Crypto Asset Conversion Without Middlemen, Or What Is Bancor (BNT)?
Bancor is a blockchain protocol that allows you to
convert between different tokens without involving intermediaries. This is
possible through the use of reserve currencies, which allow automatic and
algorithmic pricing regardless of the volume of trade.
The ultimate goal of the project is to make smart
tokens a legal currency, that is, create a standard that will connect all
cryptocurrencies in an autonomous decentralized liquid network.
On June 12, 2017, Bancor set a record by raising $ 153 million in three
hours of the ICO.
The BNT token is Bancor’s internal currency and the
first smart token based on this protocol. The total number is 75,797,992 Bancor
tokens, but since it is a smart token, the number of BNTs in circulation
BNT transactions are processed at a level separate
from the core layer of the Casper protocol from Ethereum using the
Smart tokens can be created or liquidated at any time
by adding them to the turnover or removing from it. Consequently, the number of
tokens varies depending on the conversions taking place on the Bancor network.
Users can exchange any cryptocurrency for a BNT coin
and vice versa. It can also act as an intermediary for converting cryptocurrencies
You can get BNT by sending ETH to a specific wallet
address. The receipt of BNT tokens after sending funds occurs almost instantly.
In a similar way, you can change BNT to ETH.
More on what is Bancor:
Bancor (BNT) value
BANCOR Network Token or BNT token, is the center of
the network. It was activated in June 2017. Users can convert any token on the
network to BNT or vice versa. The main purpose of Bancor crypto coin is being
an intermediary for converting tokens between themselves. The Bancor formula is
used for calculating the speed for these transformations.
You can always get BNT by sending Ethereum to the
appropriate address. After that, you will immediately receive BNT tokens. The
same method also allows you to convert BNT to ETH. The amount of BNT in
circulation is always changing. Tokens are created when users send ETH to a
smart contract. Token destruction occurs when users sell their BNT under a
The objective of
the Bancor platform is to provide users with the opportunity to exchange tokens
without intermediaries in the form of exchanges and other operators, as well as
create their own tokens on its basis.
Automated liquidity allows you to promote tokens of
various communities and other altcoins. Users can select coins for sharing
within their city or region, and companies can create coins for use in loyalty
Initially, the project was designed for the Ethereum
blockchain and its ERC-20 standard tokens, allowing even the little-known ones
to be always freely convertible in any other automatically. In 2018, Bancor introduced
cross-blockchain exchange for enabling ETH to EOS trading and vice versa.
How does it work?
Ethereum token is converted to BNT.
BNT is sent to the address of the BancorX smart contract on Ethereum, which also receives account information for the targeted blockchain (EOS).
Once the BNT and destination address are sent to the BancorX contract, the BNT will be removed from circulation on Ethereum.
The oracles monitor the BancorX Ethereum contract and report the BNT amount and destination wallet address for the BancorX EOS contract.
BancorX’s EOS contract then releases BNT on the EOS blockchain.
This BNT can be converted to EOS or the desired token on the EOS blockchain via Relay in the Bancor network.
How the transaction validation consensus is reached? The Bancor protocol is used. It serves for the creation of a new type of cryptocurrency called Smart Token. The peculiarity of this type of token is that it can be automatically exchanged for other tokens, removing the need for an intermediary for the transaction. Some Bancor protocol contracts can be found on github.
Smart contracts on the Ethereum platform constantly hold the reserves of one or several tokens and make it possible to issue or burn your token. If the user wants to exchange 2 tokens that do not directly hold each other’s reserves, then the Bancor protocol finds this way automatically, doing the necessary operations, and produces the same result.
Smart Tokens are combined into one network, the
connecting link of which is the token of Bancor itself – BNT. Thus, at any
time, all tokens are liquid at least to BNT.
No additional fees are charged for exchanges through
the Bancor platform, only the transaction costs are paid directly to the
Ethereum blockchain itself. The price formula is described in the Bancor white
paper. There is no difference between the purchase price and the sale price
Is Bancor coin mining available? The crypto community
was recently discussing it, and people concluded that it’s not possible:
Ethereum mainnet is already overloaded with calculations, and it’s not likely
that you will be able to get some BNT. However, you can buy Bancor coin easily.
What did the Bancor development team achieve during
the years of projects existence?
After the ICO, the first major platform update was released. Within its framework, new tokens were added and a portable widget was deployed for the safe purchase and sale of tokens.
In April 2018, Bancor wallet was launched with a built-in token exchange function.
Currently, the platform supports the exchange of 93 tokens (24 of them were added in May 2018), which amounts to more than 4300 different pairs.
Added SMS login function, the ability to buy ETH with a credit or debit card.
The following events are scheduled for the near future: support for the Trezor hardware wallet, implementation of support for multiple profiles in one account, synchronization with Web3.
In the nearest future, Bancor plans and projections
are to launch a Dapp browser and expand across blockchains. The roadmap goals
are being reached one by one – the project keeps evolving.
Bancor latest news
Bancor project continues improving its services and
adds up to the list of partners and supported coins. But most importantly, it
gives users the opportunity to earn coins as the reward for their
participation. Here’s the latest news:
The new liquidity feature enables token holders earn
more and reduce fees.
Bancor (BNT) wallets
How to store Bancor coin? Usually, it’s kept in Bancor’s
native crypto wallet. However, you can store it on any Ethereum cryptocurrency
wallet or a hardware wallet, including:
Where to trade Bancor (BNT)?
On the Bancor Network exchange, you can trade BNT for
any cryptocurrency: it supports a huge variety of cryptocurrencies. Overall BNT
daily trading volume is $1 527 992. BNT trading is supported by the following
On HitBTC, you can also buy BNT for US dollars.
Buy Bancor (BNT) at Changelly
If you need to buy BNT coin quickly and with minimal
fees, do it with the help of Changelly exchange! Here, you can convert Bancor
cryptocurrency into hundreds of other digital assets, as well as fiat.
Bancor Network and Bancor Protocol allow users to
convert tokens without having to exchange them with another user due to the
high liquidity of the market. The protocol has already established itself as
popular and effective due to its ability to eliminate the counterparty risk and
simplify the entire process of token conversion. Since tokens can be added to
the network, the utility of the Bancor network should only expand in the
Thus, Bancor (BNT) coin is a great long-term
investment. Even if you don’t trade it, you can use the coins to perform fast
and convenient online crypto exchange – it makes the cryptocurrency highly
article about Bancor (BNT) should not be considered as offering trading
recommendations. The cryptocurrency market suffers from high volatility and
occasional arbitrary movements. Any investor should research multiple
viewpoints and be familiar with all local regulations before committing to an