What is it?

Bancor is one of the older decentralized exchanges available on the Ethereum blockchain.
The network officially launched on June 12 2017 by starting its ICO’s. Its whitepaper was first introduced on February 13 2017.

What makes Bancor unique is that it set the standard for all Decentralized Exchange Networks. It basically invented the world’s first blockchain-based automated liquidity pool.
Basically it brought forth an Automated Market Maker (Smart Token) which is a digital currency making use of a smart contract that allows it to be issued or exchanged automatically for any token in its network.

In plain English: it is a placeholder token that through the use of a smart contract can be exchanged to ANY other cryptocurrency (or token) making use of the network. The token itself provides much needed liquidity to the network which helps establishing trades without the need for another trader to buy or sell.

This is the basis upon which many Decentralized Exchanges work. In the case of the Bancor Network will the digital currency (which makes use of the smart contract) be called Bancor Network Token (BNT). BNT is an ERC20-token.

A further in-depth explanation can be found in the following video.

Opinion and analysis:

DeFi is upcoming and growing and took a literal sprint since mid-2020 in the height of the Pandemic. It might be surprising to some to learn that DeFi has much earlier roots that stem from the period of the very first heavy Cryptocurrency run.

During 2017 and 2018 many more took an interest in Blockchain and its possibilities. Bancor Network is one of these projects that set the standard for what is to come.

It laid down the foundations upon which Decentralized Exchanges will operate. Indeed, many of the currently developed DEx (or DeEx or Decentralized Exchanges) operate very closely as to what Bancor established.

Considering tightening regulations worldwide and the growing (Governmental) support for CBDC’s, is DeFi is the next big step when it concerns Cryptocurrency and CryptoMarkets. The need for a trustless environment, as well as keeping your hard earned Bitcoin and Crypto from prying eyes that want to tax and leverage your profits made, keeps on rising.

Bancor Network is a very worthwhile project that kick-started the progress made to this day.

When it concerns DeFi, the most solid advice is to get into it ASAP and become familiarized on how DeFi works. Bancor network is the “granddaddy” of DeFi and thus a good place to start getting familiarized.
Like our previous entry “Celcius Network” the same advice is to be applied here.

For more information check out the following websites:

Official website: https://app.bancor.network/eth/data
Marketcap: https://coinmarketcap.com/currencies/bancor/
Official Whitepaper: Bancor Whitepaper (English version).

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In it we lay down the basics to Decentralized Finance.
This course is titled “DeFi Revolution” and can be found HERE.