BancorX enables automated conversions between Ethereum-based and EOS-based assets without users having to deposit funds on an exchange and without the need for order-matching between buyers and sellers. Anyone can integrate an Ethereum or EOS token with BancorX by staking an amount of those tokens in a smart contract which they own and manage.

Behind the scenes, BancorX is based on the ability to move BNT — the Bancor Network Token — between blockchains. BNT is designed to function concurrently on both EOS and Ethereum in order to enable cross-chain conversions.

A key component of this cross-chain functionality is the unique ability of BNT, the world’s first Smart Token, to automatically issue and destroy itself simultaneously on multiple blockchains. Any BNT that moves between chains is removed from circulation on the originating chain and sent to an address on the destination chain. This ensures that throughout the cross-chain conversion process, the circulating supply of BNT remains unchanged.

When a user converts an Ethereum-based token into an EOS-based token via BancorX, the following occurs:

Dimension 1:

The Ethereum token is converted into BNT.

The BNT is sent to the BancorX smart contract on Ethereum, which also receives account information for the destination chain (EOS).

Once the BNT and destination account are sent to the BancorX contract, the BNT is removed from circulation on Ethereum.

Dimension 2:

Oracles watch the BancorX contract on Ethereum and report the BNT amount and destination wallet address to the BancorX contract on EOS.

Dimension 3:

The BancorX contract on EOS then issues BNT on the EOS blockchain.

This BNT can be converted into EOS or the desired EOS-based token through Relays on the Bancor Network.

Conversions from EOS-based tokens into Ethereum-based tokens similarly occur via BNT, but in the opposite direction:

Dimension 1:

The EOS token is converted into BNT.

The BancorX smart contract on EOS removes the BNT from circulation and receives account information for the destination chain (Ethereum).

Dimension 2:

Oracles watch the BancorX contract on EOS and report the BNT amount and destination wallet address to the BancorX contract on Ethereum.

Dimension 3: