EOS FOR IDIOTS: BancorX

Welcome to the first article in a brand-new series called EOS FOR IDIOTS.

The goal of this series is to make EOS really easy to understand. I want to make it possible for literally anyone to understand how EOS works.

The format could evolve based on feedback from EOS newbies, but for now, each article will contain a simple summary at the very beginning. This will ensure that even the lightest of readers can quickly get the gist of the topic.

Another mini goal of this series is to give information about EOS without causing migraines. Most articles about EOS end up giving people only two things: confusion and migraines.

EOS is complex and an EOS FOR IDIOTS series is way overdue. In this series, words like algorithm, will be avoided like the plague. 99% of the population doesn’t really know what an algorithm is, so I will use the word math instead of algorithm (whenever possible). Additionally, you will never see any computer code contained in this series.

When I find a video that does a better job of explaining the concepts, it will be linked at the beginning of the article, right after summary. Cheers to the future of (hopefully) migraine-free EOS articles and thank you for reading the very first article in the EOS FOR IDIOTS series.

BancorX

Website: https://eos.bancor.network/Telegram: https://t.me/bancor

How To Use BancorX:

1. Sign into the Scatter Chrome extension: https://chrome.google.com/webstore/detail/scatter/ammjpmhgckkpcamddpolhchgomcojkle
2. Go to https://eos.bancor.network/
3. Decide which tokens you want to sell and buy.
4. Press the Next and Proceed buttons to do the transaction.
5. Press the Accept button in Scatter, you’re done!

Which EOS tokens are available for exchange on BancorX?

CET, HORUS, DEOS, IQ, LUME, MEETONE, MBC, COAT, PGL, HVT, KARMA, FBX, EPRA, DICE, BLACK

What Problem Does BancorX Solve?

BancorX solves the problem of people not being able to buy and sell smaller tokens on EOS in an instant manner. BancorX is able to do this because it does not rely on buyers and sellers. Instead, math is used to enable any token seller to instantly convert one token to another in the EOS ecosystem.

Smaller tokens and exchanges suffer from a lack of buyers and sellers. Because exchanges have to match up a buyer who wants to buy the exact amount of a particular token from a seller, this causes the tokens to not be very liquid. Liquid just means the ability of a token to be bought and sold quickly. If a seller has to wait for three days for a buyer to show up, then the usefulness of the token degrades.

BancorX is able to solve this problem by getting rid of buyers needing to be matched up with sellers.

In Bancor, there is no matching up of people. Bancor uses smart contracts and math to create a formula for converting one token to another. I’m not going to delve into how this complex process is done because that doesn’t follow the ethos of EOS FOR IDIOTS. If you want to learn more in-depth details about how Bancor’s math works, you can delve into it. I got as far as understanding that token conversions on BancorX are made possible by smart contracts and relays.

“Wait a minute. The title of this article is BancorX but you keep mentioning Bancor…..What’s the difference between Bancor and BancorX?”

Bancor is currently operating to create conversions between ERC-20 tokens on the Ethereum network. BancorX is now operating on the EOS network, plus cross-chain conversions are now possible. This means that you could convert an ERC-20 token for an EOS base token. BancorX is the EOS compatible token exchange where you, for example, will be able to convert your BLACK tokens to KARMA tokens instantly.

Note: BancorX launched on November 5, 2018. Even though the Scatter Chrome extension is not being updated, BancorX is still only usable via that extension. We tried using the Scatter desktop version with BancorX, but it didn’t work. If you had different results, please leave a comment below.

More About Bancor :

And now for a comic:About Us

Stellabelle recently joined the GenerEOS team. GenerEOS is a social enterprise block producing candidate with a mission of promoting and supporting scalable and highly reliable block production whilst giving back block rewards to Social Causes.

Based out of Sydney, Australia, GenerEOS is founded by a team of like-minded blockchain enthusiasts with diverse backgrounds and a passion to make a difference in the world and fostering the spirit of generosity by giving back.

Subscribe to the GenerEOS Medium publication to read more in the EOS FOR IDIOTS series and keep updated on everything EOS.

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EOS FOR IDIOTS: BancorX was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.