Bancor, a popular decentralized app (DApp) formerly exclusive to the ethereum network has announced that it will be expanding to EOS blockchain to benefit from faster and free transactions.
Bancor is best referred to as a decentralized liquidity network. On the ethereum network, it allows users to buy and sell ethereum-based tokens through their wallets at a low cost using smart contracts. The DApp removes the need for third-party exchanges when trading on the chain.
Following the expansion, its new product, BancorX will allow users to trade EOS-based tokens as well as between EOS-based token and ethereum-based tokens.
Through this expansion, Bancor explains that it is evolving into a cross-chain liquidity protocol.
Bancor already operates LiquidEOS, a block producer on the EOS network, and its protocol is already being used on the EOS network to govern the market for RAM. It says it has released open-source codes for smart contracts on the network.
The announcement, however, did not give any specific timeline for the move.
The Choice of the EOS Network
According to its announcement, Bancor hopes to benefit from the superior speed of the EOS network as well as its fee-less transactions.
While DApp users on the ethereum network have to pay “gas” fees to call smart contracts, EOS does not require this as it does not prioritize transactions based on fees. This makes it easier for users to engage DApps on the network.
The catch with the EOS network is that it can be relatively more expensive to deploy DApps on the network if developers don’t transfer the costs to end users.
The debate over EOS Blockchain Governance
Mixed reactions greeted the decision to freeze transactions of compromised accounts soon after its mainnet launch. The fact that they were able to do this prompted negative reactions from crypto purists and proponent of full decentralization.
In a similar manner, bancor’s smart contracts are programmed with the ability to freeze or reverse transactions.
While this has been proven useful in cases of security breaches or errors, some argue that it undermines the tenet of decentralization.