I am working on explaining our technology in terms that are understandable. This should describe how BitShares works without getting into jargon or assumed knowledge of Bitcoin.
Our Technology
BitShares brings us the future of banking based on relatively simple technology that is easy to understand because it merely automates something that could be done with pen and paper.
The BitShare - known as BTS, is the foundation upon which everything else is built. A BTS is a digital asset that has a value determined by the market. You can think of it like the stock of a bank. Unlike stock in traditional banks a bitshare confers no legal rights and is not a security. BTS are created when individuals make capital contributions that contribute to the growth of the BitShares ecosystem.
Democratic Governance - 101 individuals, known as delegates, are elected by gaining the approval of the most bitshare holders. Each bitshare is allowed to approve of up to 111 delegates. Once elected these delegates are paid a salary approved by the bitshare holders to grow, secure, and maintain the network. The process used to select the delegates is known as approval voting and in theory all 101 delegates could have 100% approval by all bitshare holders.
Transparency - the core of BitShares is transparent accounting that allows everyone to audit the accounts and prove the system is solvent and all transfers are authorized.
Irreversibility - every transaction is added to a public ledger that is signed by the delegates approved by the bitshare holders. After the majority of delegates have publicly signed the ledger containing your transaction it becomes a permanent part of history.
Unforgeable Digital Signatures - BitShares uses well known cryptographic signatures that allow you to securely sign every transfer from your account. Without your digital signature no one in the world can spend your money. Cryptographic signatures are mathematically impossible to forge or guess.
Backed Assets - All balances for gold, silver, or national currencies are backed by three times their value in BTS. These balances are known as BitAssets. They are created when a BTS holder wishes to borrow a dollar from BitShares and secures their loan by using BTS as collateral. The delegates ensure that the loan is called and repaid long before the collateral becomes worth less than the loan. A BitUSD or dollar deposit can be thought of as an IOU the value of a dollar from the BitShares network. They are only redeemable for a variable number of BTS which will have the market value of a dollar.
Blockchain - Everything described above is built on the technology of a blockchain which was first introduced by Bitcoin. A blockchain is nothing more than a transparent global transaction record that follows defined rules for accounting and governance secured by digital signatures.