Home / Ethereum / Ethereum Dapp Bancor is expanding to EOS for fast and free transactions

Ethereum Dapp Bancor is expanding to EOS for fast and free transactions



Bancor, one of the most popular and valuable decentralized applications on ethereum, is expanding to the EOS blockchain.

According to a company announcement, the "decentralized liquidity network", which allows users to exchange a series of ethereum tokens based on a trading book without depositing funds in an exchange or corresponding transactions would bring this capacity to EOS.

The new cross-chain product, called BancorX, will allow users to exchange between certain EOS-based tokens – which have yet to be specified – as well as between the EOS- and ethereum tokens.

"Bancor is turning into a cross-chain liquidity protocol," the company explained in the release, adding that it published the code for open-source smart contracts on EOS, allowing users to experiment with protocol in a test environment.

No deadline has been set for the launch of BancorX on EOS's live blockchain.

Explaining the decision to launch on EOS, Bancor's announcement cited the transaction rates of the blockchain network, which are faster than those of ethereum, and the lack of taxes – in contrast to the "gas" commissions ", often costly, users of ethereum must pay to call smart contracts.

As a corollary to the lack of taxes, Bancor said that EOS eliminates the "risk of front-running", as transactions are not a priority in exchange for paying higher commissions.

It is worth noting, however, that while EOS transactions are free of cost for users, the implementation of dapps on the blockchain can be costly for developers, unless they choose to transfer costs to users .

An emergency brake?

A feature of EOS that Bancor's announcement did not mention, but which may be relevant to Bancor's offer, is the ability of a majority of the network block makers – who maintain the EOS blockchain in a similar way to the miners of ethereum – effectively reverse transactions.

While block producers can not cancel completed transactions, they can forcibly transfer tokens from one address to another.

Nore Hindman, Bancor's communications director, denied that this EOS function influenced Bancor's decision to expand on that network, reiterating instead the benefits mentioned in the company's announcement: faster transactions, zero taxes and resistance to front-running.

Freezing and the reversal of EOS transactions proved to be controversial, as many in the cryptocurrency community see the inability to do these things as a blockchains appeal core. In fact, many commentators have reacted negatively to the decision of EOS block makers to block transactions from a number of compromised accounts immediately after the launch of the network. Subsequently, the arbitration body of the network ordered block producers to freeze even more accounts.

Bancor, in a similar vein, is known for his decision to write about the possibility of blocking and reversing certain transactions in his smart ethereum contract, as a cryptocurrency developer Udi Wertheimer detailed in a blog post last year

Eyal Hertzog, cofounder and product architect of Bancor, defended these design choices, citing the infamous DAO trick, which saw millions of funds subtracted from clever contracts with no way to stop theft. The accident eventually led the ethereum community to shell out the chain to reverse the damage.

Bancor used these capabilities as a result of a security breach in July, when it blocked the transfer of 2.5 million BNT tokens, worth about $ 10 million at the time. The company has not been able to prevent the theft of about $ 12.5 million aether, however.

EOS, in contrast to ethereum, offers the possibility of reporting alleged thefts of arbitration and of blocking producers by consent – if accepted controversial methods.

Bancor's protocol is already used in the EOS network to govern the RAM market, a necessary resource for creating EOS accounts. Bancor also operates a block producer, LiquidEOS.

Image of the bank through Shutterstock


The leader in the blockchain news, CoinDesk is a point of reference that is committed to the highest journalistic standards and adheres to a strict set of editorial policies. CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in criptovalute and blockchain startups.


Source link