Galia Benartzi: An alternative choice in the face of hackers stealing of centralized exchanges like Binance
Crypto enthusiasts tend to trade tokens on traditional centralized exchanges. But will the recent event of Binance being hacked transfer users to decentralized exchanges? What is the current situation of these decentralized exchanges? Galia Benartzi, co-founder of Bancor, told Jinse Finance & Cointime some basic information.
Galia Benartzi explained that DEXs depend on peer-to-peer matching to process token conversions, which may have liquidity problem if the token only has a small number of traders. However, Bancor users can convert directly against smart contracts using staked liquidity to fulfill conversions and continually balance prices. Any project can add a token to the network by staking an equal value of those tokens and BNT in a smart contract.
Bancor launched its first decentralized liquidity network, the Bancor Network, in June 2017, with more than 140 ERC-20 and EOS tokens going live and 8700+ token pairs created since then. Now, with its expansion onto the EOS blockchain, Bancor launched BancorX, the first cross-chain decentralized liquidity network. Galia said that users of BancorX can perform token conversions across blockchains without having to deposit funds on an exchange and without the need for order-matching. BancorX has experienced a surge of activity since its launch.
Nothing is 100% perfect. Galia Benartzi thinks that the biggest challenge for decentralized platforms is user experience. Bancor is designed to simply introduce new users to blockchain without them needing anything more than a mobile phone or Telegram. During the bear market, an increasing need for decentralized platforms like Bancor has been witnessed. As for the future development of Bancor, Galia Benartzi said that whether Bancor will integrate Tron is uncertain. However, its aim to connect the long-tail of tokens and blockchains will continue.
Executive editor： Fangrui Guo