There’s a new Bitcoin service on the horizon: BitShares is a decentralized cryptocurrency and part of a financial derivatives trading system set to be launched in October. The minds behind this new platform “belong” to Invictus Innovations.
BitShares is composed of a protocol and software called Hydra with three separate services: the decentralized identity management system BitNames, the secure chat and messaging system BitCom and a peer to peer trading exchange. According to the co-founder of the project, Charles Hoskinson (also the director of the Bitcoin Education Project and head of the education committee for the Bitcoin Foundation), both the protocol and the software will be open source.
The investment to turn the idea into reality came from the Chinese private equity firm BitFund.PE, focused on funding Bitcoin-related projects. BitFund’s founder, Li Xiaoli, is also one of the directors at Invictus.
Much like the original Bitcoin’s protocol, BitShares was designed to be decentralized, private and safe. Simple is also a key word, as the creators of the service are aiming for a low difficulty level when using the platform. With this new project, Invictus Innovations wants to allow common investment actions on the trading exchange. Besides the “cryptocurrency” BitShares, this new trading system is also composed of a financial derivative called BitAssets.
“BitShares enables the creation of new Bitcoin-like cryptocurrencies that can track the purchasing power of your favorite national currency, gold, silver, oil or other commodity”, explains the founding company at their website. This means that BitShares will act as a form of collateral to back BitAssets, which in turn represents real assets like gold, silver, dollars or other currencies.
Each BitAsset pairs BitShares with one of these other assets, hedging the value of BitShares against that asset. This includes BitUSD (US dollars) and BitGold. BitAssets will also be available for Bitcoin using BitBTC, but the team won’t stop here and is already considering other cryptocurrencies.
BitShares will be mined at a gradually reducing rate, reaching zero in just 12 years and maximizing the mining rewards early on, and will have value in their own right.
And what about safety? “There are no central points of attack. Counter-party risk is eliminated by having collateral/margin/trust-free escrow built into every transaction. Transactions are atomic, with both sides being satisfied simultaneously in a single irreversible operation. Every transaction is managed by impartial self-checking open-source software so the same rules apply to everybody. This gives BitShares unprecedented immunity to risks from insolvent issuers, unscrupulous middlemen, overreaching regulators, and institutional manipulators”, states Invictus Innovations.
With the presentation of this hot new service, Atlanta (USA) will be the center of attention on October 5. In the meantime, you can discover more through the project’s white paper.
Latest posts by Maria Santos (see all)
- The 6 best Bitcoin mining software - April 24, 2016
- 5 Awesome Bitcoin stories shared by Redditors - October 16, 2015
- 9 Cryptocurrency-inspired games you should be playing - September 10, 2015