Bancor Protocol is the standard for the creation of Smart Tokens, beginning on the Ethereum blockchain. At its most basic, the Protocol is an ERC-20 compliant smart-contract, in which a new token can hold one or more other tokens in its reserve at a pre-set “Constant Reserve Ratio” (CRR). A detailed overview of the Bancor Protocol and its implications is available in the most recent Draft Whitepaper below.
The Bancor Protocol provides a simple and powerful building block for developers and non-technical users alike to create new types of monetary systems, applications, currency networks and tokens not previously possible, all through the use of token reserves and smart-contracts with the ability to automatically issue and destroy themselves according to a formula. Value can be recognized, stored and moved in ways never seen before.
Smart Tokens are a new type of always-liquid token, managed by a smart-contract which issues and destroys itself according to a transparent formula. Bancor contracts are written in Solidity and tested by the industry's top security auditors. The current code is available for review below.
The BANCOR token is the first and default network token issued by the Bancor Protocol Foundation. New Smart Tokens can use BANCOR as one of their reserve currencies in order to join the Bancor Network and benefit from increased stability and the appreciation of any token(s) in the network. As the world’s first reserve token of its kind, BANCOR encapsulates all credit created on the Network.