Bancor Protocol - Frequently Asked Questions Guide (Blockchain Technology)

Page 1

Bancor Protocol F.A.Q. BACKGROUND INFORMATION: KEY CONCEPTS What is the long tail and how does it relate to cryptocurrencies?

3 3

What is the ‘Double Coincidence of Wants Problem’?

3

Why is there a Double Coincidence of Wants Problem in Asset Exchange?

3

What are Smart Contracts and why are they significant?

4

GENERAL OVERVIEW What is Bancor?

4 4

What is the problem Bancor is solving?

5

What is a smart token? And how is it different from a regular ERC20 token created on Ethereum?

5

What are some of the use cases for smart tokens?

6

Who’s behind Bancor?

7

Where is your team is based? Have you built any other projects in this space?

8

ABOUT THE BANCOR PROTOCOL How does the asynchronous price discovery work? How is a smart token’s price calculated? What is a CRR?

9 9 9

What happens if a user tries to instantly liquidate a percentage of the smart token supply that is larger than the CRR? 10 Does the Bancor protocol price discovery mechanism add to the price volatility, compared to crypto-exchanges? 11 COMMON QUESTIONS How is the Bancor protocol different than how cryptocurrencies are exchanged today?

11 11

How can existing small market-cap tokens benefit from Bancor?

11

Is Bancor for developers only, or for end-users as well?

11

Why would a company doing a crowdsale devote a portion of their proceeds to creating the reserve for a smart token, instead of keeping all the funds for themselves? 12 How can the Bancor protocol be used for creating something that works like a decentralized shapeshift for all currencies (aka how do token changers work?) 13 How can the Bancor protocol be used for creating decentralized and trustless token baskets (aka ETFs)? 13 How can existing tokens benefit from the Bancor Protocol?

14

Can smart tokens be traded on crypto-exchanges?

14

Do you have plans to support non ERC20 tokens such as BTC, XMR, etc? Could the Bancor protocol be used across different blockchains? 14


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.