BitShares Forum
Main => General Discussion => Topic started by: Voyager_8 on January 29, 2017, 05:00:49 pm
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Hi, I am just trying our BItshares, I downloaded the client on bitshares.org and am looking at the integrated exchange feature. Is this just connecting to Openledger.info on the backend? From my understanding Openledger is a counterparty like any old exchange, the assets they issues like OPEN.BTC have no proof of reserves or anything you just trust they have the equivalent amount of OPEN.BTC to support trades, is this correct? The bitshares website talks alot about the DEX so does it exist on the client I downloaded and when I place trades I am trading with others using the client or how does it work? Thanks!
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Hi, I am just trying our BItshares, I downloaded the client on bitshares.org and am looking at the integrated exchange feature. Is this just connecting to Openledger.info on the backend? From my understanding Openledger is a counterparty like any old exchange, the assets they issues like OPEN.BTC have no proof of reserves or anything you just trust they have the equivalent amount of OPEN.BTC to support trades, is this correct? The bitshares website talks alot about the DEX so does it exist on the client I downloaded and when I place trades I am trading with others using the client or how does it work? Thanks!
The backend is the Bitshares blockchain, that is also the case for Openledger. The OPEN. X assets have the problems you mention, but other assets like bitUSD or bitCNY are free of counterparty risk.
All trades also happen in a decentralized manner on the blockchain, no matter who the issuer is.
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Basically, on bitshares, there are not only 'transfers' like in bitcoin but also 'sell-at-price' offers that you can put into a transaction. The matchin of buy and sell orders is done by the blockchain and assets are then swapped beween the two parties involved
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Ok understood now, thanks guys, will keep investigating.