The Bancor Coin network makes it possible to create own tokens, similar to the blockchain of Ethereum. These are called smart tokens and can be converted into any other token of the network.
The concept has an uncanny potential, because it allows people to create their own crypto currencies very easily. And the Bancor crypto currency, also known as BNT, provides the basis for this.
Bancor Coin and Ethereum code – What is this crypto currency?
The Bancor protocol is a unique Ethereum code that allows you to create your own tokens, which are then linked to the Bancor crypto currency. The system is partly based on Ethereum code, a blockchain that also makes it possible to create your own tokens by using the ERC20 token as a basis. The Ban/cor network extends this concept with the Smart Tokens. With the BNT Coin development great importance is attached to a simple operability. So everybody should be able to create own coins without programming knowledge, which can be used for different purposes.
The coin is the basis and reserve of the Smart Tokens, whereby the Smart Token connects to the network. The crypto currency itself uses Ether, the coin from Ethereum, as a liquidity reserve, resulting in an intrinsic value of the coin of the Ban/cor network. This system is made possible by the Smart Contracts, digital contracts introduced into the crypto world by Ethereum. The conversions and reserve bindings are handled automatically by the Smart Contracts.
Such a token becomes a portfolio token
The protocol can be used to create a block-chain-based fund that uses different tokens as base currencies. A smart token can have other crypto currencies as the underlying value. The number of coins as a basis can be extended at will, but the coin must be based on the ERC20 token from Ethereum. Such a token becomes a portfolio token, which in turn can be traded on the crypto exchanges. This token enables investors with Bitcoin, Ether, Euro or Dollar to acquire a diversified crypto portfolio in the form of a single token. All ERC20 tokens can be stored and converted on the Ban cor Wallet. This wallet is also called Smart Wallet. Each type of ERC20 token can be converted into another ERC20 token without any fees. The conversion is based on the Ether value. This will also be possible on “Finney”, the blockchain smartphone. Sirin Labs’ company wants to work with Bancor.
With the Ban/cor protocol ICOs can be organized quite simply. ICOs are initial coin offerings, i.e. the issue of coins, mostly for the purpose of financing. Companies of all types can use the network to create smart tokens to finance their projects. ICO’s could thus become a popular and effective way of crowdfounding. Smart Tokens could also be created relatively spontaneously as local currencies for one-time purposes. One advantage of being tied to the Ban cor coin is that the tokens can be exchanged back after they have fulfilled their purpose.