Bancor is a decentralized exchange (DEX) protocol that was launched on the Ethereum blockchain. The company announced in September that it was working to port to the EOS network – another high-ranking Ethereum-based platform – and now it appears the moment has arrived.
The new system on EOS, known as BancorX, has officially gone live. BancorX seeks to allow conversions of more than 100 different EOS and Ethereum-backed assets including eosBLACK, BetDice, KARMA and Prochain.
What is BancorX?
As an open-source, cross-chain liquidity protocol, BancorX can be utilized by other exchanges and decentralized applications for free.
Bancor co-founder and head of business development Galia Benartzi commented:
We are thrilled to have completed the Bancor Network’s expansion onto EOS, as well as the cross-chain liquidity bridge that connects EOS and Ethereum-based assets. 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.
The company originally garnered funds through an initial coin offering (ICO) and raised a whopping $157 million in 2017, though it appears things have been slow to catch on. At the time of writing, Bancor is the13th most popular decentralized application and has a total of 156 users.
This is small beans compared to the figures of other single-blockchain, DEX platforms like ForkDelta and IDEX. Executives are keeping their fingers crossed that the launch of BancorX will turn things around.
How Does BancorX Work?
BancorX was jointly built with block producer LiquidEOS.
Transactions occur via BNT, Bancor’s unique token, which works on both the EOS and Ethereum blockchains and enables cross-chain conversions.
If an Ethereum token must be converted into an EOS asset, the original currency is first turned into BNT. It is then sent to the EOS blockchain where it is converted into the appropriate currency.
The BancorX development team explained the currency transition process in detail:
When a user converts an Ethereum token into an EOS token via BancorX, it is first converted into BNT, which operates simultaneously on both blockchains. Conversely, conversions from EOS-based tokens into Ethereum-based tokens occur via BNT. Throughout the entire process in either direction, the circulating supply of BNT remains unchanged.
Collaborating with EOS
Bancor also claims that its Bprotocol Foundation is looking to transfer over $10 million worth of BNT into a secure account on the EOS blockchain to improve the currency’s overall liquidity. The company is confident this could potentially boost further development of EOS applications.
The company has pledged a bounty of roughly 500,000 BNT to any developer that improves Bancor’s EOS user interface and smart contracts system.
Transactions can allegedly occur in 1 second or less on the EOS network, which is why Bancor’s team is so eager to work with it. In addition, EOS features no transaction fees or front-running risks, making it an easy mark for both cryptocurrency and blockchain investors.
CEO and co-founder of Everipedia Theodor Forselius explains:
The Bancor Protocol is the leading project in the crypto space that is bringing cross-chain liquidity and decentralized conversion functionality to EOS and Ethereum. We’re very excited to have the Everipedia IQ token listed on BancorX.