Whereas decentralised exchanges allow users like you to create an account and trade immediately with it, there is no support and a reasonably unattractive user interface, elements that can affect their perception and effectiveness.
It’s not just aesthetics: numerous DEX is not practical or user-friendly.
However, the Bancor initiative is now occupying the scene, and its presence is a more than fair attempt to improve the crypto universe, the blockchain technology, and the whole financial picture; it seems that Bancor starts to deliver on its record-breaking $153 million ICO.
The Bancor protocol is a platform that allows the decentralised exchange of assets; that is without any third parties or external agencies determining the market behaviour and value, but with some exciting additional features: its smart contracts are run in the form of Smart Tokens.
Why Are They Called Smart Tokens?
They are called Smart because their smart contracts need pre-existing tokens to be kept in reserve, which will be converted into the cryptocurrency that the user requires at the moment of withdrawal.
That ability itself makes the Bancor protocol a solution for liquidity since people will be able to buy or sell assets any time without them losing significant value.
If a person keeps a token which can be exchanged with relative ease, like Smart Tokens, they will have the capability of buying into or cashing out of one the minute they desire to do it.
Smart Tokens are a valuable commodity since they don’t need to be traded in exchange for them to be liquid assets. Besides, they don’t require counterparties with their risks.
The current cryptocurrency model, often run through decentralised exchanges, is a fantastic alternative for online banking, a tool that is, little by little, staying behind because of the added benefits of digital coins.
However, decentralised exchanges suffer from a liquidity issue, while Bancor Smart Tokens are looking to solve cryptocurrency liquidity, to their claim, without much effort.
Besides, the better aspect of Bancor is its inclusive nature.
Not only is convenient, but its simplicity is well suited for people of all ages, statuses, financial sectors and locations. The magic of this model is in its ease of use.
Bancor: Simple Solutions
Bancor provides solutions to the decentralised exchange unfriendly and impractical layout, which will undoubtedly draw clients and users.
What this platform wants to achieve, and where it sets apart from other methods, its simplicity.
You can enjoy the benefits of the Bancor protocol in just a few steps.
All you need to do is choosing a platform to use. Options include Facebook Messenger, Telegram, WeChat & Status. If you prefer the former, for example, the next step should be signing up at the Bancor Platform while logging in with your Facebook Messenger account.
From there, you will receive guidance from the Bancor Bot. You need to answer some fundamental questions related to your token, its symbol, a little information about your business activities, and such.
You are required to create a password for your digital wallet, and you are done!
It’s a very straightforward process. Your token is now active, so you need to issue the total amount of coins and then set the CRR (cash reserve ratio.) You are now ready for launch!
A Key To Open All Locks
To sum up, Bancor is very easy to use, since just about anybody will be able to create a token, even those people that don’t possess expert technical knowledge on the matter.
It also offers continuous and continued liquidity, because customers will be able to retain the value of their assets no matter when they buy or sell them; it involves no extra fees, which is a substantial advantage over other platforms that charge you for performing operations.
Also, it has less of a volatility factor, because each transaction is executed and processed in a fractional manner, which means fewer spikes and more consistency in the prices.
The Bancor protocol was developed to bring a sense of stability in the cryptocurrency and digital coin market, focusing on the few shortcomings of decentralised exchanges and trying to work from there.
Visit the official Bancor Protocol Website.