Liquidity plays an integral role in the world of cryptocurrency. Addressing any concerns in this regard has proven to be a major challenge. BancorX is Bancor’s liquidity network, and the project is currently live on the EOS testnet.
The BancorX Concept
Offering more liquidity to cryptocurrencies and tokens is always a good sign. Choosing the EOS main net for the live version of this product is a remarkable decision, although it appears to make sense to the BancorX team at this stage. One of the main aspects of BancorX is how this is a cross-chain solution, which ensures liquidity throughout the entire emerging token economy.
How Does it Work?
The main objective of BancorX is to offer viable solutions for every single project in the token economy. BancorX’s tokens will have an embedded converter, which turns them into Smart Tokens. These Smart Tokens equip standard tokens and can always be bought and sold directly through their respective smart contracts. It is expected over 100 tokens will launch on Bancor in the near future, which means there will be plenty of opportunities to explore.
Considering how BancorX focuses so much on cross-chain solutions, the future of this project will look rather interesting. This is also one of the aspects which sets Bancor apart as a whole, as it aims to facilitate collaboration within the token economy by embracing centralization to its full potential. Being able to convert any token on the network to any other supported token is a great way of beefing up the ecosystem.
Another interesting aspect about BancorX is how the project focuses on security first and foremost. With an active bug bounty program, the project will effectively pay security researchers who disclose vulnerabilities prior to the project’s main net launch. Albeit there is no such thing as a foolproof system whatsoever, ensuring issues are addressed during the final testing phase is a positive sign.
The Road Ahead
At this time, it is a bit unclear how long BancorX will remain on the EOS testnet. Ironing out any bugs and ensuring the project is as usable and secure as possible always need to be the main priorities first and foremost. The project will see a fair few initial tokens launching alongside this liquidity network, which shows there are high expectations regarding Bancor and BancorX.
Image(s): Shutterstock.com