BancorX Launches With Promise of Decentralized Instant Cross-Chain Crypto Conversion

The Bancor Network announced the launch of a new generation crypto exchange service.

The new service acts as a fundamental disruptor to the existing exchange paradigm that requires depositing funds on a centralized exchange, or order matching on a decentralized exchange.

In a post on the official Bancor Twitter account on Nov. 5, Bancor revealed that the new service called BancorX will enable seamless conversion within over 110 ERC-20 and EOS-based cryptocurrencies.

According to information released by Bancor, unlike on a typical centralized or decentralized exchange, BancorX enables the automated cross-chain exchange of cryptoassets that are based on the Ethereum and EOS blockchains directly in user wallets, which eliminates the risk of depositing funds in a centralized exchange or waiting for order matching on a decentralized exchange.

The functionality of BancorX is based on the ability of BNT to function concurrently across both EOS and Ethereum blockchains, which enables seamless cross-chain transactions.

A user converts an ERC-20 token in a crypto asset based on the EOS blockchain using BancorX, the ERC-20 token is immediately converted into BNT, which is then sent to the BNT smart contract on the Ethereum blockchain.

The BancorX EOS smart contract then issues a corresponding amount of BNT on the EOS chain, and this BNT amount can be converted into EOS or any EOS-based cryptoasset using Relays on the Bancor Network.

If a user is converting from an EOS token to an Ethereum token, the same process repeats itself in reverse.

According to Bancor, a fail-safe has been included in the exchange framework, with a transfer quote built into BancorX smart contracts which assign a maximum amount of BNT that can be transferred across chains at any time.

"As BancorX goes live and the first BNTs flow from ETH to EOS and back again, Bancor will aim to remove friction, unify the user experience and ensure the system's continued decentralization and utility. With real blockchain interoperability, the possibilities for token-powered applications proliferate dramatically. We are thrilled to introduce this new tool - and to see what you do with it."