The Protocol Foundation company is an enterprise that was founded in 2017 to popularize and promote such a product as Bancor (BNT) to the masses of the cyber world. Bancor (BNT) is a special protocol through which smart tokens are implemented in the system. These smart tokens are beneficial for working within the network in algorithmic pricing. This work concept allows you to create a “long tail” for the currencies used, taking into account the democratization of value.
Basic information about Bancor (BNT)
What is Bancor (BNT)? The Bancor protocol (BNT) is a kind of mechanism built into the system, through which the cost and liquidity of the coins are determined. In turn, their work is based on the Blockchain that supports the smart contracts. Bancor (BNT) is included in the reserve of these smart tokens, which allows the user to purchase or liquidate this smart token by exchanging reserved coins at a certain cost at any time. This cost is dynamic and regularly recalculated using special formulas – this allows you to maintain a balance between sales and purchases in the system.
We can say that the Bancor (BNT) cryptocurrency is a special protocol that uses the conversion of cryptocurrency based on smart contracts without the need for an exchange by the second participant in the transaction. This principle is achieved through the use of reserved coin, providing liquidity of operations.
According to the developers of the Bancor (BNT) altcoin, since 2011, when Bitcoin was launched, they were impressed by the work of the Blockchain and its organic interaction with the Internet. Over the years, the company’s specialists were able to develop and implement such a product that will expand the functionality of the cryptocurrency and open new horizons for users. The developers gained experience in managing their currencies, which helped them find a solution to the main liquidity problem.
The Bancor (BNT) protocol was the result of their work. It allows solving the main problems of cryptoeconomy – the use of Bancor (BNT) means working with modern and high-tech solutions called “double coincidence of desires”, which provides the opportunity to exchange transactions with cryptocurrencies when using smart contracts. The latter provides the creation of smart-markers that hold reserved tokens, which can be represented by a variety of currencies – cryptocurrencies, electronic money, and fiat assets. Thanks to these backup tokens and a special system functioning through algorithmic calculation of liquidity, even in the absence of a centralized management system, the user opens new prospects for working with cryptocurrency.
Bancor coins (BNT) and their platform carry out their work through the use of several smart contracts. The main ones are SmartToken and BancorChanger. The latter is responsible for implementing the standard for changing coins and converting smart tokens into other currencies, and the first is a co-compatible with ERC-20.
Advantages of the Bancor (BNT)
Given all the features of Bancor (BNT), it must be said that although this project is quite young and has not yet passed all the testing stages, it is already able to offer you a lot of advantages:
- Unlimited liquidity – smart tokens are available for purchase and liquidation through the use of smart contracts for everyone;
- Availability of backward compatibility – functioning of the Bancor-protocol ensures the liquidity and asynchronous determination of the value of any token that meets the ERC-20 standards;
- No spread – the cost of coins is calculated by smart tokens, which guarantees an equal value of the currency when performing any operations;
- No risks – you don’t need to convert currencies on exchanges outside the platform;
- Reduced volatility – the characteristics and properties of smart tokens provide a reduction of volatility price;
- Price slippage – this indicator is calculated taking into account the size of the transaction and is included in the current price.
The main disadvantages of Bancor (BNT) at the moment consist in the project being in the test version, which does not exclude the detection of bugs and the need for constant updates. However, the wide functionality and large-scale idea of the developers are impressive and leave no room for thoughts about possible disadvantages of this product.
Bancor (BNT) token
Now let’s talk directly about the monetary unit of the Bancor platform. For each Bancor (BNT) token, one reserve will be assigned to the network in the equivalent of ETH. Other smart tokens can be used by Bancor in the form of reserves, which will allow you to join the network.
Smart tokens, on which the work of the platform is based, function with the help of smart contracts that are placed in the Ethereum network. At the same time, they are compatible with the EIP228 and ERC20 standards. The evolution of the protocol takes place until all the additional standards are achieved to ensure flexibility, cross-blockchain compatibility and enhance the security of smart tokens.
What is 1 Bancor (BNT) worth? With a Bancor (BNT) capitalization of more than 200 million US dollars, the Bancor (BNT) price for February 12, 2018 is 5,22 US dollars per coin. In Bitcoin-equivalent, this figure is about 0.00059352 BTC, and for the Etherium – 0.00602244 ETH.
Sources of the Bancor platform (BNT)
If you are interested in the question of how to get Bancor (BNT), then immediately note that to use the platform resources you need registration. You can go through the procedure on the official website of Bancor (BNT) https://www.bancor.network.
Here you can also track all changes and news of the project, the output of related products. To use cryptocurrency, Bancor (BNT) wallet, and other features, you need to go to https://app.demo.bancor.network/communities/59419fa1d490eb0001c56a3e and register your account. Do not forget to store your login and password in an inaccessible place, as for the address of Bancor (BNT). What is Bancor (BNT) address? This character set can be compared with the number of your bank account, which indicates where to enroll funds.
Features of using Bancor (BNT) tokens
To receive income, it’s not enough just to buy Bancor (BNT) – this will not justify your investment. To make the investment justified, you need to know how you can use smart tokens to work for you:
- Token-changers – this kind of smart token allows you to convert all tokens that meet the ERC20 standard and are related to the storage. If the value of currencies deviates from the indicators of external sources, the balance is restored through the procedure for synchronizing the indicators;
- The tokens bucket or ETFS – this type of token also meets the ERC20 standards and works thanks to just one smart token with the reserve of several coins. The economic balance is also maintained through synchronization with external market indicators;
- Protocol or project tokens – this type of token is used through the application of the concept of crowd-funding. Platform users can receive liquid tokens that have a market value;
- Сommunity currencies – the work of smart tokens allows each platform user to issue their own currency and launch the ICO, while receiving a guarantee of liquidity of their product from Bancor.
Prospects for Bancor (BNT)
Speaking about the prospects of Bancor (BNT), we can immediately note that the project is very interesting and looking to the future. The idea of smart tokens work instead of standard cryptocurrency circulation will allow the cyber economy to reach a new level of development since such a concept excludes the need for unnecessary intermediate operations until the desired result is obtained. The forecast for Bancor (BNT) promises a great future for the project, provided that its developers continue to work at the same pace and with even greater initiative.