Bancor to Simplify Processes and Transactions for Cryptocurrency Liquidity

The Bancor protocol is a system that provides users the opportunity to receive and send funds while supporting different cryptocurrencies under the ERC20 standard, using automated price and market stabilization measures and calculations and providing increased liquidity when compared to decentralized exchanges (DEX.)

Whereas decentralized exchanges allow you to create an account and trade immediately with it, there is no support and a fairly unattractive user interface. Bancor provides solutions to these issues, which will undoubtedly draw clients and users. What this platform wants to achieve, and where it sets apart from other methods, is simplicity; to understand further about the Bancor Protocol, The Merkle offers a nice overview.

Bancor and decentralized exchanges: how can the former top the latter?

Let’s start by assessing what decentralized exchanges are. They are platforms that provide a place both to trade digital currencies and to store them. Sure, they are very useful, and the chances are that your first experiences trading Bitcoin or altcoins involved the environment of a decentralized exchange. However, most of them don’t have user-friendly interfaces and designs, leading to some confusion. In addition to that, they have been identified by hackers as recent targets for data thefts and money losses.

That is when Bancor comes in. It provides a more appropriate atmosphere for trading and exchanging digital assets, with a simple and straightforward approach and design, and with the ability to support all ERC20 tokens.

Bancor solves one of the most prominent concerns that come with purchasing or exchanging assets, which is the future liquidity a person may enjoy; After all, being able to swap a recently acquired asset for another in the future with relative ease should be part of the offerings and features of every DEX platform, but reality indicates that it is not.

The versatility of the smart contracts created under the Bancor platform is helping users solve old issues of trading, such as worrying about their ability to swap a recently acquired crypto coin for another asset. You need to remember that the ability of selling or trading a certain token in the exact moment you need or want is a crucial proposition in our current financial landscape.

Reliability and simplicity of liquidity

Bancor represents a highly reliable solution to the liquidity problem of cryptocurrencies and decentralized exchanges by making sure its smart contracts can provide exchange between token types, without the need for market makers to act as middlemen in any way.

The beauty of Bancor, and the reason why is one the best alternatives for trading platforms in the future is because its Smart Tokens can support any possible combination of ERC20 tokens in the market; more on how Smart Tokens are positioned to solve liquidity for Bancor on Bitcoinist. A token can hold token values and determine its own value based on the token it currently holds: that is the principle of the Bancor protocol.

The Bancor protocol can leverage the main features of smart contracts with the main intention of creating liquidity directly into the tokens while using governing software code. Those are the Smart Tokens that we have already mentioned and explained in this article, and users can buy and sell them directly on the Bancor platform.

The Bancor Protocol which leverages the capabilities of smart contracts to build liquidity directly into tokens themselves, via the software code which governs them. Such tokens, which we call Smart Tokens™, are always available to be both bought and sold directly.

The formula that Smart Tokens use to determine a price relationship between a Smart token and its network of connections sounds pretty complicated, but in fact, is the reason why this system is so simple and easy to use and implement to exchange or trade digital assets.

Long story short, the Bancor protocol, or system if you are willing to see it that way, enables the use of technology in a futuristic and simple way to manage ERC20 tokens, which serves as a perfect environment for thousands of cryptocurrencies to grow. Bancor is a multi-currency platform with proven scalability and a decentralized approach.