What Is Bits Digit?
Bits Digit is a new way for small and medium-sized businesses to raise funding. It’s a crowdfunding platform build on the decentralized blockchain. The company is preparing to launch its ICO in August 2017.
Bits Digit has positioned its exchange somewhere between completely decentralized proposals (like Counterparty) and completely centralized ones (like Bitstamp). The developers acknowledge that decentralized approaches tend to come with overhead, for example, because they need to create an entry on the blockchain for every issued order.
Centralized exchanges, on the other hand, are more efficient, but require the exchange to take possession over the assets of traders as deposits, which can come with regulatory duties in certain jurisdictions.
That’s why Bits Digit has positioned themselves somewhere in between. Only completed trades enter the blockchain, while unfilled orders are discarded. Meanwhile, assets can be traded ad hoc and are directly transferred between trading parties, which lets the exchange act as a broker without clients’ deposits.
How Does Bits Digit Work?
There are three involved parties in the Bits Digit ecosystem, including:
Issuers issue IOUs as digital tokens. These coins typically represent a share in the company – like currencies, stocks, or any transferable asset. All the issuer does is observe completed trades as they settle on the blockchain.
Traders hold bitcoins or digital tokens with the wish of trading them for other assets. Traders typically need to be registered with the exchange in order to establish a basic level of trust.
Exchanges wait for traders to send them orders and collect orders in the order book. All usual order types are supported, including bid, ask, limit, etc. Matched trades are settled on the blockchain.
In principle, any asset pair can be traded, although in practice, market forces will probably let a dominant currency emerge (just like USD is the dominant currency in most foreign exchanges). Bits Digit has also acknowledged there could be multiple competing exchanges.
Bits Digit Features
Here are some of the core features of the Bits Digit platform that will make it secure, accessible, and unique for investors and SMEs:
Biometric Account Creation:
Bits Digit is creating a user verification system based on biometrics. The company hopes to be the first to deploy biometric authentication in a cryptocurrency exchange.
High Level Description:
Traders create an order by creating and signing a collateral transaction to send x coins to the exchange, where x is the number and type of tokens they wish to sell. Unlike with a usual transaction, this transaction is sent to the exchange and not to the bitcoin network.
Bits Digit supports partial trades. That means if you tried to sell 100 USD of tokens, but only matched with an order to buy 80 USD of tokens, then your order can still be partially filled.
The Bits Digit Exchange uses a new type of queueing system for limit orders. The system is price-spread-time dependent because it rewards market participants for quoting two-way prices and revealing information about their price expectation. Market participants who are confident that the price level will remain unchanged will offer low spreads, get preferential treatment, and move ahead in line.
Bits Digit will make it easy for investors to discover new startups through their ICO Market. That market will list small business crowdsales on the blockchain.
Traders can deposit coins into the exchange to begin trading. Coins are kept in multi-signature wallets. Both the trader’s signature and the exchange’s signature are required to execute a trade.
Bits Digit offers off-chain transaction refunds if the exchange’s private key is destroyed, which prevents users’ funds from being frozen in the multi-signature address forever.
Overall, Bits Digit promises to ensure that users don’t need to have multiple accounts across multiple platforms. You can have a single account that manages multiple aspects of your cryptocurrency holdings.
About Bits Digit
Bits Digit is based in Belize. Development began in December 2016, with live beta scheduled for launch in August 2017.
Bits Digit’s team includes J Patel, who has spent the last 18 months developing use-cases involving blockchain technology, and brings 15 years of financial business consulting to the table. Other key members include Marjorie, a longtime open-source developer and consultant with a background in technology, and Kumar, an entrepreneur and technologist who has been working on blockchain technology since 2011.
Bits Digit Conclusion
Bits Digit has ambitious plans to create the most liquid order book in the world, allowing users to easily exchange bitcoin, Ethereum, Ethereum Classic, Zcash, Monero, Dash, and Ripple with minimal slippage.
The Belize-based company also has plans to implement a crowdfunding system that makes it easy for small and medium-sized businesses to raise capital in unconventional ways – like by not relying on traditional VC funds or banking institutions.
Bits Digit’s ICO is scheduled to take place between July and August 2017. Stay tuned for more information about Bits Digit and its tokens as the company continues to grow over the coming months.
BITS DIGIT Token Crowdsale (ICO)
The BITS DIGIT token will be available for exchange during the crowdsale (ICO) campaign that will take place on 1st August 2017. During the Token sale (ICO) the total of 7,000,000 BITSD tokens will be available for sale by smart contract and with other payment options also, and will become exchangeable at the rate of: 1 ETH = 300 BITSD Tokens.
*To be revealed on July 25th before the start of the crowdsale (pre-ICO).
The BITS DIGIT Token Sale timeline:
July 25th: Presale (Pre-ICO) (700,000 BITSD Tokens available)
Inviting strategic partners with a minimum buy-in of 10 ETH + 20% bonus BITSD Tokens. The Presale will last for 5 days.
July 31st: End of the Presale
August 1st: The oﬃcial start of the BITSD Token public crowdsale (ICO) with the total of 6,300,000 BITSD Tokens available.
First week Days or Crowdsale 10%
Second week Days Crowdsale 5%
August 31st: The end of the Token Sale
The Token Sale ends, unless the total amount of tokens is sold-out earlier. Visit www.bitsdigit.com for more details regarding the BITSD Token Sale.
September 1st: The release and the oﬃcial start of the BITSD Token trading in Bits Digit exchange