Israeli Startup Wins At The International Blockchain Competition
At the most recent CoinAgenda, the leading conference for digital currency investors, a total of eight startups competed in Puerto Rico by providing 15-minute demonstrations to investors and leaders in the digital assets industry. Out of the eight competing companies, Bancor, an Israel-based startup, was voted as best public blockchain.
The Bancor protocol is an Ethereum-based smart contract token conversion protocol that enables a single party to convert any token to another, without having to exchange with second parties. This is achieved through the use of reserve-tokens, which provide liquidity through autonomous algorithmic price discovery, irrespective to trade volumes.
According to Bancor, its protocol presents a technological solution in the domain of asset exchange to the classic paradox in economics known as the “double coincidence of wants” paradox. Bancor uses smart contracts to create tokens with the ability to hold one or more tokens in reserve. These tokens may represent fiat and/or national currencies or other types of assets. This creates a new type of ecosystem that is essentially a decentralized asset exchange where instant liquidity is achieved regardless of a token’s market cap or status. In addition, the Bancor protocol enables the creation of decentralized ETFs (Exchange Traded Funds).
The victory for an Israeli startup is no surprise. Israel has been an extremely progressive advocate of blockchain innovation. In January 2017, Moises Cohen, co-founder of The Floor, a fintech hub dedicated to connecting Israeli startups with global financial institutions, said, “There are now around 500 cyber startups in Israel, ten years from now there will be 500 blockchain startups in Israel.”
On March 29, 2017, Tel Aviv will host the Intel & The Floor Blockchain Hackathon with the participation of some of the world’s largest financial institutions such as KPMG, Accenture, and HSBC. People are invited to work in teams to develop a working prototype of a banking and financial services industry solution, based on a pre-defined usage.