Interview with BitShares

Bitshares is a brand of open source software based on the same blockchain technology behind Bitcoin.

Unlike Bitcoin, which is based on proof of work, BitShares is based on proof of stake, meaning that miners are not utilized.

Bitshares software is used to launch Decentralized Autonomous Companies (DACs), an idea that was first introduced to the industry by its founder, Daniel Larimer. These unmanned companies issue shares in each company, produce profits and distribute those profits to shareholders. There’s no need to trust anyone to do this, as everything is hard coded into the software.

BitShares is about making profitable companies that people want to own those shares in, and creating returns for shareholders.

In my opinion, the crypto industry feels a lot like the early dot com industry. At the time, there were great ideas with huge valuations, but few of the companies ever made any money.

In our industry today, some ideas are valued very high. But they will eventually have to earn a profit and create revenues, or become worthless. We believe fully that the first rule of business is to earn a profit, to earn revenue, and to produce more than is consumed.

BitSharesX is the first DAC launched this year. BitSharesX is a decentralized asset exchange launched by a group out of Hong Kong called DAC Sun Limited, using BitShares open source code.

Other applications that will be launched on BitShares software include voting, domains, and music.

Delegated Proof of Stake means that instead of decentralizing to every single person who has a stake in the currency, it is decentralized to a certain number of delegates. In BitShares’ case it’s 101 delegates. Delegated Proof of Stake was introduced by BitShares.

The reason you want to do that is because of the costs. The costs get too high when you pay everyone in the entire system. With our system, delegated proof of stake, you have delegates that are voted into position by everyone who uses the system. Similar to Reddit, you upvote those you support. The top 101 with the most votes become the delegates and help run the system by approving blocks.

Its not unlike a representative democracy, where you have a congress, and the congress represents the people. But the one problem with the real congress in Washington, is that you can’t take them out of office very easily. But with our delegates, you can vote the entire group out, if needed. If enough people don’t like what’s going on with the delegates, they can all be voted out immediately and replaced by the next 101 in line.

In our system, once BitShares becomes the size we believe it’s gonna be, being a delegate will pay very well. Those delegates have an incentive to protect the system that’s paying them. Its similar to being a miner except there’s no waste and the entire process is profitable from day one.

source: https://bitcoinmagazine.com/16972/exclusive-interview-bitshares/

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