Bancor has announced the launch of its new liquidity network called BancorX which was designed to support communication between the EOS and Ethereum Networks.
Bancor which is an autonomous liquidity protocol designed for ERC20 tokens revealed that the BancoX network successfully links the two mainnets by moving BNT. The network is designed to simultaneously issue and destroy the digital token on several networks. This strategy ensures a constant and stable BNT supply during the chain-to-chain conversion. All BancoX transaction hashes are recorded and can be fully verified on both blockchains.
“BNT is designed to function concurrently on both EOS and Ethereum in order to enable cross-chain conversions,” Bancor pointed out in a statement.
The #Bancor Network announced the launch of a new generation crypto exchange service. The new service acts as a fundamental disruptor to the existing exchange paradigm that requires depositing funds on a centralized exchange, or order matching on a DEX. https://t.co/MJLgAyXMlW
— CryptoSlate (@cryptoslate) November 7, 2018
BancoX will enable smooth interblockchain interaction
Bancor also noted that BancorX will facilitate automatic conversions between EOS and Ethereum blockchains without requiring users to deposit funds on a cryptocurrency exchange. It will also not require order matching between sellers and buyers as was previously the case. Bancor also revealed that the aim of the project was to eliminate the friction between EOS and Ethereum. It also added that the new launch will facilitate more utility and utilization while also making sure that users enjoy a unified experience.
Blockchain interoperability will open doors for more possibilities through token-powered applications. There are many blockchains in the market and the lack of interoperability has been a major drawback that complicates things. There would be so much flexibility if all the cryptocurrencies were operated on one blockchain. However, that is not the case and developers have been working towards creating solutions that would allow the different blockchains to be seamlessly interconnected.
BancoX will facilitate advantages such as faster transactions
Some of the benefits according to Bancor will include no transaction fees, faster transactions, and zero front-running risk. Banco also revealed that it incorporated a fail-safe into the new framework. It features a transfer quote in BancorX smart contracts and its function is to assign the maximum number of BNT that can be transferred from one chain to another at any given time.