The first decentralized exchange: a brief history and the main advantages
Working with the centralized exchanges, users are often faced with certain difficulties: that hacking, theft of funds, financial fraud involving the management of the sites. All of this undermines the credibility of traditional cryptomeria: the market needs more robust and modern tools. To solve this problem by means of decentralization. Consider the distinctive features and advantages of BitShares, the world’s first decentralized exchange.
The story of the creation of BitShares
In June 2013 the entrepreneur Dan Larimer has decided to enter the market with a new idea: to exchange Fiat money for bitcoin and Vice versa without a Deposit in cash, and by providing a pledge of other scriptaction. He presented the future project Charlie Hoskinson, co-founder of Ethereum. Expert helped to develop a business plan. Later, the project was presented to the Chinese magnate Li Jialai, who agreed to invest in the development.
In July 2013, Hoskinson and Larimer created the Invictus Innovations company, and in October introduced the BitShares project at the conference in Atlanta.
The main goal of the Larimer was the development of a blockchain-based platform for startup businesses, which would work on the principle of decentralized Bank and exchange. But he understood that to create such a service takes time: that’s why was launched BitShares PTS (ProtoShares) is a clone of bitcoin, which made a minor change. Later tokens was planned to enclose to Bitshares. The first PTS block was created on 5 November 2013.
After some time, Larimer reveals the lack of mining: there is centralization of the network in countries with cheap electricity. A month later he announced the replacement of the Proof-of-work to Proof-of-stake: this would be used to support network and modem. And on December 8 2013 was presented a new algorithm – Delegated Proof-of-stake. 19 December it runs on BitShares.
In October 2015 Bitshares starts to work in the ecosystem of Graphene: it provides a mechanism of consensus dPoS.
The key benefits of BitShares:
Traditional exchanges use their own server for storage of assets: that’s why the risk of cracking is still high. Users of decentralized sites have access to personal assets with private keys: this approach is able to ensure maximum safety.
Network BitShares users can save privacy: transactions are public, but they are not tied to identity, identification is not required.
BitShares – plataforma open source: it provides the maximum possible transparency.
Trade various assets
On BitShares you can create assets privjazannye to shares, bonds or indecom. In addition, the platform users can create their own tokens.
Network BitShares quickly committed transactions: the developers claim that the system is capable of processing 100,000 transactions per second.
In BitShares there are no limits on withdrawals do not require additional verification for transactions with large amounts.
In contrast to other blockchains, wallets platform represent user names, not character set.
BitShares has the ability to store funds on a decentralized platform and to trade tokens that are tied to real assets. This Conceria enhances the user experience and translates the activity of cripture to a more advanced level. It is possible that in the future, these platforms will replace traditional centralized exchanges.