Bancor Protocol is a new tool that will allow you to create smart tokens and trade them on their decentralized exchange using contracts based on Ethereum. Therefore, it is often referred to as the “WordPress of cryptocurrencies”.
What I really like about this project is that it solves an actual problem. Unlike dozens of other tokens (shit coins) that pop-up every single week, this one will actually make the day to day life of many people easier and more enjoyable.
By the way, before we dive any deeper, remember that Bancor Protocol’s fundraiser will begin on June 12th, 14:00 GMT. The conversion rate is of 100 BNT (Bancor Tokens) for every 1 ETH. I strongly advise you not to miss it out!
What problem does it solve?
Bancor Protocol provides the first solution for the coincidence of wants problem in the digital asset world. In case you have never heard this word before, it is a term used in economics stating that an exchange of goods between two individuals will only take place if the supplier of good “A” wants good “B”, and the supplier of good “B” wants good “A”.
The main problem small (new) cryptocurrencies have is their low trade volume. This means that if somebody is willing to buy the cryptocurrency (A), there may not always be somebody who is willing to sell (B). This is the main reason why until now, cryptocurrencies that didn’t attract huge audiences from day 1, would quickly die off.
Bancor has solved this problem by developing a smart contract that ensures a constant liquidity for the so-called “smart tokens” that can be built using the platform.
Why should you care?
The Bancor Protocol team is working extremely hard in making their vision a reality. They have already presented their project at LAUNCH in San Francisco, Coinfest in Amsterdam, EDCON in Paris and many more events.
Although cryptocurrencies have seen a huge spike in interest in the past couple months, especially Ether, they are still not viable for being used by the general public (“normies”). I mean, try to explain to your mom why she should buy Ether from an exchange, and store it in an encrypted cold wallet. Bancor is about to change this. Just like Twitter popularized microblogging and YouTube made video sharing mainstream, Bancor will encourage the creation and mass adoption of new cryptocurrencies.
Why do we need more coins?
At the time I am writing this post there are 714 cryptocurrencies out there. And most of them are either scams or offer no real advantage over Bitcoin, Ether, Monero or Dash. So why would it be a good idea to offer a tool that enables non-tech people to fill this pool with “useless” coins even more?
Because in order to achieve a truly decentralized world, we need to slowly make local communities to be self-sustaining and nearly independent. And the first step to achieving this is to give people the power to create their own currencies.
— Bancor (@BancorNetwork) May 22, 2017
The “Bancor” was a supranational currency conceptualized by John Maynard Keynes and E.F. Schumacher. However, it remained just that, an idea in the mind of two economy geniuses.
Therefore, I think that the BPOTOCOL FOUNDATION made an excellent decision with choosing Bancor to be the name of their project.
And that’s it for today!
Hope this helped you to understand what Bancor Protocol is. If you want to learn more about this project make sure to join the Bancor slack group. There’s already over 2.000 of us there!
Please share your thoughts in the comment section below.
And as always,