Bancor: Total Game Changer

/Bancor: Total Game Changer

Bancor: Total Game Changer 2018-02-22T16:12:09+00:00

The story of Bancor

The year of 2017, may forever go down in history as the year of Cryptocurrency. The Bancor coin has found its fair share of fame and criticism. In the US, Bancor was treated as one of the biggest news stories of the year. This widespread attention received by Bancor was largely down to the success of its ICO (Initial Coin Offering). An Initial Coin Offering is an unregulated process in which funds are collected for a brand-new cryptocurrency venture. ICOs are a lot similar to IPOs, Initial Public Offerings. However, ICOs are more inclined to a typical crowdfunding project.

Bancor demonstrated the strength of ICOs in 2017. It made a huge mark in the minds of cryptocurrency investors. Nevertheless, what is the fuss all about? Here is the story of Bancor.

What is Bancor?

  • Bancor aka ‘The Bancor Protocol’ is an enterprise of the B Protocol Foundation, a non-profit association founded in Zug, Switzerland.
  • The Bancor protocol enables any user to generate an original, one of its kinds, cryptocurrency named ‘smart coin’.
  • This smart coin has the capacity to trade and hold other cryptocurrencies.

This enables the intelligent coin contract to function as a distinct market maker by mechanically calculating its price and delivering liquidity for other currencies.

  • The Bancor cryptocurrency is able to eliminate the requirement for a third party to be present during transactions.

Origins of Bancor, how did it start?

  • The Bancor currency started off as a worldwide currency.
  • Two Britishers – John Maynard Keynes and E. F. Schumacher, planned, conceptualized and created it in 1940-1942.
  • The government of the United Kingdom wished to propose it to be introduced after the end of the World War II.
  • The B Protocol Foundation was founded in 2017 to encourage the growth and acceptance of the Bancor Protocol, a standard for the formation of fundamentally trade-able coins. This was the core of Bancor foundation.

What is the product? Bancor analysis

To understand Bancor Coin, we need to understand that each and every smart coin is liquid at some point in time. Bancor Coin or simply, BNT is the Genesis smart coin that was introduced to found the BANCOR network. The role it was intended to play was that of a native currency.

The Bancor protocol supposedly came up with a new solution that aimed to eradicate-

  1. the problem of barrier-to liquidity
  2. the problem of double coincidence of wants

They aimed to eradicate these problems by developing:

  • An asynchronous pricing model aided by the asset-holding smart-coin.
  • The concept of such a smart coin was seen by many as a revolutionary prospect.
  • It provided a simple, yet, powerful element for applying new kinds of financial models and value networks.

Here are the things that Bancor blockchain aimed to achieve. These promises and expectations are also the reason why the cryptocurrency was so hyped:

  • The Bancor protocol was presented as the initial technological solution to the age-old economic dilemma called the ‘double-coincidence-of-wants’. This problem is common in asset exchange. In the barter system, this issue was resolved by money. In this case, money is the value carrier for goods.
  • Bancor aimed to make the process of launching tokens on Ethereum a lot easier. Earlier, a person wishing to launch their own token on Ethereum had to write code and go through a rigorous process. Bancor promised to standardize this process, making it easy for anyone to launch tokens.
  • Bancor was also hyped because it provided liquidity. It is compatible with past tokens on Ethereum, for example, Golem GNT.

The Bancor definition was presented as something that made the whole process very smooth. Funds were supposed to come in and go out to rebalance the price of the tokens. There was no counter-party risk, the coin had lower volatility, and thanks to its smart contracting system, it appeared to have a great reserve depth of funds.  This is why Bancor was hyped so much.

How much they raised and how did they do it?

Bancor did its Initial Coin Offering (ICO) on June 12, 2017. It raised $144 million in a few hours. This is the record for the most successful crowdfunding in history.

Now, one may ask, “How was it so successful?” Bancor marketed its product as a public algorithm, which can be used for proposing an offer or ask the valuation for other owners’ coins. To make sure that they would sell the pitch so successfully, they formulated:

  • A credible team.
  • Multiple rounds of funding.
  • Diligence throughout the process.

Where are they today and why did it turn out so?

Bancor CEO and co-founder Galia Benartzi said that her company would deal with ‘patience and understanding’. The price of BNT is still adjusting to link the gap between the perceived BNT value prior to the ICO and the actual value.

To call Bancor a complete failure would be harsh. However, it certainly did not live up to the expectations it created after its successful crowdfunding.

  • Many Economic critics labeled it as Bancor scam.
  • BNT failed to demonstrate techniques that were spoken of.
  • The price rise was not constant enough for people to take further notice. It lost 50% of its value since the crowdfunding.
  • Many cryptocurrency enthusiasts suggested using ETH over BNT as a reserve currency.

The Bancor coin news stories and its initial success inspired many other blockchain currencies to launch themselves. Filecoin for IPFS is a good example. Bancor certainly gave a huge boost to the potential of ICOs.  It also gave the world some hope that community currencies will be able to generate powerful incentives, which reward truthful partaking and penalize deceitful participation.

Companies that granted attention like Bancor

All the companies listed below, just like Bancor are emerging, blockchain technology promoting financial services.

Zcash >>

Zcash is offering its users full confidentiality while conducting various payments. It has a decentralized network thanks to a public blockchain. Here are some more details about Zcash:

  • Founded in 2016.
  • Based in the U.S., Lakewood.
  • Average transaction volume per day = $84,700,000
  • Total raised funds = $1,000,000

NEM.io >>

The foundation known as NEM.io is a non-profit organization, which is aiming to develop the blockchain technology recognized as NEM.

  • Founded in 2015.
  • Based in Singapore.
  • Average transaction volume per day = $10,700,000.
  • Total raised funds – N/A.

Blockchain.info

The blockchain.info is a platform, which is aiming to make the use of Bitcoins easy, trustworthy and convenient for everyone using it.

  • Founded in 2011.
  • Based in the Luxemburg.
  • Average transaction volume per day =N/A.
  • Total raised funds – $70,000,000.

Latest ICOs who sweep attention

Here are some of the latest exciting ICOs, similar to Bancor –

LaLa World >>

Aimed to help migrants and their unbanked families.

  • Token Sale Opening – January 5, 2018.
  • Closing date: February 5, 2018
  • Based in Singapore.
  • Concept – The levies charged by the mediators for the monetary services for immigrants, on an average is somewhere around 7-10%. Applying blockchain, LaLa World aims to reduce this considerably by eliminating all the mediators for these facilities and reduce the commission to almost 2%.
  • Just like Bancor, it operates on Ethereum Blockchain.

SOFIN

a marketplace stage aimed to bring together creditors and debtors.

  • Token sale opening date: January 15, 2018.
  • Closing date: March 15, 2018
  • Concept: Loans and advances are given in the fiat currency of the nation of the borrower.
  • SOFIN enables the currency to be traded through the SOFIN token, even if the debtor and the creditor are of different nationalities.
  • Just like Bancor, it operates on Ethereum Blockchain.

CREDITS >>

Platform to create financial facilities.

  • Opening date for the upcoming sale –January 15, 2018.
  • Closing date: February 15, 2018.
  • Based in Singapore.
  • Much like Bancor, the company aims to use blockchain technology and smart contracts, establishing its own internal cryptocurrency.
  • They are attempting to attain inimitable technical parameters of the network, delivering about 1,000,000 transactions every second.

The success of Bancor’s ICO was just the glimpse of how the future economy is transforming. Learning about these new products that use Blockchain technology can be a great way of investing and making money.

To sum things up

We hope now you have a better idea about a topic discussed so often but at the same time a mysterious one, which was a bit tough to keep up with. Please, make sure you check our website and learn more about the world of cryptocurrencies. Thank you and see you next time!