Question 1

What is BTS?

Accepted Answer

BTS is the core asset of the BitShares blockchain. It is used both for fee settlement for network operations and in connection with BitShares' decentralized trading, account permissions, and on-chain asset functions. BitShares allows users to create and trade assets on-chain; SmartCoin is an asset category backed by collateral and targeting a specific market price. Therefore, BTS is not only a trading ticker, but also the core asset used by the network to process operations and support certain asset mechanisms.

Question 2

How does BitShares' DPoS consensus work?

Accepted Answer

BitShares uses Delegated Proof of Stake (DPoS) to produce blocks: BTS holders elect witnesses by voting, and witnesses are responsible for block production according to a schedule. Holding tokens itself does not automatically qualify someone to produce blocks; becoming a witness depends on receiving continued voting support. This arrangement assigns block-production responsibilities to participants selected by voting, while retaining a channel for holders to influence the witness set by adjusting their votes. Network block production and transaction confirmation depend on witnesses performing their scheduled duties properly; when voting results change, the witnesses receiving sufficient support may also change.

Question 3

What are the characteristics of the BitShares on-chain decentralized exchange?

Accepted Answer

BitShares' decentralized exchange is a mechanism for matching and settling asset trades on-chain. Users can hold or create on-chain assets and manage related operations through account permissions. Rather than placing asset records and transactions in a single centralized ledger, the state related to these assets and orders is processed by the BitShares chain. The assets that can actually be traded, order conditions, and required fees still depend on the specific operation and network rules; “on-chain DEX” should not be understood to mean that every asset automatically has liquidity or a fixed price.

Question 4

What is the collateral relationship between SmartCoin and BTS?

Accepted Answer

A SmartCoin is a market-pegged asset on BitShares that targets a market price and is backed by collateral; it is not BTS itself. Its supply changes as users create or redeem related positions. When a SmartCoin is created with BTS collateral, the collateralized BTS is locked into the relevant position and the system generates that SmartCoin accordingly. When the position is closed or a corresponding settlement occurs, the SmartCoin supply and collateral status are adjusted accordingly. A price-peg target does not mean the price will never deviate; collateral, market prices, and settlement rules jointly affect how it operates.

Question 5

Why is BTS needed to pay fees when using BitShares?

Accepted Answer

Initiating on-chain operations on BitShares, such as creating an account, transferring funds, or trading, requires paying fees, and BTS is a core asset in the fee system. The amount a user ultimately pays depends on the network fee schedule and operation type for the submitted operation. Fees set a cost for the network to process a specific operation; they are not the price of the asset being traded. A transaction may involve placing an order, executing a trade, or asset-related operations at the same time. Fees should be checked based on the operations actually executed and the network rules at that time, rather than inferred solely from the transfer amount.

Question 6

What are the purposes of BitShares named accounts and permissions?

Accepted Answer

BitShares uses readable named accounts and supports configuring permission structures for accounts. This allows accounts to perform operations according to configured authorization rules rather than relying only on a single key. Permission configurations determine who can perform which operations on behalf of an account. Therefore, before transferring assets or modifying an account, the account being used, authorization level, and signing conditions should be confirmed. Named accounts make identification more convenient, but they do not replace verification of the recipient account and authorization settings.

Question 7

What is the relationship between network usage and market demand for BTS?

Accepted Answer

Factors related to BTS's value cannot be reduced to “the more network functions there are, the higher the price must be.” On-chain trading, asset creation, and fee payments may create usage demand for BTS, but whether this translates into sustained buying also depends on conditions such as whether users hold BTS, fee scale, market liquidity, and tradable supply. For example, SmartCoin collateral locks BTS, while closing positions or settlements may change the locked status. This can affect the amount freely available for trading, but does not independently determine the market price. To understand BTS, network usage, collateral locking, actual buying and selling, and price outcomes should be distinguished as separate links.

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