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What is Bancor (BNT) and how does it work?

by Financial Economy

Bancor originated based on ERC-20, and the majority of its founders are Swiss bankers. Its full name is Bancor Network and it is a DeFi project due to its working principle. The purpose of the Bancor project is to provide a transition between cryptocurrencies. Exchange of crypto coins can be made in accordance with their value. Information about ” What is Bancor (BNT) and how does it work?” is in rest of the article. You can browse here for information about Basic Attention Token (BAT).

What is Bancor (BNT) and how does it work?

DeFi projects are the name given to decentralized and non-centralized financial structures. With DeFi, the aim is for people to have easy access to traditional financial instruments and to make the transactions more fair by making the decision of an algorithm or a community, not a center.

Bancor (BNT) provides the transition between cryptocurrencies with the blockchain network running on the ERC-20 base. This transition is made from Bancor’s own asset pool. Users convert any cryptocurrency to any cryptocurrency from the Bancor network. Since Bancor has its own pool of assets for this transformation, there is no need for buyer or seller concepts.

You don’t need to find a reseller or wait to come across a seller for the cryptocurrency you want to convert. The exchange is made instantly from the crypto currencies in the asset pool. Bancor offers a very different method from other exchanges by performing these buying and selling transactions with Smart contracts without the need for a second person.

What is Bancor Network Token (BNT)?

BNT is basically a crypto currency issued by the same people so that it can be used in the Bancor system. It is a crypto currency held in Smart Contracts in order to exchange cryptocurrencies on the Bancor system. It is similar to banks holding reserves. Since Bancor is a DeFi project, transparency is one of the most important issues. You can also see all BNT balances held in smart contracts and other crypto currency balances in the asset pool.

For details: https://en.wikipedia.org/wiki/Bancor_(cryptocurrency)

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