Bancor, the third largest and most valuable decentralized application on the Ethereum network, has announced its intention to expand to the EOS blockchain.
According to the company's announcement, the new project, called BancorX, will allow users to swap between still being EOS token and between EOS and Ethereum tokens.
Read: Beginners Guide to Bancor: Token Conversion Network Without Counterparts
The announcement stated that the "decentralized liquidity network" that allows users to trade a set of Ethereum-based tokens without depositing funds in an exchange or corresponding trades in an order portfolio will bring this capacity to EOS.
"Bancor is turning into a cross -collection of liquidity protocol", the company explained. He went on to say that he published the code for smart open source contracts on EOS, allowing users to experiment with the testnet protocol. However, no deadline has been set for the launch of BancorX on the EOS live blockchain.
Faster and cheaper
By stating the reason for the launch on EOS, Bancor said that the speed of the blockchain network transaction is faster than that of Ethereum. Even the lack of taxes is interesting, compared to the huge gas tariffs that Ethereum users have to pay to call smart contracts.
Prior to the launch of the network, a higher commission was charged to Ethereum users to make transactions. However, as a result of the free transaction system, Bancor said that EOS is free from "front-running risk" because transactions are not a priority in exchange for high commission payments.
Read: Beginner & # 39; s Guide to EOS
EOS transactions may be free for users, the implementation of the blocks on the block is an expensive business , unless developers choose to transfer costs to users.
In addition, a relevant feature of EOS that Bancor & # 39; s announcement did not include in its benefits the ability of a majority of the producers of network blocks, which maintain the EOS blockchain in a similar way to miners of Ethereum, to reverse transactions successfully.
Powerful Block Producers
Delete completed transactions, can forcibly transfer tokens from one address to another.
In response to this, Bancor's communications director, Nate Hindman, denied that this feature of EOS influence Bancor's decision to expand on that network. Instead, he reaffirmed the benefits mentioned in the company's announcement: faster transactions, zero taxes and front-running resistance.
The reversal of EOS transactions has proved a controversy, as many in the cryptocurrency community see the impossibility of doing these things as the main attraction of blockchains. This explains why manufacturers of EOS blocks received adverse reactions from online commentators on the network's decision to block compromised account transactions immediately after the blockchain was launched. Subsequently, the arbitration body of the network ordered block producers to freeze even more accounts.
Similarly, Bancor is well known for his decision to write the possibility to block and reverse certain transactions in his smart etereum contract, as revealed by Udi Wertheimer developer of cryptocurrencies a detailed blog post last year
Eyal Hertzog, cofounder of Bancor and product architect, defended these strategies by citing the infamous DAO trick, in which millions of money were stolen without any means to stop the theft. The accident eventually pushes the Ethereum community to force the chain to reverse the damage.
Bancor took advantage of these skills when he blocked the transfer of the sum of 2.5 million BNT tokens, worth about $ 10 million at the time, after a security breach in July. Unfortunately, he was not able to prevent the theft of $ 12.5 million in ether.
In contrast to Ethereum, EOS has a way to reverse the damage through controversial but accepted methods. Once the theft is reported to the arbitrator, block makers can reverse the damage.
Currently, the Bancor protocol is already in use on the EOS network to govern the RAM market, a necessary resource for creating EOS accounts.