The Bancor Network, a decentralized cryptocurrency system, is set to launch its native wallet, complete with built-in automated token conversions. This has been determined based on Bancor’s private communication with Cointelegraph.
Now Easier Than Ever for Amateurs to Trade
The launch of this wallet is a symbol that the company is set to take the next step in the development of its liquidity solution, which aims to make it possible for common users and crypto amateurs to operate digital currencies. According to the company, users can now directly convert their digital currencies right from their wallets, without the need to match two users in an exchange.
The Bancor Protocol makes tokens always available for buying and selling directly from within the wallet, giving users continuous access to any Blockchain-based project, regardless of how frequently its token is traded on exchanges.
According to a statement from Bancor, there are well over 100 blockchain apps with their own cryptocurrencies vying for integration into the Bancor Network. These include widely-known tokens like EOS, ETH and DAI. Reportedly, Bancor does not hold nor have access to funds from customers and this helps enhance the platform’s security. Despite being Founded in June 2017, Bancor is already playing in the big leagues, surpassing other notable decentralized exchanges like Waves Dex, IDEX and OpenLedger Dex with regards to trade volume.
Centralized Systems not Offering a Central Solution
It is notable that most digital currency exchanges feature centralized components, and this may be the one factor that makes them vulnerable to the tricks by hackers. By entrusting their private keys and funds to a third party, centralized exchanges are supposedly making it much easier for hackers to cause massive losses through theft of user data.
Decentralized Exchanges Come to the Rescue
Decentralized or peer-to-peer exchanges that promise to work on ensuring the privacy of user data by excluding the need for a middleman. Such exchanges use smart contracts and atomic swaps in their trading mechanisms, and this means that users will always be in complete control of their funds.
Based on their mode of operation, decentralized trading platforms ensure more anonymity and this eventually means more resistance to hacking attempts. In fact, a recent study gave a damning report of the liquidity of digital assets and cryptocurrencies. With this study being based on the ‘slippage method’ it has become apparent that the trading volumes of upcoming centralized crypto exchanges may experience great inflation by third parties.
What do you think about the move by Bancor to launch its native wallet? Is the built-in token conversion feature set to revolutionalize how trades are done? Let us know of your views in the comments section below.