The Bancor Protocol has often been described as one of the most advanced algorithms in the blockchain space. The innovative technology connects smart contracts to form “liquidity networks” which allow connected tokens to be automatically convertible with each other at algorithmically calculated prices. Conversions are enabled by smart contract-managed reserves which hold transparent balances of an integrated token and a universal ‘connector’ token.
From EOS and FOMO3D to various Ethereum and EOS-based wallets and browsers, numerous third-party developers have utilized the open-source protocol to build powerful infrastructure layers into their dApps, blockchains and token creation tools. By integrating the protocol, developers give their users the ability create and convert user-generated tokens directly from within the project’s website or app.
Bancor Github: https://github.com/bancorprotocol
Bancor Developer Tools: https://support.bancor.network/hc/en-us/sections/360001492551-Developer-Tools
Below are just a few of examples of blockchain projects that have utilized the protocol:
One of the most notable blockchain projects currently using the Bancor Protocol is EOS. The EOS mainnet launched in June 2018 and uses RAM to store the account information (keys, balances, contract state) required for development and production of decentralized applications (dApps).
Block.One CTO and EOS Co-founder Dan Larimer announced the EOS.IO system contract will be using the Bancor algorithm to provide liquidity in the RAM market.
“We see the Bancor Protocol as an elegant solution for liquidity that benefits all token holders by offering a completely new paradigm for value exchange based on efficient automated market makers, powered by auditable smart contracts. This is the future of fair, low cost and predictable value exchange, and we’re excited to bring these benefits to the EOS.IO community.” — Dan Larimer, Block.One CTO
CanYa is an open ecosystem of decentralized applications for peer-to-peer services. One of CanYa’s key features is a blockchain-based marketplace where people can buy and sell digital services securely.
The CANWork platform went live in July 2018 and allows users to pay freelancers in ETH and other Bancor-supported ERC20 tokens. CanYa’s payment widget uses the Bancor Protocol to facilitate token conversions and provide instant liquidity to its users.
Peg Network is a new protocol for creating customized asset-pegged tokens. Through Peg Network and its token PEG, anyone can create an ERC-20 token pegged to a currency, commodity or underlying asset of their choice. Asset-pegged tokens, once issued, have instant liquidity and can be converted into any ERC20 token via the Bancor Protocol.
Peg Network’s post announcing the launch shared more details on the Bancor-powered features:
Liquidity is provided by smart contract-managed reserves which hold a balance of a listed token and a universal ‘connector’ token. The connector token used by the PegDex is PEG:USD, a USD-pegged stablecoin. When a user wishes to exchange TokenA for PEG:USD, a smart contract manages the trade by depositing TokenA into the reserve and issuing PEG:USD from the reserve to the user.
FOMO3D is a decentralized blockchain gambling platform and is one of the most popular games on the Ethereum network. The controversial dApp describes itself as “a psychological social experiment in greed”, appearing to be a parody of an ‘ICO exit scam’ and it even uses the eyebrow-raising domain name of exitscam.me.
However the lottery-style game uses the Bancor Protocol to handle everything; from the money coming in and out of the game, the timer, distribution of winning, and passive income to key holders. Which ironically means that there is no one with the power to run off with your money, despite the game’s name, as everything runs on automated, open-source smart contracts.
For those who are unfamiliar with cosplay, it’s a hugely popular hobby where participants wear self-made costumes and accessories to represent specific characters, often from games, cartoons, films or popular culture.
Cure WorldCosplay is the world’s largest cosplay platform, with a community of more than 720k people and 6.5m photos, and it’s now ventured into blockchain with a platform which allows users to create their own coins and receive tips for their work, instead of conventional online payment methods.
The platform uses the Bancor Protocol so cosplayers can create their own custom Cosplay Token (COT) currency. This means users can easily monetize themselves by creating their own personalised Cosplay Player Coins to be used within their own ecosystem.
What do you think of these projects? Let us know in the comments below!