Bancor launches BancorX for cross-chain token trading

Today, Bancor, the decentralized liquidity network, officially launched BancorX, a decentralized application enabling users to convert between Ethereum and EOS-based tokens directly from their wallets. BancorX will leverage Bancor's native token, BNT, to make the cross-chain transfers. The process for a BancorX transfer from Ethereum to EOS is as follows:

  1. An Ethereum-based token is converted to BNT.
  2. The converted BNT is sent to BancorX's smart contract on Ethereum.
  3. Oracles monitor the BancorX smart contract on Ethereum and report the BNT amount and destination to a BancorX smart contract on EOS.
  4. The Ethereum-based BNT is removed from circulation on Ethereum by the BancorX smart contract.
  5. The BancorX smart contract issues EOS-based BNT on EOS.
  6. The EOS-based BNT is converted into an EOS-based token and sent to its destination.

The process for converting from an EOS-based token to an Ethereum-based one is similar but in the opposite direction.

While BancorX helps the stages for Ethereum and EOS interoperability, some members of the crypto community are concerned about the oracles on BancorX. According to Bitcoin developer Udi Wertheimer, Bancor has not disclosed the identities of the three oracles monitoring the BancorX smart contracts and there is a risk that if these oracles are compromised, an attacker can potentially inflate the BNT supply.

(Source: Bancor)