The Bancor Network (BNT), a “decentralized liquidity network” that allows users to easily convert between all tokens supported on its platform, has launched BancorX, a decentralized application (DApp) that can “function across blockchains.”
Notably, BancorX has been launched on the EOS mainnet in association with LiquidEOS, an Israel-based EOS block producer. It is reportedly the first DApp that is able to effectively interact with multiple blockchain networks.
According to BNT, BancorX allows users to automatically convert between “Ethereum and EOS-based assets.”
Converting Tokens Between Different Blockchains
The conversion process is also simple because users do not have to “deposit funds on an exchange” and “order-matching between buyers and sellers” is not required. All conversions from Ethereum-based tokens to those supported by EOS (and vice versa) will be handled by using Bancor’s native token, BNT.
BNT is the first decentralized cryptoasset that can be transferred between two separate blockchains. The launch of BancorX is an important development because previously the only way traders were able to convert between EOS and Ethereum-based assets was by using centralized exchanges.
When converting tokens via centralized trading platforms, users have to compromise on security as they have to share their private keys with the exchange.
As noted in BNT’s announcement, “users can perform token conversions between blockchains without giving up possession of their crypto” - meaning the transaction can be processed without disclosing the private keys linked to the digital assets.
Faster, More Cost-Effective Transactions
Transactions on the EOS-based BancorX platform can be processed a lot faster and there are reportedly “no transaction fees.” As noted in the announcement, the “unique features” available to BancorX users are as follows:
- “One-second transactions (as opposed to > 10 seconds on Ethereum)”,
- “No transaction fees (as opposed to gas on Ethereum which can reach upwards of $50)”,
- “No front-running risk (EOS transactions are not prioritized by gas fees as they are on Ethereum).”
BancorX was launched in order to improve liquidity and the overall efficiency of both the EOS and Ethereum networks - as it allows traders and developers to easily and securely transfer tokens between the two blockchains.
The BancorX platform reportedly utilizes a set of smart contracts to move tokens between different blockchains.
As explained by BancorX’s development team:
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.
Over 120 Ethereum And EOS-Based Tokens Supported
Currently, there are over 120 Ethereum and EOS-based tokens that may be converted through BancorX. Moreover, users can “integrate their token” with Bancor’s liquidity network by staking them via a smart contact - which is controlled only by the user.
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.