Coveted Bancor Ethereum dApp To Open Up BancorX On EOS Blockchain For Fast And Free Token Trading
Many users appreciate the services Bancor offers, since it provides access to decentralized functions. However, to give their users a little more opportunity, they have managed to expand their project to the EOS blockchain, which they called a “decentralized liquidity network.”
Bancor appreciates the ability the EOS blockchain has to let a wide range of tokens to be used. There is no deposit requirement to do so, and the new product between these two entities will be called BancorX. This new cross-chain product will let users have the option of trading between a specific group of EOS-based tokens, though the full list of compatible tokens has not been released. The company released a statement, saying, “Bancor is now evolving into a cross-chain liquidity protocol,” while noting that there is an option to use open-source smart contracts.
When discussing Bancor’s move to EOS, they noted that EOS has a transaction speed that is appealing to them and is exponentially faster than Ethereum’s.
Furthermore, there are no fees associated with the transactions, which is something that users typically have to pay for any smart contract transaction. However, as a consequence, the transactions are not prioritized, which actually eliminates the “front-running risk” of EOS. Basically, this compromise is what happens when a dApp needs to offset the cost for developers on the EOS platform.
Bancor did not announce with this unveiling that there is one other factor that changes how users interact with the blockchain. Right now, it is possible to establish a supermajority with the block producers of the network, which would give them the power to reverse transactions on the blockchain. Blockchain technology makes it impossible to completely eliminate the transaction on the blockchain, but they would have the power to force tokens to move between accounts.
The director of communications at Bancor, Nate Hindman, has refuted that this feature had anything to do with their decision to collaborate. Instead, he turned the attention to the options that the company has continually circled back to – fast transactions with no fees and no front-running. Even though the new project has been announced, there has been no timeline established for when BancorX is meant to be launched.
EOS’s ability to freeze and/or reverse transactions has attracted negative attention, especially considering that most of the community see the lack of these options as the reason for blockchain. The community has pushed to eliminate these options, even when the necessity has been justified. However, the arbitration of the network has pushed back, leading to the freezing of other accounts.
Somehow, despite the contention for this kind of feature, Bancor has decided to write it into their Ethereum smart contracts. The co-founder for Bancor, Eyal Hertzog, defended this decision, discussing the DAO hack that led to millions of dollars in losses with no way to stop it. The only way that the Ethereum community was able to fix anything was to hard-fork the change, reversing the damage that their customers sustained.
Bancor feels that keeping the ability to freeze in their smart contracts is essential for that reason. In fact, this type of algorithm helped them to stop the transfer of 2.5 million BNT tokens in July. Unfortunately, it did not seem to make a difference without the EOS blockchain, considering that the company lost $12.5 million in ether.
EOS lets companies send these potential threats to block producers in arbitration, even though there is a lot of controversy about their methods. This is not a service that Ethereum presently provides.