Understanding Bancor

Scott Morris
Jun 11, 2017 · 11 min read

Smart Tokens — The Basics


An Illustrated Anatomy of a Smart Token

1. Community / Market Purpose


2. Issuing Authority


3. Capitalization


4. The Reserve


5. Smart Token Supply


6. Constant Reserve Ratio (CRR)



Flow of Value & Pricing Basics

Purchasing Smart Token via Reserve Token

Liquidating Smart Token for Reserve Token

Smart Token Use Cases

Token Shares

Similar to: Most ICOs and Sale of tokens to date.

Token Currencies

Similar to: DogeCoin; Time Credits; SamenDoen; WIR

Token Changers

Similar to: Shapeshift.io; 0xproject; Internet of Coins

Token Baskets

Similar to: TaaS; Prism

Network Tokens

Similar to: Ether; Veritaseum

Summary Advantages of Smart Tokens

Summary Advantages of the Bancor Ecosystem

Conclusion

Scott Morris

Written by

Shortening the distance between action and impact. Founder @Ithacash & MainSt.Market | US Fellow @Qoin

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