Tezos XTZ to Bancor BNT Exchange

Crypto Pair Details: XTZ to BNT

Tezos XTZ

Tezos is a coin created by a former Morgan Stanley analyst, Arthur Breitman. It is a smart contract platform which is does not involve in mining Tezos coins. It is a coin that promotes themselves on major ideas of self-amendment and on-chain governance. It is an Ethereum-like blockchain that hosts smart contracts. It allows the community to vote and improve its flaws. Any token holder may delegate their voting rights to others in the network. The coin uses a generic network shell which allow different transaction and consensus protocols that a blockchain needs to be compatible. The source code is implemented on OCaml which is a fast, flexible and functional programming language which should suit an ambitious project and its technical requirements. Tezos’ proof-of-stake consensus algorithm is different from the delegated proof-of-stake (dPOS) where they go by the name liquid proof-of-stake. This liquid proof-of-stake that Tezos uses focus in filling the gap between both security and decentralization but still being able to take advantage of the benefits that delegated proof-of-stake offers. The staking process in Tezos is called “baking”. In this blockchain, bakers who make deposits will be rewarded for signing up and publishing blocks. However, if a baker commits any bad behavior the deposits will be forfeited. Baking & Endorsing Baking is what Tezos refers to as the action of signing and publishing a new block in the chain. Bakers need at least 10,000 XTZ to qualify as a delegate, and having additional delegated stake increases their chances of being selected as a Baker or Endorser. At the beginning of each cycle (4096 blocks), the Bakers for each block are randomly selected and published. Bakers earn a block reward of 16 XTZ for baking a block. In addition to the Baker, 32 Endorsers are randomly selected to verify the last block that was baked. Endorsers receive 2 XTZ for each block they endorse. Block Rewards & Inflation Block rewards are funded by protocol defined inflation. Rewards are calibrated so that the number of XTZ tokens grows at roughly 5.5% per year. If 100% of Tezos tokens are delegated, the annualized yield will be 5.5%. Currently, 38% of Tezos tokens have been delegated, including the 10% owned by the Tezos Foundation, so the annualized yield is currently 14%. To ensure Bakers and Endorsers act honestly, they are required to post a security deposit for each block they Bake or Endorse. They forfeit this deposit in the event of malicious activity, such as double baking or double endorsing a block. In 2018, Tezos successfully launched their main network after delaying the launch due to corporate governance disputes. The Tezos foundation planned to transition the network to a mainnet, or a more complete version. The foundation has also raised $232 million in July 2017 to build the network and issue a new type of cryptocurrency to its backers in one of the largest- ever initial coin offerings. The founders have also made it clear in their blog that the network is using a new blockchain technology hence unexpected issues may still occur affecting the network. Check out CoinBureau for the complete review of Tezos.

Bancor BNT

Bancor is a blockchain protocol that allows users to convert between different tokens directly as opposed to exchanging them on cryptocurrency markets. The project offers a network, which we’ll discuss soon, that works to bring liquidity to the majority of tokens that lack a consistent supply/demand in exchanges. That network is built on smart contracts and a new class of cryptocurrencies that the team calls “Smart Tokens.” Bancor is looking to provide support to the illiquidity that currently exists within the cryptocurrency market. Illiquidity isn’t so much an issue for top coins like Bitcoin or Ethereum because there are always buyers and sellers looking to exchange those coins. It is definitely an issue, however, for the thousands of other tokens that may serve legitimate decentralized purposes but haven’t attracted enough attention in the market to be liquid. Bancor’s protocol uses smart contracts to create Smart Tokens, which serve as an alternative mechanism for trading. A key characteristic of the protocol is that it doesn’t call for an exchange of tokens with a second party, as in the case of cryptocurrency exchanges. Rather, it employs Smart Tokens to convert between different ERC-20 tokens internally. These conversions take place through the blockchain’s protocol and completely outside of cryptocurrency exchanges. Smart Tokens process token conversions internally by holding reserves of other ERC20 tokens within their Smart Contract. They can then convert back and forth between those reserves as users request it. The Bancor team consists of a core Foundation Council and their Advisory Board. The Foundation Council includes four individuals based out of Zug, Switzerland. Bernard Lietaer is a Belgian civil engineer, economist, author, and professor. Lietaer specialized in monetary systems and promotes the notion of communities creating their own local currencies. Guy Benartzi serves as co-founder and is recognized for founding the gaming company, Mytopia. Benartzi also co-founded Particle Code, a development studio based in Tel Aviv, Israel. Guido Schmitz-Krummacher is an executive of the Bancor Protocol foundation that’s involved with a variety of commercial entrepreneurial ventures in Switzerland. His involvement in the crypto space includes that of Bancor as well as an executive position in crowdfunding network, Tezos (XTZ). One of the key elements of the Bancor Network is the automated pricing. This comes from the Smart Tokens’ built-in automated market makers. These automated market makers mean that the tokens’ smart contracts always buy or sell Smart Tokens from or to any user in exchange for any connector token (as well as any token found in the network). The price comes from the Bancor Formula. This formula that is responsible for balancing a Smart Token’s demand and supply while also maintaining the ratio between the token’s total value with the connector token balances. The creator of the Smart Token configures these ratios, known as the connector weight. The creator can adjust them with the goal of decreasing or increasing the liquidity level of the token. The connector weight indicates price sensitivity, or how much sells and buys affect the price movement. Any time the prices no longer syncs with prices listed on external exchanges, the arbitrageurs will quickly balance the gaps.'

SOURCE: COINGECKO

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