The Bancor Protocol has been live for over a year now. Having raised $153 million in one of the most successful ICOs of all time, Bancor continues to provide liquidity for over 120 different ERC-20 tokens — and as of October, EOS tokens. Unlike your typical exchange, Bancor utilizes its own unique algorithm that enables users to buy and sell tokens from a smart contract at rates that are constantly recalculated based on demand. Automated transactions are made possible with token reserves stored in the smart contracts, and the Bancor Formula that uses their real-time supply and the requested transaction volume to appropriately price any token conversion. When tokens are bought, the reserve supply decreases and in turn raises the price of the token. The opposite is true for selling.



As the first and largest liquidity network in the world, Bancor’s vision is to provide liquidity for tokens across multiple blockchains and to enable user-generated cryptocurrencies to thrive. By automating market books through smart contract conversions, the issue of illiquidity in the crypto-space is becoming a problem of the past. Any token project can create a Relay Token on the Bancor Network to automate fair and efficient token conversions for users.

Richurd is an employee of BlockchainIL (https://www.blockchainil.com/) which provides consulting services to the Bancor Foundation. Follow BlockchainIL on Twitter @BlockchainIL