EOS Opens A Bancor Bridge To Ethereum
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Insularity is the biggest barrier to crypto adoption. For newer blockchain projects, those faster and cheaper transactions tend to be outweighed by the network costs; it’s impossible to jump-start an ecosystem without users. Projects like EOS, Tron, and Tezos have huge moats which prevent most users from trying, much less using, their new dApps.
That might be changing for EOS, after the launch of a new decentralized exchange to bridge the moat to the Ethereum ecosystem. The Bancor Network, an Ethereum-based protocol for decentralized exchanges, has teamed up with an EOS block producer to create a new DEX, allowing seamless trades between the two multi-billion-dollar dApp platforms.
In an announcement posted to Medium, LiquidEOS wrote:
Bancor’s unique liquidity network allows users to convert tokens frictionlessly without the need to find a counterparty for trade. Unlike traditional exchanges, which rely on order books to match buyers and sellers, Bancor uses transparent algorithms and automated deposits to manage liquidity and enable continuous conversion of one asset into another. Since its historic $153 million token sale in 2017, Bancor has processed over $1.5 billion in token conversions on Ethereum and regularly ranks among the largest volume dapps on the Ethereum blockchain.
The partnership is the latest effort to cross the moats separating the fifth-largest blockchain from the rest of the crypto economy. In addition to the usual advantages of smart contract-based exchanges, BancorX will also leverage the advantages of the EOS network, such as one-second transactions and zero fees.
LiquidEOS isn’t the only leading figure in favor of the new exchange. “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,” said Block.One CTO Dan Larimer, in a statement published when BancorX was first announced.
At present, 110 Ethereum and EOS-based tokens will be available to trade through the cross-chain protocol, including popular EOS tokens like Everipedia (IQ) and Meet.One (MEET), and the smart contract can easily be expanded to other tokens. Per the announcement: “Anyone can integrate their token with Bancor’s liquidity network by staking an amount of those tokens in a smart contract which they own and manage.”
BancorX joins a growing number of rope bridges between the two leading smart contract platforms, many still under construction. Crypto Briefing has already reported on EOSFinex, a proposed decentralized exchange to allow trustless trades in much the same manner as BancorX.
The Author is invested in Ethereum, which is mentioned in this article.