What is BitShares (BTS) Crypto Coin? The Legacy DeFi Platform Explained

BitShares isn't just another cryptocurrency. It’s one of the first blockchain platforms built from the ground up to act like a stock exchange-except it runs without any company, bank, or middleman in control. Launched in July 2014, BitShares (BTS) was designed to let people trade digital assets, create stablecoins, and settle payments directly on a decentralized network. Today, it’s not the biggest player in crypto, but its ideas shaped what we now call DeFi.

How BitShares Works: A Decentralized Financial Exchange

Most crypto exchanges today-like Binance or Coinbase-are centralized. That means they hold your money, control your trades, and can freeze your account. BitShares flips that model. It’s a fully decentralized exchange built into its own blockchain. Every trade, every transfer, every stablecoin issuance happens automatically through smart contracts. There’s no CEO, no customer service line, and no corporate headquarters.

The core innovation? BitShares doesn’t rely on automated market makers (AMMs) like Uniswap. Instead, it uses a traditional order book-the same system used by the New York Stock Exchange. If you want to buy bitUSD, you place a bid. Someone else places an ask. The trade executes when prices match. This gives traders more control over pricing and reduces slippage on large orders.

Behind the scenes, BitShares uses a consensus mechanism called Delegated Proof-of-Stake (DPoS). Token holders vote for 101 “witnesses” who validate transactions and maintain the network. These witnesses are rewarded in BTS for their work. Because it’s not mining-heavy like Bitcoin, BitShares can process trades in about 1.5 seconds-much faster than Ethereum or Bitcoin.

BitShares Stablecoins: bitUSD, bitCNY, and More

One of BitShares’ biggest contributions to crypto was the invention of market-pegged assets-what we now call stablecoins. BitShares created bitUSD and bitCNY years before Tether or USDC existed.

Here’s how they work: To create one bitUSD, you lock up at least $1.75 worth of BTS as collateral. The system automatically adjusts the collateral ratio to prevent collapse. If BTS drops in value, the system forces you to add more collateral-or your position gets liquidated. This mechanism kept bitUSD pegged to $1 even during the 2020 crypto crash, when centralized stablecoins like Tether briefly lost their peg.

Unlike centralized stablecoins backed by bank reserves, bitUSD is fully on-chain and transparent. Anyone can verify the collateral at any time. That’s why some traders still use it for cross-border payments or as a hedge during market crashes.

Technical Specs and System Requirements

BitShares Core 7.0.2, codenamed “Suez,” is the latest version as of October 2023. It includes upgrades like:

• Auto-repayment for credit positions
• One-Sided Orders (OSO) to help market makers
• Ability to edit existing limit orders
• ElasticSearch 8 support for faster data queries

To run a full node, you need:

• 4GB RAM
• 100GB SSD storage
• Stable internet connection

Official wallets are available for Windows, macOS, and Linux. There’s also a lightweight browser-based wallet called the BitShares Light Client, which doesn’t require downloading the full blockchain.

How BitShares Compares to Other Platforms

Let’s break down how BitShares stacks up against its peers:

BitShares wins on speed and transparency for financial operations. But it loses badly on liquidity and developer support. Uniswap and other Ethereum-based DEXs have exploded because they’re easier to build on. BitShares is like a Ferrari built for racing on a track-perfect for its purpose, but few people know where the track is anymore.

Why BitShares Struggled to Stay Relevant

BitShares was ahead of its time. In 2014, most people didn’t even know what blockchain was. By 2018, when DeFi took off, BitShares had already missed its window.

Here’s why:

• Outdated UI: The interface still looks like it’s from 2015. New users get overwhelmed.
• Limited on-ramps: Only 37 exchanges list BTS as of November 2023. Buying it with fiat is hard.
• Small community: Only 11,000+ members on Reddit and 14,000 on Telegram. Compare that to Ethereum’s millions.
• Developer drain: With only 12 active coders, new features move slowly. Ethereum has over 1,200.

Even Microsoft Azure once included BitShares in its blockchain services-back in 2016. But today, no major enterprise is using it at scale. Only a handful of banks reportedly tested it internally.

Is BitShares Still Worth Using Today?

For most people? Probably not. If you want to trade crypto, use Binance or Kraken. If you want DeFi, use Uniswap or Aave. BitShares isn’t the easiest or most popular option.

But if you care about:

• True decentralization in trading
• On-chain stablecoins with transparent collateral
• Fast settlement without intermediaries
• Historical crypto innovation

Then BitShares still has value. Traders who’ve used it since 2017 say the system held up during crashes when centralized stablecoins failed. One user reported settling $50,000 in cross-border payments using bitCNY in under 2 seconds-with fees under 0.1%. Traditional banking would’ve taken days and cost 3%.

The real question isn’t whether BitShares works-it does. The question is whether enough people still care to keep it alive.

How to Get Started with BitShares

If you want to try it, here’s a simple 7-step guide:

1. Download the BitShares Light Client (Windows, macOS, or Linux)
2. Create an account with a strong password (minimum 10 characters)
3. Buy BTS on an exchange like LBank, HitBTC, or Gate.io
4. Send BTS to your BitShares wallet address
5. Go to the Decentralized Exchange tab
6. Trade BTS for bitUSD, bitCNY, or other assets
7. Participate in governance by voting for witnesses (you earn fees for doing this)

Warning: Creating bitUSD requires locking up 175% of its value in BTS. If BTS crashes, you could lose collateral. It’s not beginner-friendly.

Future Outlook: Will BitShares Survive?

Price predictions from analysts suggest BTS could reach $0.0015 by 2025 and $0.0037 by 2030. But these are speculative. BTS has been volatile-its price dropped 85% in just four hours during the March 2020 crash.

The BitShares Foundation is now focusing on enterprise use. The “Suez” update added features like auto-repayment for corporate treasuries. They’re not chasing retail users anymore. They’re trying to sell the tech to banks and governments.

It’s a smart pivot. But adoption is slow. Without developer growth or major institutional backing, BitShares risks becoming a footnote in crypto history.

It’s a reminder: Being first doesn’t mean you win. You have to keep building.