$13.5 million worth of digital token stolen in Bancor, a Cryptocurrency start-up

Bancor, an- Israel based company that runs a ‘decentralized’ crypt-o-currency mining & exchange network that allows users to convert between two tokens like an exchange without involving any counterparty. The network allows all kinds of virtual coins to be bought and sold instantly.

A standard crypt-o-currency exchange involves exchange of tokens between two parties. A Bancor protocol in contrast works on an alternative trading mechanism that uses smart contracts to create smart tokens.

Smart Contract: A smart contract is a computer program that digitally facilitates, verifies, or enforces the negotiation or performance of a contract without involving third parties. These transactions can be tracked and are irreversible.

Smart Token: A smart token can be considered as a coin that holds the monetary value of other compatible virtual coins.For instance, it works on the same principle as of a central bank that holds foreign currency reserves and converts between them as required.

Smart tokens implement various formulas and algorithms to maintain the rate of conversion between various crypt-o-coins.

The news was revealed on 9th July 2018 and states that the compromised data includes:

* $12.5 million worth of ethereum and
* $1 million worth of Pundi X, a lesser-known crypt-o-currency token.

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