The Bancor Protocol is named in honor of the Keynesian proposal to introduce a supranational reserve currency called Bancor to systematize international currency conversion after World War II. The Bancor Protocol proposes the first technological solution for the Coincidence of Wants Problem in asset exchange. It standardizes smart tokens, enabling asynchronous price discovery and continuous liquidity for cryptocurrencies using constant ratios of reserve tokens held through smart contracts, acting as automated market makers. The Bancor protocol enables the creation of hierarchical monetary systems with no liquidity risk.
Bancor (BNT) is an ERC-20 compatible token and serves as the hub network token for the Bancor Network. BNT will be used to establish the first decentralized interconnected currency exchange system which does not rely on matching bid and ask orders, thus remaining liquid irrespective of its trading volume. BNT will hold a single reserve in Ether. Other smart tokens, by using BNT as (one of) their reserve(s), connect to the BANCOR network and become exchangeable to each other.