NEW YORK (InsideBitcoins) – Daniel Larimer is the founder and chief developer at BitShares, an open source software company based in Virginia. Larimer is the creator of the concept of DAC’s, or decentralized autonomous companies and remains one of the thought leaders in the industry. The company’s flagship concept is bitUSD, a digital currency that solves some of the fundamental weaknesses inherent in Bitcoin.
Larimer will be presenting the keynote address later today at the Inside Bitcoins Conference in Las Vegas and prior to the event, spoke with Darnell Jackson.
Even with the most innovative technology there’s always difficulty explaining how it works for newbies, recently you described BitShares as a “crypto-equity in a decentralized bank.” This presents two new concepts: crypto equity and decentralized banking. Can you explain how this provides value for the average consumer who’s used to fiat?
“The value of BitSharesX is that it allows users to own completely private, secure crypto-assets that are out of the eye of anyone who would spy on, seize or steal what belongs to them. They can also own shares of decentralized companies that earn profits and share those profits with the shareholders. People are now sovereign over thier own money and equities.
“The fact that BitSharesX is fully decentralized means that they do not need to trust anyone, including BitShares, as the code is open source and exists in no one central location or jurisdiction. Additionally, users can earn interest on their money, something they cannot do with Bitcoin or in any significant way with a standard bank checking account.
“Add to that transaction times that are 10 times faster than Bitcoin, no public keys, complete privacy, orders of magnitude less waste, and nearly free transactions and you have a system that is superior to Bitcoin and fundamentally different from the standard financial system in many ways. It’s a tremendous technology with immense potential and explains how we’ve seen BitSharesX become the fourth largest company in the industry less than two months after its launch.”
Why are BitShares transactions so much faster than Bitcoin? What are some other noteworthy benefits?
“BitShares is based on DPOS, which is a ‘delegated’ proof-of-stake system. It has transaction times of only 5-10 seconds versus Bitcoin’s 5-10 minute confirmation times. Also noteworthy is TITAN, which stands for Transfer Invisibly To A Name. This technology allows users to simply choose a name, register it, and use it as their account name.
“No longer is there any need for long public keys, QR codes, etc. inherent in Bitcoin. If your user name is johnsmith or you have an anonymous name like bitsharesguy22, that is all I need to know to send you shares or bitAssets to another user in the system. It’s truly simple compared to many other systems currently used in the industry.”
BitShares offers solutions in several industries such as banking, domains, and music. Can you mention the industry you found the most engagement so far from users? Also, can you talk about the future industries that you find most exciting and why?
“We have been focusing on banking and exchanges lately, but there are many more industries soon to be powered by BitShares.
“In November, the first BitShares Music company will launch, allowing people to buy shares in a song rather than copies of a song. Imagine fans can now earn a living by promoting the very thing they are most passionate about. Artists can now truly own equity in their songs and the entire marketing model that’s been established in the music industry can be turned on it’s head.
“We’ll soon have companies in the charity, domains, and voting industries. Each of these will be powered by BitShares, the open source software of choice for decentralized companies.
“We will launch companies, but it’s not entirely up to us, as more and more smart entrepreneurs will choose BitShares to launch their ideas. BitShares goes way beyond mere currency, which is why we’ve always said BitShares is “Beyond Bitcoin.” It’s truly an exciting time to see what’s possible with the blockchain as we expand the reach of this technology.”
Follow Darnell Jackson on Twitter: @FreedomMMC