Now that Steem has turned into a article juggernaut and signing-up machine. The benefits will only trickle down to Bitshares the first DAC or DAO to ethereum folks. A DAC is a "Decentralized Autonomous Corporation." This term was stolen by Vitalik Buterin phrasing his term DAO or "Decentralized Automonous Organization."
Bitshares is like the NASDAQ, a Futures exchange or even a Visa Card payment system. It has 3 second confirmations that can be made into 1 second confirmations. Bitshares can also handle over 100,000 transactions a second and probably a lot more with the right equipment. Bitshares will have to when the system is built out and high frequency traders come in or we can buy cattle futures or trade leveraged currencies. How does Bitshares get these fast transaction times? The system has a set amount of what Bitcoin would call "Miners" but Bitshares calls them "Witnesses." Now to square the circle there are only a small amount of witnesses around 24. You can check out who they are here http://cryptofresh.com/witnesses . Now obviously they dont give out their addresses but some do.
The reason Bitshares has not taken off yet is due to poor marketing and lack of visibility. Bitshares is like Ethereum the only difference is Bitshares has a council to vote on things while Ethereum lets anyone build anything. This DOESNT mean that you cant crowdfund on Bitshares, you can. You can make a UIA or "User Issued Asset." This can help you kickstart your business on the cheap. You can raise money and instead of doing an IPO on a small stock exchange which could cost upwards of $100,000 USD a UIA on Bitshares costs about 10,000 bitshares. Now a UIA can also be a mutual fund or ETF (Exchange Traded Fund). As long as the people who make the UIA are transparent they can hold stocks in a brokerage account and set up buying and selling bots to keep their UIA Exchange Traded Fund within a close range to the NAV (Net Asset Value). As ive lost about 99% of people reading the last sentence, hopefully 1% will make a UIA to be a Mutual Fund or ETF (Exchange Traded Fund).
Bitshares is the exchange where Steem and other crypto-currencies, gold/silver and other currencies are traded. Go to bitshares.openledger.info
As I make my dolphin cry and boom boom away. To the Moon folks! To the moon
dammit - i only have 9800 BTS - no UIA for me today
if you ware wanting to make a UIA, send me a private memo on steem with your email address and I'll contact you. might be able to help if the project is cool :)
Your REQD man...hehe
Nice article. Bitshares has a huge way to go before it can dethrone Ethereum though. It's strength is also it's Achilles heal (the council has to vote and anyone can't just build) as this is often interpreted as a centralised aspect, much like a board would decide the future of a corporation.
I'm not out to hate on bitshares. I'm holding big amounts and know that later rather than sooner, bitshares will have its day in the sun and I can see an little profit on my investment.
How can the marketing aspect be rectified? GUI is improved which is sweet but it's lacking that certain appeal that Ethereum has nailed.
This is actually kind of incorrect. The council DOES NOT vote on what people can or cannot build (the BTS Holders do). In fact, that is the holders of BTS.
Additionally, the committee is actually doing the same role if you think about it as the Eth Foundation (and eth does not let ethereum holders elect--and more importantly FIRE their foundation members). Isn't this an issue? To me Ethereum is no more decentralized than BTS precisely because of this (if you don't believe me look at the DAO problem and how it forced two eth chains...
The fork after DAO exemplifies why you want elected leaders and the to enable holders to decide who makes these decisions. Not hating on eth...but anyone who says eth is more decentralized than BitShares is actually misinforming people.
Don't agree? Look up Consensys (the centralized company that pays the main project devs) and the Eth Foundation who decided to fracture the Eth community (because they didn't have the infrastructure to ENABLE their holders to decide) Just my two cents and thanks for bringing it up.
And btw, Steem (a graphene based blockchain just like BTS) has already surpassed eth in its number of tx's and has had 3sec tx's for a long time now...which will become much faster when the demand is there. So Eth actually has a long way to go before it can do what BTS does, and is less able to adapt in an organic way (the hardfork creating two chains proves this).
As far as having a "huge" way to go before it can dethrone Ethereum. I actually see it as quite the opposite. Eth has has one thing BTS hasn't. Big money from very early on Pumping it as the bitcoin killer...
If ETH and BTS had both started out with the same level of positive marketing and help from key players in bitcoin, BTS would be way past Eth imho because it can reach industrial scales TODAY (not years from now). I have no doubt eth will eventually get there (because they have the funding)...but I can tell you right now BTS achilles heal is actually that people dont know about it and those who do know of it tend to misrepresent it (as done above). Not meaning this in a bad way of course...I mean how the hell are we all supposed to be experts in every crypto?? :D
P.S. As for the marketing for BTS, I think #STEEM may help with that one because lets face it, misinformation o bitshares has been its real achilles heel ;)
Well looks like i keep jumping into this gold mine love it. Learning a lot and can't wait for some moves.
Excellent reply and I stand corrected on issues that I raised. I'll repeat that I love bts and it is undervalued considering its capabilities. That being said, Ethereum had the jump, doesn't mean bts won't/can't compete.
When I read about Ethereum Dapps like Singulardtv.com
Gnosis.pm
Akasha.world
... I get pretty excited and I don't even hold any Ether. I'm just hoping BTS gives me that level of excitement and expectation that it really is a game changer.
I'll continue to support BTS by buying the dips and holding as well as contributing on the forum and hope that steemit.com continues to be a marketing platform that works well.
Awesome work over all, please keep writing so I can learn more :)
Here's some good questions to answer about BitShares, because it will attract more stock-like investors than speculators:
What is its dilution model like? Is it fixed amount of shares, or will they issue more in the long run? Investors don't like dilution and there seems to be a lot of these shares, so it is a concern to an investor.
If ideas can be built on top of BitShares, then it's more like an exchange than an index fund or DAO. It may need to consider using something like BitExchange. On the other hand, if BitShares invests funds across ideas, then it is more like an index fund or DAO. We need to be careful about using new terms that outsiders don't understand. Let's use comparable finance terms so that outsiders get it too. For an example, when mentioning things like the DAO - it's like an index fund that requires investor input. People in finance then get it quickly.
What is its dilution model like? Is it fixed amount of shares, or will they issue more in the long run? Investors don't like dilution and there seems to be a lot of these shares, so it is a concern to an investor?
Dilution is actually something that the community can decide on. BitShares holders get to decide whether the chain should dilute to pay for future work (via worker proposals) or they can decide not to pay for development (and become deflationary). At present the community has decided it does not want dilution, so at present there over a billion bts set aside for potential development--and since the voters have basically shown the committee they prefer no dilution, the committee is considering burning over a billion bitshares...If the committee does not approach the community about this, however, and they upset the community by making a decision with which the voters disagree, they will be fired (and this can happen very quickly).
If ideas can be built on top of BitShares, then it's more like an exchange than an index fund or DAO. It may need to consider using something like BitExchange. On the other hand, if BitShares invests funds across ideas, then it is more like an index fund or DAO. We need to be careful about using new terms that outsiders don't understand. Let's use comparable finance terms so that outsiders get it too. For an example, when mentioning things like the DAO - it's like an index fund that requires investor input. People in finance then get it quickly.
BitShares is actually both. Worker proposals can be submitted and if it can pass the test of being seen as providing more value than dilution will hurt, then the community can pay for anything to be built. In addition, BitShares itself is also the platform where various projects will be traded on a decentralized, extremely scalable (see steem as proof), and versatile Decentralized Exchange (DEX). Anyone can create an IndexFund that has a tradable token on BTS and represents the value of that fund. For instance DAO does not need to be an entire new chain in bitshares (though it could be its own graphene based chain). Instead a token can be created that is meant to track the value of all listed DAO projects.
obviously something to look in to - thanks for the info-