Bancor, the liquidity protocol, launched yet another useful solution for traders around the world. Thanks to its BancorX technology, the platform will now be able to allow investors to convert between digital tokens based on the EOS and Ethereum blockchains. The announcement came this Monday and was greeted with joy among the crypto community.
Before this development, people who wanted to trade EOS-based assets for those in the Ethereum blockchain had to do it through a crypto exchange, and the process was somewhat tricky because users would first need to deposit their funds to the exchange and be charged a commission, place an order, and wait until the exchange provided the other digital coin, with another commission involved.
The Introduction of the BNT
The Bancor protocol is able to convert the token that a person holds (whether it is in the Ethereum blockchain or in EOS’) into a new token that goes by the name of BNT (Bancor’s Network Token.) BNT is the first coin that has the capability of moving between blockchains.
The BancorX platform is now live on the EOS mainnet. Eyal Hertzog, who acts as Bancor’s Product Architect and the initiative’s co-founder, is quoted by Finance Magnates as saying that the “cross-chain functionality increases the utility of BNT as an inter-network token, connecting the EOS and Ethereum ecosystems today, and vastly more blockchains in the future.”
The Middle Men of the Industry
Thanks to the BancorX decentralized application (dApp,) users will not necessarily have to go to crypto exchanges to trade cryptocurrencies. Bancor will now effectively be “middlemen” in numerous transactions in the globe despite not being self-labeled as such.
Going to exchanges can be inconvenient for users for many reasons, but BancorX provides the option of omitting to have to deposit with an exchange, as well as avoiding the transaction fees associated with their use.
As an added benefit, transactions using the BancorX product are significantly faster than those performed through other means. According to Bancor, they can perform a transaction in one second with BancorX, whereas those in the Ethereum blockchain usually take something in the neighborhood of 10 seconds.
A Foundation for the Future
The development and launch of the BancorX dApp is the “first move of its kind,” and it sets a foundation for further platforms to be included in cross-blockchain trading. Galia Benartzi, who is Bancor’s co-founder and current head of business development, explains that “the ability to easily convert assets cross-chain points to a future in which token projects and users are empowered to seamlessly interact with any blockchain which best suits their needs.”
A Little More about Bancor
Bancor is a protocol that provides users the opportunity to receive and send funds while supporting different cryptocurrencies under the ERC20 standard, implementing automated price, market stabilization measures, calculations, and providing increased liquidity when compared to decentralized exchanges (DEX.)
Bancor offers a more appropriate atmosphere for trading digital assets than traditional crypto exchanges, with a simple and straightforward approach and design, and with the ability to support all ERC20 tokens.
By Andres Chavez