Bancor is the first decentralized trading protocol allowing traders, liquidity providers, and developers to participate in the open financial market without any barriers to entry. Nobody needs permission to utilize the open-source Bancor protocol. As specified above, Bancor Network is the world’s first decentralized liquidity system. In other words, a company that allows automatically converting one token to another. It was made possible by the creation of the Bancor Network Token (BTN) active token. Based on the website, it is a digital currency with a built-in converter. It allows it to be automatically exchanged for any symbol on its network right from the client’s wallet.
The company was founded in 2016 and is located in Zug, Switzerland. According to one survey, the total BNT supply was determined at 73,605,657 BNT. This balance is taken into account by smart contracts responsible for the liquidity of this active token. On the platform side, Bancor can be reached through mobile devices and desktops through its website. Its main advantage is the time it takes to exchange currency. If an investor wishes to exchange a token, the platform will automatically provide a price without the need to go through exchanges, order books, buyers, or sellers. It is using a formula that generates a value based on the market price and available liquidity. However, the disadvantage of the platform is that it does not provide any support for fiat currencies and requires investors to be familiar with the Ethereum universe to easily operate this exchange.
On July 9, 2018, Bancor suffered a cyberattack, with total damage of $ 23.5 million in various currencies. It is declared that this protection breach was committed with a wallet to update active contracts. As a consequence, the company decided to freeze BNT to mitigate the damage. This action was profoundly criticized by the creator of Litecoin, Charlie Lee. He believes that the Bancor is not completely decentralized. Because it cannot only lose customer funds but also freeze customer tokens.
Bancor DAO
Bancor is held and managed by its community as a Decentralized Autonomous Organization (DAO). The Bancor Protocol is administered by a democratic and transparent voting system that allows all stakeholders to participate and shape Bancor’s future.
What is cryptocurrency
The Bancor program is a resource that provides the user to develop tokens that can be exchanged within the program. Yes, we understand that it is a little confusing, but now we will try to clarify. Bancor is based on the technology and tokens of the Ethereum network. You already know that based on Ether, each person can develop their symbol based on ERC20. Every day, more and more projects are being created based on Ether, and the number of tokens is growing accordingly. Ethereum is an ingenious network that provides many opportunities for developers who, after forming a project, face the problem of selling symbols.
What is the uniqueness of Bancor?
Bancor The Bancor platform greatly simplifies this exchange process, and it does it in the following way. All ERC20 tokens will be maintained by the Bancor platform, on which they can be converted into a “homebrew” BNT token, after which they can be exchanged for the required token or remain in the Bancor equivalent. Such a chain allows you to exclude third parties from the chain in the form of exchanges, which will earn their commission on the transaction. When using Bancor to exchange tokens, there will be no fees.
Bancor benefits at a glance
Above we tried to describe the advantages in simple language, but now we will mark them, as they say in the column:
- The ability to create your tokens;
- Shortage of commissions;
- The exchange at the indicated prices, no slippage, etc.
Cryptocurrency prospects
Bancor (BNT) In addition to supporting ERC20 tokens, Bancor will also have its symbol, which has the ticker BNT. The Bancor (BNT) value will depend on the value of the marks held on the platform. Roughly speaking, the BNT token will reflect the state of affairs of symbols within the program, similar to the Dow Jones index in the stock market. This idea attracted a lot of attention, and already at the ICO, the project was able to attract USD 150,000,000, which was an insane success at that time. We believe Bancor will be a token that will skyrocket in value in 2018. The price of $ 20-30 for Bancor is quite evident.
Conclusion
We hope that after reading the article, you understand the essence of creating this platform, and what functions it carries in itself. To buy BNT tokens, you can use the services of the Binance exchange or buy them on the Bancor Network using Ethereum.
