Bancor: Smartcoins With Infinity Liquidity

[saburgeon]

The concept behind Bancor is so simple. Couldn't something like this easily be replicated by having bitshares as the reserves and building a token on top of it?

Yeah, but I think most BTS shareholders are apprehensive of diluting BTS tokens for new features based on past experiences.

Me personally... I say we keep development moving and implementing new features, otherwise we will be left behind... as far as blockchain tech goes.

I agree we should move forward, because if this is successful, then exchanges will become obsolete. I think Bitshares is the better platform to implement something like Bancor since Ethereum has scaling issues and increasing gas costs. The great thing about Bitshares is that a protocol like Bancor is easily within their capacity, so adjustments can be made if needed, but I want to see how Bancor turns out first.

[yvv]

The concept behind Bancor is so simple. Couldn't something like this easily be replicated by having bitshares as the reserves and building a token on top of it?

This would be a very good PR for bitshares, if it could show to all those "investors" that you don't actually need $150M ICO to implement something like this.

[CoinHoarder]

The concept behind Bancor is so simple. Couldn't something like this easily be replicated by having bitshares as the reserves and building a token on top of it?

Yeah, but I think most BTS shareholders are apprehensive of diluting BTS tokens for new features based on past experiences.

Me personally... I say we keep development moving and implementing new features, otherwise we will be left behind... as far as blockchain tech goes.

[saburgeon]

The concept behind Bancor is so simple. Couldn't something like this easily be replicated by having bitshares as the reserves and building a token on top of it?

[david johnson]

Bancor Network is a protocol that is based on built-in price discovery and mechanism of liquidity for cryptocurrencies on smart blockchains. In a more basic way explaining, it is primarily a platform for smart token creation and exchange of those tokens. Tokens created in the network are backed by Bancor’s own token called BNT. The BNT reserve supplies a strong liquidity for trading the tokens. Next to smart tokens, it is also possible to trade other Ethereum tokens within the platform using smart contracts.
(http://blog.bancorprice.org/bancor-network-an-introduction/)

[pc]

Bancor will be going live in about 2 hours: https://blog.bancor.network/bancor-network-token-bnt-activation-e1766b62a73d

[yvv]

Bit20 does pretty much the same job as shapeshift's prism. May be we need a bit easier way to create such tokens?
 

[CoinHoarder]

The main showstopper I see with Prism is that you need a counterparty. The blockchain itself should not act as a counterparty to speculators, IMO. This means that creating a Prism is not sufficient, you must also find someone as your counterparty. The latter is what makes Prism much more complicated than Bancor, IMO.

I had imagined that Bitshares users would be the counterparty on Prisms, similar to the way they are the counterparty for Smartcoins.

Prisms would be traded on a separate tab/page on the DEX than Smartcoins.

I do agree that the necessity for a counterparty is a negative though.

[pc]

Bancor:
High liquidity
More complicated economics
More complicated to implement into Bitshares

Hm, maybe it's because the Bancor whitepaper is more detailed than what I could find about Prism, but I think Bancor is much simpler than Prism.

The main showstopper I see with Prism is that you need a counterparty. The blockchain itself should not act as a counterparty to speculators, IMO. This means that creating a Prism is not sufficient, you must also find someone as your counterparty. The latter is what makes Prism much more complicated than Bancor, IMO.

[CoinHoarder]

Perhaps we should implement it after all, just to prove our superiority... https://twitter.com/joeykrug/status/874450730182000641

I had forgot about Bancor Smart Tokens the other day when I was discussing adding Prisms to Bitshares. If Bitshares were to add a feature, then I think this or something more along the line of Prisms (https://bitsharestalk.org/index.php/topic,24271.0.html) would be a good idea.

After learning how Bancor works, I have realized that Smartcoins still have their place, as you cannot create a Prism/Bancor Smart Token with Gold, Silver, USD, GOOG, APPL, (etc...) in it without using something like a Bitshares smartcoin to go in the Prism/Bancor Smart Token portfolio.

Copying either Bancor Smart Tokens or Prisms on the Bitshares blockchain would each have their own separate pros and cons:

Bancor:
High liquidity
More complicated economics
More complicated to implement into Bitshares

Prisms:
Low liquidity
Less complicated economics
Less complicated to implement into Bitshares

IMO, I think the liquidity provided by the Bancor Smart Token model be worth the higher development costs, because I think that liquidity is still the main thing holding Bitshares back. Implementing Prisms on Bitshares will probably take another 3 to 5 to 10 years before we see them liquid enough to be very useful. We would have to wait for the Prism's market liquidity to bootstrap itself slowly over time, similar to how we have had to wait a long time for decent Smartcoin liquidity.

Bancor on the other hand has liquidity baked in from the get go. This would bolster liquidity on the DEX. You could create one asset Bancor Smart Tokens that only contain one Smartcoin in its portfolio, such as bitUSD, and let the free market decide which market pegged asset design they like more. Then there's the added benefit of easily creating multi-asset  Bancor Smart Token portfolios too.

It seems like those knowledgeable with Ethereum think Bancor will not work on Ethereum due to scaling issues, so I think it would be really good marketing if the same model were made to work on Bitshares. Along with all of the added benefits of adding the feature. I am normally against dilution for development/advertising, but I think such a feature would be a big boost to the value of the Bitshares token and its DEX.

[yellowecho]

Perhaps we should implement it after all, just to prove our superiority... https://twitter.com/joeykrug/status/874450730182000641

lol!

[pc]

Perhaps we should implement it after all, just to prove our superiority... https://twitter.com/joeykrug/status/874450730182000641

[yvv]

This is crazy. They just started their crowd sale and they already raised +$80M worth of ETH

https://etherscan.io/address/0x5894110995b8c8401bd38262ba0c8ee41d4e4658

Bitshares community should learn how to promote our product. The secret of successful marketing is: very low fractional reserve, no interest, no dividends, not even scheduled buy back. The basic message should be: give us your money and fuck off. Look people, this works

[Permie]

Opposite is also true. It should not be difficult to make a better bitUSD in ethereum, it is surprising that nobody did it yet.

Disagree, oracles are still very shitty on ethereum.

Would you mind expanding on why BitShares is superior to ethereum in this case?
The more information like this that is public on the forum the better, imo
Cheers

[fav]

Opposite is also true. It should not be difficult to make a better bitUSD in ethereum, it is surprising that nobody did it yet.

Disagree, oracles are still very shitty on ethereum.