What you'll learn 👉
Introduction
The Bancor Protocol is an initiative of the B protocol Foundation, a non-profit organisation based in Zug, Switzerland.
The Bancor protocol allows anyone to create a new type of cryptocurrency called a smart coin that can hold and trade other cryptocurrencies.
This allows the intelligent coin contract to act as a separate market maker by automatically finding its price and providing liquidity for other currencies, thereby eliminating the need for another party.
Every smart coin is always liquid at a particular point in time.
Bancor Coin – The Cryptocurrency
Bancor Coin (BNT) is the Genesis smart coin that will be used to establish the BANCOR network and function as a native currency.
Smartcoin provides a simple and powerful building block for implementing new types of monetary models, applications, value networks such as local currencies, project coins, decentralised index funds and more.
The coin changers are intelligent coins that can be used to exchange between other standard ERC20 currencies held in reserve.
If the calculated stock market prices deviate from the market prices in foreign exchange, arbitrageurs are encouraged to restore economic equilibrium and reconcile prices with the outside world.
This works with ETFS. ETFS are coin baskets, i. e. coin baskets that hold several standard ERC20 coins in their reserve so that a portfolio of coins is held with a single smart coin.
The crowdfunding trend has proliferated.
The Smart Coins can be used for crypto-crowdfunding initiatives, where participants receive coins that adapt flexibly and automatically to the market price.
There are many examples of user-generated currencies, such as complementary currencies, loyalty points, P2P barter, and most recently blockchain protocol coins.
All of these applications can benefit from liquidity and asynchronous price coverage using the Bancor Coin protocol.
Anyone can create a coin and launch a crowdsale.
The Bancor Bot allows everyone to create their smart coin and initiates multiple types of crowdsales without technical knowledge by simply answering a few questions.
Supported bots can be found on Facebook Messenger, the message Messenger, WeChat Messenger and the status. IM Messenger.
Bancor Coin – The Company
The B protocol Foundation was established in 2017 to promote the development and adoption of the Bancor Protocol, a standard for the creation of intrinsically tradable coins.
These intelligent coins benefit from the network effect and algorithmic prices so that the coin long tail generated by users creates added value and democratisation.
The team behind Bancor is made up of serial consumer Internet technology entrepreneurs with decades of experience in the cooperation and areas of venture capital.
Some of Bancor’s former companies were contact networks, one of the first social networking sites in 1998 and an inspiration for Plaxo and later Facebook, MetaCafe, the most extensive user-generated video sharing website before YouTube with over 50 million active users, Mytopia, the first developer platform of multiplayer games for PDAs and smartphones, Particle Code, a cross-platform development environment for mobile and web applications, and Venture funds with which Bancor has worked were, for example, the following Accel, Benchmark, Highland Capital, Trinity Ventures, SK Telecom Ventures and many more.
Conclusion
The Bancor protocol is the first technological solution to the classic economic problem known as a double-coincidence-of-wants problem in the field of asset exchange.
In bartering, the problem was solved by money, so that people can act asynchronously over time and space.
In this case, money is the value carrier for goods. To increase the value of assets using money as a value carrier, the existing stock exchange model relies on the work of market makers who provide liquidity and create market depth.
The Bancor protocol proposes a new solution that eliminates the barrier-to liquidity problem, the double-coincidence-of-wants problem, by using an asynchronous pricing model enabled by asset-holding smart-coin.
You can’t buy it directly for fiat on any exchange. You can choose the best crypto exchange for your region and but BTC there, then trade it for BNT on exchanges. Learn here how you can instantly convert altcoins to bitcoin and vice versa.
Our recommendation is always check if Coinbase is available for your country and buy there – as it is by far the safest and best regulated bitcoin exchange. Coinbase is legit and safe cryptocurrency exchange.
If your country is not available on Coinbase – check for exchanges that are good Coinbase alternatives (such as Cexio and Indacoin – see here Cex.io review and Indacoin review) and buy BTC on one of those exchanges. You can always exchange your coins on Changelly (see if Changelly is legit), instantly and directly to BTC.
Best and safest option to store your coins is to download an official coin wallet and store it on a hardware wallet – our recommendation is just go and buy Ledger Nano S, it is the safest option.You can read our review of Ledger Nano S or check out other best hardware wallets here.
