoin’s well-known problems like slow and expensive transaction, volatility, etc. along with offering a formidable market capitalization. BitShares (BTS) certainly falls under that category as it has managed to gain a position among the top forty coins on Coinmarketcap despite the sheer competition. Since its inception back in July 2014, BTS has been offering a significant number of features to its holders which are hitherto unprecedented. Here, the principal factors associated with this coin will be discussed below to give an idea why it is judicious to invest in this coin at the moment.

The Technology behind BitShares:

BitShares was designed in 2014 by Don Larimer, who also happens to be the co-founder of EOS, Cryptomex, and Steemit. By definition, BTS (previously known as PTS or ProtoShares) is a crypto-equity of industrial grade and a peer-to-peer distributed ledger based Delegated Proof of Stake (DPoS) algorithm.

BitShare’s inherent features are acquired from Graphene, an open-source blockchain implementation solely based on the C++ programming language. Graphene is a very popular blockchain technology that has been implemented by several ICO, gaming, and other start-up companies across the globe. One of the main reasons behind BTS’s efficiency is Graphene’s flawless performance. Besides working as a blockchain technology, Graphene can also be implemented as a consensus mechanism.

The dependence on this technology provides BTS an extraordinary scalability. Graphene is capable of successfully handling 10,000 transactions per second which give BTS the ability to handle more transactions per second that MasterCard and VISA combined.

Delegated Proof of Stake Algorithm:

BTS is the first and only cryptocurrency to implement delegated proof of stake algorithm in its blockchain platform. The main problem with the proof of work algorithm used by currencies like Bitcoin is that it consumes a significant amount of energy and computing resources to resolve certain mathematical problems. This excessive consumption makes the platform unsustainable for long-term usage.

In case of traditional proof of stake algorithm, the users hold a certain number of coins to create new coins. Delegated proof of stake is an advanced modification of this system where it implements a governance layer to the traditional PoS algorithm. In this system, the coin holders can delegate their stake in order to elect witnesses who can collect transactions, bundle them into a single block and send it to the blockchain network. These witnesses are paid in shares from the reserve pool for their services. DPoS allows proxy voting for electing or retracting power to a witness on BTS platform.

Stable bitAssets or Smart Coins:

Smart Coins are another very important part of this cryptocurrency and also one of the main reasons behind its stability amidst market turmoil. The concept of smart coins is based on tracking real-world assets like various fiat currencies (preferably USD) by cryptocurrency assets such as BitShares. This tracking system provides the BTS developers an unmitigated surveillance and control over the entire world economy.

Smart Coins offer several unique features such as convertibility. As every smart coin always has its value at least 200% backed by BTS, it can be converted at any time. Also, smart coins allow the BTS platform to be free from counterparty risk.

Because of Smart Coins, BTS is capable of offering the following advantages to its holders:

  • A stable price with mitigated volatility
  • Hedging against capricious price action and market
  • Acquiring certain units of different accounts from capital gains and losses having increased tax liability.
  • A reliable and foreseeable system where the traders can predict the possible future and act accordingly.

Decentralised Exchange (DEX):

BitShares offers a decentralized exchange with its token currency BTS to its traders. A decentralized exchange or DEX provides many unique features, unlike traditional exchanges. Some of these beneficial features include

  1. Effective elimination of hidden orders, front-running, and high-frequency trading or HFT
  2. Availability of multifarious cryptocurrency instruments along with their derivatives in order to make crypto-trading more convenient for the traders
  3. Availability of marked assets like smart coins for keeping track of the real world assets like US Dollar.
  4. Incredibly low transaction fees without any trading limits which provides the investors absolute financial freedom.

Current Scenario of BitShares:

At the moment, 1 BTS is equivalent to approximately $0.36. With a formidable market capitalization of 955 million USD, BitShares is currently holding the 31st position on Coinmarketcap (As of 3rd May 2018). Besides its own exchange, BTS is also available in well-known cryptocurrency exchanges like Livecoin, Poloniex etc.

Final Thoughts: 

The BitShares team is making continuous upgrades in its existing technology to make it even more efficient and user-friendly. With its delegated proof of stake algorithm, BTS has already managed to grab the attention of several traders around the world. With more developments and lucrative partnerships on its way, investing in BTS is very likely to turn out a lucrative decision in this year.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pexels


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