03 Apr Bancor launches auto-converting cryptocurrency wallet
With 1,600 cryptocurrencies now listed on CoinMarketCap.com, it’s nearly impossible for an investor to quickly buy, convert and sell more than a small handful of standard cryptocurrencies.
Bancor’s launch of its new cryptocurrency wallet allows users to buy, store, manage, and convert automatically between any two tokens on its Bancor Network, with no counterparty, at an automatically calculated, transparent cost.
This should get the attention of cryptocurrency exchange competitors.
How the Bancor Wallet works
Bancor Wallet users can open accounts using an email address, Telegram, WeChat, or Facebook Messenger account.
When users buy a cryptocurrency with the Bancor Wallet using debit or credit cards, they can instantly convert their purchase to one of nearly 70 other cryptocurrencies using smart contracts that provide transparent rates calculated automatically by algorithms.
Users can convert their cryptocurrencies directly and seamlessly from within their own wallets, without having to deal with common issues that plague exchanges, such as:
- Complex and lengthy registrations
- Centralized servers storing user’s money
- Large spreads, transaction fees and withdrawal fees
- Minimum deposits for users and listing costs for tokens
- Rampant pump and dumps
- Fake or inflated volumes.
Bancor Wallet includes all of the most popular virtual coins such as Bitcoin, Ethereum, Litecoin, EOS and Ripple. Other less well-known coins include Storm, Blackmoon, OmiseGo, Viberate, Power Ledger, TokenCoin, Ethersportz and dozens more.
Bancor will also add future tokens, providing liquidity for new virtual currencies without having to list on exchanges and eliminating the need for cryptocurrency exchanges to connect buyers and sellers.
Smart Tokens convert coins fast
After its successful June 2017 $153 million ICO, Swiss-based Bancor has moved quickly to implement its disruptive new virtual tokens platform and wallet.
It’s an innovation that Bancor says “uses Smart Tokens, which are autonomously and continuously convertible to other tokens on the Bancor network at algorithmically calculated rates. The protocol utilizes “connector” modules, which hold balances of other ERC20 tokens within a smart contract. The Bancor Formula constantly recalculates prices to maintain balance between Smart Tokens and their connectors.”
In a Finance Magnates interview, Bancor co-founder Galia Benartzi said: “In the new Internet of value, where anyone can create a currency, digital wallets are becoming the browsers which allow users to navigate the emerging world of decentralized apps. To be useful, users need seamless and secure interfaces to blockchain-based products as well as on-demand conversion between the tokens that power them.”
Designed for mainstream users
Benartzi said the Bancor Wallet is designed with mainstream users in mind. “Users no longer need to send their cryptocurrencies to exchanges if they wish to acquire other tokens,” she added.
Bancor is decentralized, so it does not actually hold or have access to customer funds. This provides a high level of security for users. “Bancor’s smart contracts are always available to buy from and sell to users at efficient and transparent prices which are less prone to manipulation,” she added.
Future of automated token exchanges
Benartzi also talks about Bancor’s vision of allowing easy conversions between any virtual assets and eventually enabling payments using any virtual asset.
“Imagine if your coffee shop loyalty points were accepted at any cash register in the world, or your airline miles could buy cellular minutes with the click of a button,” Benartzi wrote in the company news release. “The ability to buy anything, with anything, has long been the promise of digital currencies. Bancor’s new wallet aims to deliver on that promise by offering continuous access to crypto tokens and instant convertibility between virtual assets, unlocking enormous purchasing power for consumers.”
For now, it’s a brave new approach to cryptocurrencies and a potential brave new world of payments ahead.
You can read Bancor Wallet’s announcement here.
Author: Jeff Domansky, Managing Editor
Visuals via Bancor, Pixabay