The Bancor (BNT) Liquidity Network is expanding beyond Ethereum for the first time with BancorX.
A Bancor Protocol variant called BancorX; or Bancor on EOS, can convert EOS (EOS) into Ethereum (ETH). Thus BancorX can convert ER20, ERC223, and other Ethereum Request for Comment (ERC) tokens into EOS.
Hence BancorX is a liquidity network that supports both EOS and Ethereum. For instance, BancorX could convert Bancor Network member tokens like Storm (STORM) and Gnosis (GNO) into EOS. Moreover, BancorX could convert EOS-backed tokens like Workcoin and EOS Lynx into Ethereum or ERC tokens.
Importantly, BancorX is now live on the EOS Mainnet. On the Mainnt, Bancor acts as an automated cross-chain conversion protocol. To explain, cross-chain conversion protocols convert cryptocurrencies based on different blockchains. For instance, BancorX converts EOS into ETH and back.
Bancor is encouraging EOS developers to adopt its open-source contracts and embeddable user interface. Additionally, the user interface processes EOS-based conversions in the popular Scatter Wallet for EOS.
Bancor building Liquidity Network on EOS with BancorX
Purported advantages to Bancor on EOS include: one second transactions, no-transaction fees, and no Ethereum gas-fees. If it works, Bancor on EOS could eliminate 10 second transaction times, gas fees, and transaction fees of up to $50 all of which are common on Ethereum.
Bancor on EOS is already working with over a dozen Cryptocurrencies. Altcoins utilizing BancorX and Bancor on EOS include:
- Horus Pay (HORUS)
- EOS Poker (POKER)
- HiveVibes (HVT)
- OracleChain (OCT)
- Chance (CET)
- Bancor (BNT)
- EOS (EOS)
- eosBack (BLACK)
- KARMA (KARMA)
Will BancorX add Value to Bancor and EOS?
EOS on Bancor is not helping the Bancor Token in the markets. Coin Market Cap reports Bancor’s Coin Price fell by 15.57% on 20 November 2018.
For the record, CoinMarketCap gave Bancor (BNT) a Coin Price of 80¢; a Market Capitalization of $45.487 million, and a 24-Hour Market Volume of $2.297 million on 21 November 2018. There was a Circulating Supply of 56.89 million BNT and a Total Supply of 77.558 million on the same day.
Meanwhile EOS (EOS) was 1.61% on the same day. EOS had a Market Capitalization of $3.382 billion, a Coin Price of $3.73, and a 24-Hour Market Volume of $906.245 million on 21 November 2018. EOS had a Circulating Supply of 906.245 million EOS and a Total Supply of 1.006 billion tokens on the same day.
CoinMarketCap estimated that EOS was the sixth most popular cryptocurrency on 21 November 2018. However, Bancor (BNT) was the 83rd most popular cryptocurrency on the same day.
Why Bancor and EOS need Bitcoin and Ripple
To greatly increase the value of BNT and EOS, Bancor will have to add Bitcoin (BTC), DASH (DASH), and Ripple (XRP) to its liquidity networks. Bancor needs those cryptocurrencies because they are being used in the real world.
For example, Ripple is building remittance corridors to 40 countries and powering banking apps. In addition, DASH is being accepted by merchants in Venezuela and other countries, Business Insider claims. Obviously, Bitcoin (BTC) is the only cryptocurrency that major websites such as Microsoft (NYSE: MSFT) will accept.
Hence, Bancor and EOS need to offer conversion apps and a liquidity network for Bitcoin and Ripple. Offering Bitcoin conversion is probably the only way to take Bancor and EOS mainstream in the present environment.