In 2013,, the decentralized exchange Bitshares was built,, and in 2014 Bitshares was launched.. Created by Dan-Larimer.. it used delegated proof-of-stake giving 3 second confirmation times with very predictable,, reliable block production.. The first version of BitShares was built off of some of the same ideas as Bitcoin and shared some technology,, but still didn't meet the performance requirements of an exchange..
Dan-Larimer explains; 'At its most inner layer,, Bitshares is software.. To be more specific,, Bitshares is a distributed multi-user database with update permissions managed by a defined set of rules and public key cryptography.. At this level it isn’t very interesting to most people,, but is still very important.. Software is open source,, easily copied and modified,, and most importantly protected by free speech.. This means that almost nothing can stop Bitshares at this layer short of a global event that destroys almost all digital data.. Governments once attempted to regulate cryptographic software as a weapon and impose export controls.. Governments lost that battle long ago and no longer attempt to regulate or control the spread of free software.. In the case of Bitshares the software is in the Public Domain'..(1)
In April 2016 a Techcrunch article written by Neil haran classified that Bitshares used a setup and switch method to attract mass adoption.. Similar to the central app strategy,, this method establishes a user base first,, and then introduces the currency.. Bitshares and its array of associated startups is a good example of this.. Several networks with varying currencies - Steemit and their STEEM Tokens,, Peerplays and their tokens,, for instance — slowly built their user base and value exchange system,, and now they plan to adopt a central currency with Bitshares.. This allows them to create a stable base first before pooling their resources..(2)
In June 2016 Dan-Larimer in his Steemit blog told that over the past three years he have worked with the Bitshares community to implement the worlds first Decentralized Autonomous Organization (DAO) based upon many of the same principles as Ethereum's The DAO.. Money was raised,, tokens were allocated,, and token holders were given the ability to vote on how to spend community money and set blockchain parameters..(3)
From BitShares to Steem:-
In 2016 Steem was launched which had new conceptual issues.. Social media users don't want to have to pay for every vote,, they need account recovery options,, etc..... Steem also took the block rewards which are wasted in mining and redistributes them to people who are posting on the blockchain,, enabling thousands of people to become active participants through massive decentralization allocation of funds.. Steem went from concept in January to working blockchain in March to working website in July.. At this point,, Steem and Bitshares have more real world transactions occurring every day than the rest of the major blockchains combined.. Steem also has a higher female-to-male ratio of users than any other blockchain.. However,, both Steem and Bitshares are application-specific blockchains.. If you want to run multiple apps on the same blockchain,, there are significant scalability issues that need to be solved...(5)
PC=www.steem.center
