Bancor, the most popular and valuable decentralized application on Ethereum, is planning to expand to the EOS blockchain. Bancor has recently made an announcement: Bancor has ported its public code to EOS in preparation for the release of BancorX, a decentralized cross-chain mobile network that supports Both Ethereum and EOS mainnet.
This is Bancor’s first decentralized mobile network cross-chain product, called BancorX. The product will allow users to trade EOS-based tokens (as yet unspecified) as well as tokens between EOS and Ethereum.
“Bancor is evolving into a cross-chain flow protocol.” The announcement also mentions that Bancor has released an open source smart contract on EOS, allowing users to try out the protocol in a test environment, but there is no specific timeline for BancorX’s release on EOS.
The decision to publish on EOS from Bancor indicates that it cites the transaction speed of the blockchain network, which is faster than Ethereum. But it’s not hard to speculate that this development will be expensive, especially since Ethereum users will have to pay expensive transaction fees in order to invoke smart contracts. Bancor’s answer to this speculation is that EOS eliminates the “risk of pre-emption” because transactions do not prioritize paying high fees.
It’s worth noting that while THERE are no transaction fees for EOS transactions for users, deploying decentralized applications on the blockchain can be expensive for developers unless they pass this fee on to users.
Or will it be an emergency brake?
One EOS feature not mentioned in the Bancor announcement is the ability of EOS block producers to maintain the EOS blockchain in a similar way to Ethereum miners, effectively reversing transactions. While they cannot delete completed transactions, they can still force the transfer of tokens from one address to another.
Nate Hindman, Bancor’s communications director, denied that this feature of EOS would have influenced Bancor’s decision to expand to the network, and reiterated the benefits of EOS cited in official announcements: faster transactions, zero fees, and resistance to front-running.
The FREEZE and reverse transaction of EOS is controversial, as many in the cryptocurrency community feel that these cannot be considered as the core appeal of blockchain. Indeed, many commentators have reacted negatively to EOS block producers freezing transactions for a series of stolen users following the network’s launch. The network’s arbiter then ordered block producers to freeze more accounts.
Bancor, notably in a similar circular vein, has written its ability to freeze and reverse certain transactions into its Ethereum smart contracts, according to Udi Wertheimer, a cryptocurrency developer.
Eyal Hertzog, co-founder and product architect of Bancor, defends these design features, citing the infamous DAO attack, in which millions of dollars were sipped from smart contracts and there was no way to stop the theft. The incident left the Ethereum community with a hard fork in the chain to recover the loss.
Bancor used this feature in the event of a security breach to block the transfer of 2.5 million BNT tokens in July, worth about $10 million at the time’s market value. However, Bancor failed to prevent a $125 million ethereum heist.
In contrast to Ethereum, EOS has the ability to submit alleged theft to arbitration, allowing blockchain producers to reverse the harm through an “accept, dispute or not, study” process.
Currently, Bancor’s agreement provides market management for RAM, a required resource for EOS accounts, on the EOS network. Bancor also runs a block producer named LiquidEOS, according to the source.
CoinWhiteBook will keep you updated on the Bancor agreement for more details and future developments.
