Related Articles

What is Bancor Network (BNT)?

BitForex Editor
Aug 31, 2020

Bancor Protocol is a standard for the production of Smart Tokens, a new generation of cryptocurrencies. Bancor Network is an exchange (a decentralized one) that allows you to keep any token and convert it to another token. The exchange is done at an automatically calculated price, not with any counter-party.

Bancor Network permits users to carry out currency transactions and exchanges for others without any mediator. For example, Bancor Network (BNT) is a standard which converts tokens based on smart contracts. The Initial Coin Offering (ICO) of the Bancor currency project began in May 2017, and in less than three hours, the team had gathered 396,720 ETH from 10,855 investors by the end of the ICO. The Bancor Network aimed to exchange tokens (with the ERC-20, which is a technical standard for token implementation) with other coins without the help of cryptocurrency stock exchanges and markets. This aim helps to remove fees that should reduce a user's expenses during the exchange process and increase the token liquidity. The Bancor Network (BNT) had a precise limit of coins distributed during the Initial Coin Offering (ICO), so the Bancor Network coin mining is unavailable.

Bancor Network lists 24/7 support, transparent pricing, and credit card acceptance as three of their main advantages. These features are agreeable advantages. The Bancor Network platform promotes hundreds of different tokens, for example, BAT, ENJ, SRN, CHX, BNT, TKN, etc.  Bancor Network does not directly prevent US investors from trading.

Decentralized Exchanges

Decentralized exchanges are gaining more market shares than their centralized counterparts, as they’re becoming more popular.

Decentralized exchanges do not need a third-party to store funds. Instead, you’re always in control of your coins and can oversee transactions with whoever wants to buy or sell your coins. With decentralized exchanges, you don’t need to give out your personal information, making it possible to create an account and immediately begin trading. There is a lesser risk of server downtime because decentralized exchanges have their servers spread across the globe. Decentralized exchanges possess order books with lower liquidity, unlike the regular top crypto exchanges.

Bancor Network Roadmap

Given below is a progressive roadmap of the Bancor Network:

1.BancorX launched on EOS TestNet

2.BancorX launched on EOS MainNet

3.Unify Ethereum/EOS cross-chain experience

4.Launch Dapp Browser

5.Expand Across Blockchains

Bancor Network Trading View

There are different trading views for other exchanges, and there is no case of “this review is the best." It would be best if you always ascertained which trading view is the best that suits you. All reviews usually have the following in common, the price chart of the chosen cryptocurrency, order history, and all the order book or parts of the order book.

Bancor Network Fees

Bancor Network Trading Fees

It is essential to consider the fees at any exchange. At the Bancor Network, there are two significant things one can do that are subject of fees:

1.Convert tokens

2.List tokens.

No fees are charged for these things at Bancor Network. The lack of charges is majorly a very competitive aspect of this exchange.

Bancor Network Withdrawal Fees

No withdrawal is made from the Bancor Network because no assets are ever deposited into the Bancor Network. This can as well mean withdrawal fees are not relevant when considering this exchange.

Funding Bancor Network

The focus of this exchange is on cryptocurrency to cryptocurrency trading. Although, through the partnership with Simplex, fiat currency funding is possible.

Simplex is a payment service organization from Israel. The Bancor Network users can purchase cryptocurrencies, e.g., Ethereum, with a credit card, because of Simplex's partnership. Unlike the crypto- to crypto- trading at Bancor Network, using Simplex to purchase cryptocurrencies is not free of charge because Simplex is a third-party payment service. 3.5% is charged by Simplex per trade. Therefore, if you USD 10,000 worth of Ethereum, Simplex will charge USD 350 (and a USD 10 minimum flat fee) for initiating the purchase.

Bancor Network Security

Decentralized exchanges typically have their servers spread out. This differs from centralized exchanges whose servers are usually more concentrated, as said earlier—having the servers spread out leads to a reduced risk of having a server downtime and means that they’re (decentralized exchange) more or less immune to attacks. This is because taking out one of the servers makes little to no difference for the servers' entire network. On the other hand, a lot of harm can be done to a centralized exchange when you get into a server.

Also, making a trade at a decentralized exchange means the exchange never touches your assets.  So, if a hacker manages to hack the exchange, the hacker would have no access to your assets due to the above. However, when you trade at a centralized exchange, assets are always held until they're withdrawn to your private wallet. Therefore, it is possible to hack a centralized exchange also, and your assets (funds held during the exchange) can be stolen at such exchange.

As the Bancor network is a decentralized exchange, it is proper to award it an A+ security score irrespective of its Mozilla Observatory test score.

On the 31st of July 2020, the Bancor Network successfully launched an upgraded version (v2) of its decentralized exchange. The upgrade comes with the following features:

Twenty times liquidity amplification: this is done by improving the bonding curve to bring about less slippage than usual with the same amount of pool liquidity.

100% Exposure to a single asset (single-token exposure): this is by splitting the single pool token representing the collective values of a particular exchange pair and thereby preventing users from being exposed to two assets at the same time.

Temporal loss mitigation: this is where providers of liquidity are prone to losing their money due to the fluctuation of particular assets. The solution comes as a combination of oracle-driven price feeds and incentives.

On a final note, the Bancor Network is a decentralized exchange dominates the cryptocurrency exchange field or market (due to better liquidity). In contrast, the decentralized exchanges are still regarded as a minority in the cryptocurrency exchange market.

About BitForex:

BitForex is an exchange service platform that can be classified as one of the Top 10 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.

BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts,  derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.

More details:

BitForex / Social Trading / CAPP Town

Scan to download for iOS or Android