19 August 2017 1:10 pm
Bitshares provides users with powerful control of digital assets called BitAssets.
The cryptocurrency markets are notoriously volatile and regularly experience massive price swings. In order to engage in commerce, consumers and vendors need a relatively stable unit of exchange.
Bitshares solves this problem with Market Pegged Assets (MPA). Market Pegged Assets are freely traded digital assets whose value is meant to track that of a conventional underlying asset by means of contracts for difference (CFD). Put more simply, MPAs allow the creation of tokens which have a value pegged to another asset. This allows holders of the token to achieve the stability they need while maintaining the properties and advantages of a cryptocurrency. This idea is not entirely new or exclusive to Bitshares. The popular cryptocurrency Tether anchors its price to the value of national currencies like the US dollar or Yen. Tether is then backed by reserves of fiat currency.
“Every tether is always backed 1-to-1, by traditional currency held in our reserves. So, 1 USD? is always equivalent to 1 USD.” tether.to
What makes Bitshares and BitAssests so appealing is the robustness of the Bitshares ecosystem. BitAssets can be created and owned by anyone on the network. These assets are not limited to fiat and can include commodities like gold and silver. MPAs owned by the BitShares Committee are called SmartCoins. Among these are:
Bitshares also has a core currency called BTS. BTS derives its value from the demand for Bitshares services. BTS acts as a form of collateral and helps ensure the liquidity of MPAs.
“A SmartCoin (synonym for MPA) is a crypto-currency that always has 100% or more of its value backed by the BitShares core currency (BTS), to which they can be converted at any time” bitshares.org
The power of Bitshares
Bitshares offers a variety of amazing features but BitAssets are among the most powerful. BitAssets can provide stability by anchoring themselves to a stable asset such as the US dollar. They can also easily give you the means to create a diversified portfolio, with exposure to a variety of currencies and commodities. By holding Bitshares core currency BTS, you can benefit from the growth of the Bitshares blockchain and the services it provides. Bitshares users are also able to offer their own assets. User-issued assets allow individuals and organizations to issue custom tokens that suit their business model and needs. The applications for these tokens are nearly endless and include event tickets, rewards points and digital property.
To top it all off, these assets can be traded on the Bitshares Decentralized Exchange, where the security of funds rests in the hands of the user. Not only can you use MPAs to avoid the risk of volatility but you can also avoid the risk of leaving your funds on a centralized exchange that is vulnerable to attackers. The Bitshares Decentralized Exchange is also cheap, fast and efficient, claiming It can handle the trading volume of the NASDAQ, while settling orders the second you submit them.
These are just a few of the awesome features offered by Bitshares. If you want to learn more visit their website bitshares.org or join in on the discussion on Steem or Telegram.
Follow Bitshares on Twitter @bitshares