I have another question, on the homepage under technologies it says:
https://bitshares.org/technology/decentralized-asset-exchange/Every Dollar, Euro, bitcoin and ounce of gold held as a SmartCoin on the BitShares exchange is backed by up to twice the reserves of traditional centralized exchanges. The traditional banking system has long practiced what I like to call fictional reserve banking, more commonly known as fractional reserve banking. In the Bitcoin ecosystem, we demand at least 100% reserve. A single hack, mistake, or theft can quickly turn a 100% reserve system into a fractional reserve system, or worse, a no reserve system. Without any reserves, it is unlikely that an exchange can give you the funds it owes you.
By always maintaining reserves, you can rest assured that BitShares is solvent in almost any market. All of the reserves are kept as BTS held on the blockchain, and they cannot be stolen, because there are no private keys that can be compromised to steal the reserves.
- How does this work?