Bancor launches digital wallet with built-in cryptocurrency conversion

The Bancor Network integrates with more than 100 blockchain apps and holds balances of ERC20 tokens within a smart contract.

Ethereum: A digital currency for applications
Building a slide deck, pitch, or presentation? Here are the big takeaways:
  • Bancor has launched a native wallet that will allow for cryptocurrency conversion of ERC20 tokens using the Bancor Protocol, without the need of an exchange.
  • The use of a digital wallet and token conversions could help cryptocurrencies be more easily liquidated for users.

On Tuesday, the Bancor Network launched a digital wallet with built-in cryptocurrency conversion that will allow users to convert their tokens without the help of a cryptocurrency exchange.

This will allow users to convert any token they may have into any token that they need or want, according to Bancor co-founder Galia Benartzi. And this can be done at a predetermined rate, regardless of the need for the token on the other end.

"They can always buy a token that they want to buy and they can always sell a token that then want to sell at the formulaically calculated price, regardless of whether or not there are people on the other side of the trade," Benartzi told TechRepublic.

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For those unfamiliar, Bancor is an open-source protocol created specifically for automated token conversions. Currently, it works with ERC20 tokens like Ethereum and EOS, but Benartzi said that cross-chain support is on their roadmap for the future.

The rise of cryptocurrencies has led to risks in using exchanges, including a complex registration process, inflated volume, and fees that profit the matchmakers, according to a Bancor press release. But Benartzi argued that an automated process like that available in the Bancor wallet would help add to the liquidity of cryptocurrencies and make them more usable in multiple contexts.

"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 press 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."

As tokens may continue to proliferate for niche purposes, Benartzi told TechRepublic that the ability to seamlessly move between currencies will be essential. One example she gave was if a user had some sort of storage coins for file storage but needed a ride-sharing coin to catch an Uber, they would need a simple process with very few clicks to make the conversion.

Bancor conversions with the Bancor Network Token (BNT) are fee-free, Benartzi said. However other tokens have a percentage of spread for the conversion, and that money is accumulated to the liquidity pool, Benartzi said, which can help fight price slippage.

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