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BitShares is a user-operated, on-chain exchange and asset platform where you can hold your keys, trade peer-to-peer, and help govern the network with your BTS token stake.
BitShares in Plain English
| At a Glance | Details |
|---|---|
| Core purpose | Self-custodial trading and issuance of on-chain assets |
| Native token | BTS (for fees, voting, collateral) |
| Consensus | Delegated Proof of Stake (DPoS) with elected witnesses |
| Settlement | Order-book matching on chain; near-instant finality once included in a block |
| Wallet identity | Human-readable account names with role-based keys (owner, active, memo) |
| Flagship feature | SmartCoins (e.g., bitUSD) backed by on-chain collateral & price feeds |
| Governance | Token-weighted voting for witnesses, committees, and worker proposals |
How BitShares Works
Accounts, Keys, and Human-Readable Names
On BitShares, your wallet controls an account with a human-readable name (e.g., yourname). You manage three key types: an owner key (ultimate control), an active key (spending, trading, voting), and a memo key (encrypting memos). You can assign permissions to individuals or multisig groups, giving you flexible control over how transactions are authorized.
Delegated Proof of Stake (DPoS) and Governance
DPoS means BTS holders vote to elect witnesses (block producers) and a committee (parameter oversight). Witnesses produce blocks and publish price feeds used by SmartCoins. As a BTS holder, you directly influence block producers, fee schedules, and development budgets via worker proposals. Voting is continuous—you can update your preferences as your views evolve.
The Built-In DEX (Decentralized Exchange)
BitShares runs a native order book for spot trading. You can place limit orders, cancel them on chain, and settle peer-to-peer without giving custody to an intermediary. Each market (e.g., BTS/bitUSD) has its own order book. Matching happens at the protocol level, and settlement occurs when your order fills in a block.
Tokens on BitShares
BTS: The Network Token
BTS pays network fees, counts for voting power, and can be used as collateral. Holding BTS lets you participate in governance and shape priorities—from which witnesses are active to which proposals get funded. Many wallets let you lock in your voting choices by selecting proxy voters you trust or by voting directly on each slate.
SmartCoins (Market-Pegged Assets)
User-Issued Assets (UIAs)
UIAs let projects and communities create branded tokens on BitShares. Issuers define supply rules and permissions (e.g., transfer restrictions, market fees) and may list their assets on the DEX. As a user, you can hold UIAs in the same wallet and trade them alongside BTS and SmartCoins.
Using the BitShares Wallet
Choosing a Wallet Interface
You can access BitShares through several interfaces, including web and desktop wallets maintained by community teams. A beginner-friendly route is a desktop app that stores your encrypted wallet locally and connects directly to BitShares full nodes or API nodes. Ensure you understand where your keys live and how to back them up before moving value into the wallet.
Set-Up Checklist (Use Once)
- ✅ Pick a reputable BitShares wallet interface (desktop or web).
- ✅ Create an account name and generate your owner, active, and memo keys.
- ✅ Make an encrypted backup (and store it in at least two safe places).
- ✅ Acquire a small amount of BTS to cover network fees.
- ✅ Add markets you care about (e.g., BTS/bitUSD) to your watchlist.
- ✅ Configure your voting: choose a proxy or vote directly for witnesses/committee.
Trading on the DEX: A Beginner’s Walkthrough
Placing Your First Limit Order
- Open your wallet and navigate to the Exchange tab.
- Select a market pair (e.g., BTS/bitUSD).
- Enter your price and quantity, review the estimated fee, and place a limit order.
- Your order appears in the on-chain order book. If the market reaches your price, it fills automatically.
- Filled trades settle to your account balance; you maintain custody the entire time.
Typical Actions and Network Fees
Fees are protocol-level and paid in BTS. Interfaces show the fee before you confirm:
| Action | What it covers | Notes |
|---|---|---|
| Place/cancel limit order | On-chain order submission/cancellation | Shown before confirmation |
| Transfer assets | Peer-to-peer token transfers | Optional encrypted memo |
| Create UIA | Token creation on chain | Advanced users & issuers |
Understanding Orders, Books, and Execution
A limit order executes at your price or better. The order book lists bids (buy orders) and asks (sell orders). Spread is the gap between the top bid and top ask. Liquidity comes from traders posting orders; as participation grows, spreads typically tighten. You can manage exposure with multiple small orders, and you can cancel/replace orders at will—each action is on chain.
Participation and Governance
Voting: Witnesses, Committees, and Proposals
Every BTS you hold conveys voting weight. In your wallet, you can vote for witnesses who produce blocks and contribute price feeds, and for committee members who help manage network parameters. Through worker proposals, you can fund development or maintenance tasks from a shared pool. If you prefer, assign a proxy—a delegate who votes on your behalf.
Price Feeds and SmartCoins Health
Witnesses publish price feeds that guide SmartCoin collateral mechanics. The design encourages healthy collateralization and orderly market behavior for assets such as bitUSD and other market-pegged tokens. As a user, you see feeds reflected in wallet interfaces that show collateral ratios, maintenance levels, and settlement options where applicable.
BitShares vs. Centralized Exchanges
| Feature | BitShares DEX | Centralized Exchange |
|---|---|---|
| Custody | You keep keys and funds | Exchange holds your funds |
| Order matching | On-chain, transparent | Off-chain, internal ledger |
| Fees | Protocol fees in BTS; shown before confirm | Exchange-defined; varies by tier |
| Listings | UIAs & SmartCoins issued on chain | Exchange-curated listings |
| Governance | Token-holder voting (DPoS) | Shareholder/management decisions |
Practical Workflows You’ll Use
Sending and Receiving Assets
To transfer tokens, you specify the recipient’s account name, amount, and (optionally) an encrypted memo. Transfers finalize on chain, and the recipient’s balance updates after block inclusion. Many interfaces let you save frequent payees and label transactions for clean bookkeeping.
Creating a Watchlist and Alerts
In the exchange view, star the markets you care about—BTS/bitUSD, UIA pairs, or other SmartCoins—and pin them to your dashboard. Some interfaces offer local notifications when orders fill, when balances change, or when specific price conditions are met.
Issuer and Builder Corner (Optional, When You’re Ready)
Launching a User-Issued Asset (UIA)
If you’re a project or community lead, you can create a UIA with rules for supply, precision, and market fees. You’ll define permissions (e.g., whether the asset can be frozen, whether whitelist/blacklist applies) and then publish to the DEX. Early on, most issuers focus on clear documentation, liquidity incentives, and robust communication with stakeholders.
Working with SmartCoin Positions
Advanced users open collateralized positions to mint SmartCoins. You lock BTS as collateral, mint the target SmartCoin, and manage your collateral ratio. Wallets show critical parameters, including a maintenance level and settlement options. While this is a powerful tool, it’s best approached after you’re fully comfortable with orders, balances, and wallet backups.
Helpful Reference Boxes
BitShares Glossary (Beginner-Friendly)
Account: Your on-chain identity, represented by a human-readable name, controlled by keys.
BTS: Native token used for fees, voting, and often as collateral.
DEX: Decentralized exchange—order matching and settlement occur on the blockchain.
DPoS (Delegated Proof of Stake): Voting-based consensus where elected witnesses produce blocks.
Witness: Elected block producer that also publishes price feeds for SmartCoins.
Committee: Elected group that oversees protocol parameters such as fees.
Worker proposal: Budget system to fund development and maintenance tasks via BTS holder votes.
SmartCoin: Market-pegged asset (e.g., bitUSD) backed by on-chain collateral and guided by price feeds.
UIA (User-Issued Asset): A token created by a project or community on the BitShares chain.
Collateral ratio: The value of locked collateral relative to the SmartCoins issued.
Your First 10 Minutes on BitShares
- Install or open a BitShares wallet interface and create your account name.
- Back up immediately and verify you can restore from your backup file and passphrase.
- Acquire a small amount of BTS for network fees and add it to your wallet.
- Star two markets you care about—e.g., BTS/bitUSD and a favorite UIA pair.
- Place a tiny test limit order to experience the full flow from order to fill.
- Explore the Voting panel and either pick a proxy you trust or cast direct votes.
