Is this how Bitshares works?

[robrigo]

So after reading up, can someone confirm or deny this is how Bitshares works please?

1) So, basically Bitshares is composed of two things, Assets which track/are equal to real world items(such as 1 BitUSD= 1 USD), and the decentralized exchange, where you can trade those assets for BTSX(Bitshares) coins.

2) A DAC is where you get income proportional to your stake, similar to staking in normal PoS coins where you get a certain % interest from holding the coin in your wallet for (x) number of days.

3) There are 100 delegates, which may be voted upon by shareholders. Delegates represent the shareholders in the sense that you need 51% approval to make irreversible votes(51% attack?), and having 100 delegates represent the majority of the shareholders makes it much easier to accomplish the 51% approval in a fast amount of time.

Overall) So putting it all together, Bitshares is similar to a decentralized government or corporate entity, it has delegates that are voted upon to represent the majority of the shareholders, a decentralized exchange to exchange assets for their real world counterparts, and all shareholders or people holding BitshareX, gets paid proportionally to the amount of BitshareX they hold. Basically, Bitshares gives up mining as in PoW(Bitcoin) for a staking approach(similar to normal PoS), but with the added bonus of having a decetralized asset exchange and 100 delegates to represent the shareholders in the Bitshares network.

I just have one question, about the assets, are they created by users themselves? So similar to other decentralized exchanges, I can create my own asset and peg the value to 1 USD?

BitSharesX (soon to be rebranded as just BitShares) is the DAC. "DAC" is a metaphor for explaining the network; the Decentralized Autonomous Company is a decentralized peer to peer network similar to Bitcoin but different in that the value spent securing the network can be used to bolster it as well (instead of ending up in the pocket of power companies to the tune of $500 million annually in the case of Bitcoin). DACs are secured by delegates which are "hired" by the stakeholders via approval voting. The delegates are the block producers; 101 of them are active at any given time and they can set a pay rate and campaign for the voting power of your stake by offering some value back to the ecosystem (development, marketing, reliability, etc).  If a delegate fails to live up to their expectations, or are intentionally malicious they may be "fired" by the stakeholders removing their vote from that delegate. Delegate slots 102-200 are standby delegates, ready to produce blocks if someone is voted out of the top 101.

BTSX is currently the token for the network (soon to be rebranded as BTS); all of the transaction fees are paid using BTSX, and BTSX is used to collateralize the market pegged bitAssets (like bitUSD). There is no concept of "staking" your BTSX to receive more; although you could profit from covering a short order for a market pegged asset if the value of BTSX vs. the asset rises between the moment you fill the short and the moment you cover it.

BitAssets provide yield which is paid from the market transaction fees out of a reserve fund. Short orders compete on % interest paid.

I would say your comparison is correct, except that delegates do not have that much voting power (they don't act like representatives in a republic; rather the BitShares democracy is more liquid and based on overall stakeholder approval). They just get paid to produce blocks, and are responsible for keeping their node reliable, producing feeds for market assets, and updating the client quickly, amongst other things I am sure I am missing.

Market assets (bitAssets) aren't issued by users. In order for a market asset to start trading, 51 of the delegates must be producing a price feed for said asset. There are user issued assets as well, but the market issued assets supply starts at 0 and they must be shorted ("minted") into existence by putting up the required BTSX as collateral (3x). User issued assets also exist though, so you could issue your own asset on the BitShares exchange and distribute the supply as you see fit.

[Mysto]

1) Yes
2) You get interest for holding bitAssets. The interest is generated from the people who short.
3) 101 delegates and yes to the rest

I wouldn't call it a decentralized government. DAC stands for Decentralized Autonomous Companies.
There are 2 types of assets user-issued and market-issued. Market issued assets need delegates to publish price feeds for them to even exist where as user issued assets don't need price feeds.

[Jesen]

So after reading up, can someone confirm or deny this is how Bitshares works please?

1) So, basically Bitshares is composed of two things, Assets which track/are equal to real world items(such as 1 BitUSD= 1 USD), and the decentralized exchange, where you can trade those assets for BTSX(Bitshares) coins.

2) A DAC is where you get income proportional to your stake, similar to staking in normal PoS coins where you get a certain % interest from holding the coin in your wallet for (x) number of days. The DAC is like the blockchain(?)

3) There are 100 delegates, which may be voted upon by shareholders. Delegates represent the shareholders in the sense that you need 51% approval to make irreversible votes(51% attack?), and having 100 delegates represent the majority of the shareholders makes it much easier to accomplish the 51% approval in a fast amount of time.

Overall) So putting it all together, Bitshares is similar to a decentralized government or corporate entity, it has delegates that are voted upon to represent the majority of the shareholders, a decentralized exchange to exchange assets for their real world counterparts, and all shareholders or people holding BitshareX, gets paid proportionally to the amount of BitshareX they hold. Basically, Bitshares gives up mining as in PoW(Bitcoin) for a staking approach(similar to normal PoS), but with the added bonus of having a decetralized asset exchange and 100 delegates to represent the shareholders in the Bitshares network.

About the assets, are they created by users themselves? So similar to other decentralized exchanges, I can create my own asset and peg the value to 1 USD?
I'm also a bit confused about the DAC, is the DAC similar to a blockchain? Or is the DAC simply the staking process where every shareholder gets income proportional to their stake? Is a DAC a fork of the original Bitshares X blockchain?