BancorX is the first ever dapp working across blockchains and it has been announced today that it officially launched on the EOS Mainnet.
BancorX is a great step forward as it permits automated conversions between Ethereum and EOS-based tokens without users having to deposit funds on an exchange and without the need for order-matching between buyers and sellers. Everything is operated through users wallets and without any third party being involved in the process. Token conversions are processed through Bancor’s Network Token, BNT – which is the first decentralized digital asset that can move between blockchains.
The nature of this achievement is not to be underestimated because until now users could convert ETH or any other Ethereum based tokens to EOS or other EOS based tokens only through centralised exchanges, but with BancorX users will not only be allowed to do just this but also take advantage of everything what EOS platform has to offer.
EOS blockchain permits for one second, fee-less transactions, no front-running risk and much more security than any other blockchain. This is a big improvement to what we have seen so far with smart contract platforms. Ethereum transactions per second exceed 10 seconds and gas fees can go up to $50 when the network is congested. Relying on gas prices means also that transactions that have higher gas price are being processed faster than those with lower price making users wait longer if they are not able to spend more on fees.
How are tokens being converted between EOS and Ethereum blockchains
Eyal Hertzog, Bancor’s Co-founder and Product Architect, revealed details about the system’s architecture: “BancorX is based on the ability to move BNT — Bancor’s Network Token — between blockchains. This cross-chain functionality increases the utility of BNT as an inter-network token, connecting the EOS and Ethereum ecosystems today, and vastly more blockchains in the future.”
The conversions across Ethereum and EOS blockchains are possible thanks to an advanced system of automated smart contracts known as relays so when a user converts ETH into an EOS token via BancorX, it is first converted into BNT, which operates simultaneously on both blockchains. The same happens when the conversions is from EOS-based tokens into Ethereum-based tokens. Throughout the entire process in either direction, the circulating supply of BNT remains unchanged.
The Bprotocol Foundation also announced it will transfer $10 million worth of BNT currently held on Ethereum into a secure account on the EOS blockchain. The funds will be used to encourage EOS development and token liquidity, in addition to serving as a symbol of faith in the security and promise of the EOS blockchain.
BancorX currently has made available over 120 EOS and Ethereum-based tokens, but the good thing about BancorX is that anyone who has staked tokens in a smart contract which they own and manage can also integrate an Ethereum or EOS token with Bancor’s liquidity network. Bancor eliminates the need to pay for listing tokens. This feature is not possible on any other centralised exchange. On the newest EOS based dapp people will have the possibility to exchange popular EOS based tokens like Everipedia (IQ), MEET.ONE (MEET), KARMA, Bet DICE (DICE) and Chaince (CET), HireVibes (HVT), DEOS.
— Bancor (@Bancor) October 28, 2018
Here is an in depth read on how exactly EOS and Ethereal based token cross-chain conversions are being made.
Before launching BancorX, Bancor released its open-source smart contracts on EOS as well as an embeddable user interface that processes EOS-based token conversions on the Test Net using Scatter, the most popular EOS web wallet. These tools has been launched in partnership with Bancor’s block producer team, LiquidEOS.