What is Kyber Network ? What is KNC ?
Kyber Network is a decentralized protocol that allows instant conversion and exchange of digital assets in a trustless manner based on Ethereum blockchain. Kyber network fills the gap by serving as an alternative to centralized cryptocurrency exchanges which are prone to security-hacks.
Through the Kyber Network, users should be able to instantaneously convert or exchange any cryptocurrency. We’ll have to take a deeper look to see if they will be able to live up to these claims, what progress has been made so far, and how they differ from competitors such as the 0x Project or Bancor.
Kyber Network Objectives
Kyber Network’s vision is solid, but turning it into a working project is something else entirely. With a main focus on trustless solutions, instant services, and high liquidity, there is a lot of work to be done by the developers.
Recently, centralized exchanges are under constant criticism for their security risks, such as internal fraud and external hacking, and long processing time. In some cases, withdrawing your funds from exchange can take several days.
On the other hand, On-chain decentralized exchanges are slowly becoming more present in the world of cryptocurrency. Even though most of these concepts are still in the early stages of development, there are some solutions on the market already.
Unlike the centralized exchange model, Kyber Network aims to remove all security vulnerabilities from the equation. With no centralized platform, logins, or identity verification documents present, there is no information to be stolen from a centralized entity.
Kyber Network Roles
There are a few different roles in Kyber Network that one should be aware of:
- User – Sends and Receives tokens.
- Reserve Entities – Public or Private entities that bring liquidity to platform. (Involved via Dynamic Reserve Pooling that helps in competitive pricing and higher liquidity).
- Reserve Contributors – Individual that provides capital to the reserve entities as contributions for enhanced liquidity and share profits from the reserve.
- The Reserve Manager – Maintains reserves, calculate conversions rates and feeds them into the network.
- The Kyber Network Operator – Adds/Removes Reserve Entities also responsible for listing and delisting of tokens over the network.
Each of the actors interacts with the smart contract independently in a different way. The users send and receive tokens within a single transaction, without waiting for any response from the reserve or the Kyber Network operator.
The Kyber Network operator is responsible for adding and removing reserves, while the reserve manager determines and feeds the exchange rates to the contract for a fixed period (several seconds basis). The main contract relies on the reserve entity to guarantee high liquidity.
Dynamic Reserve Pool
Kyber Network guarantees high liquidity via the dynamic reserve pool by leveraging the existing reserves in the network. All of the Reserve Entities in the system are included in the pool. Kyber Network allows multiple reserves to co-exist to enable better prices (by eliminating monopoly of reserve), guarantees better liquidity (by utilizing other sources).
When a trade/ conversion request arrives, Kyber Network will fetch the conversion rates from all reserves that can process the request. Kyber Network then selects the best rates and executes the request. Kyber Network guarantees that both the reserves and the users are safe, namely Kyber does not keep any party’s funds and all transactions are atomic.
Kyber Network prevents centralization and enables the low volume token listing by allowing external Reserve Entities. There is a greater possibility that external reserves may accept to store less popular tokens that are not listed on Kyber reserves.
Kyber Network Crystal (KNC) Token
KNC is an ERC20 token that Reserve Managers need to purchase to operate a reserve on the network. In every trade, a small fraction of the trade volume will be paid by the reserve to Kyber Network platform in KNC Token. Each time an exchange occurs, the network charges a small KNC fee to the reserve.
The fees are partly used for operational costs and to reward third-parties who bring trade volume to the network. After the proportional amount of KNC is used on these two things, the remaining tokens are burned (taken out of circulation).
The burning of tokens could potentially increase the appreciation of the remaining KNC tokens as the total supply in circulation reduces.
The company minted a total of 226,000,000 KNC during the ICO and distributed a little over 60% to public participants. There’s currently around 134,000,000 KNC in circulation. This number will fluctuate over the next two years as the founders and advisors’ token supply vests and enters the market.
From Where To Buy Kyber Network Cryptocurrency ? How to Buy KNC Token?
Kyber Network (KNC) token is listed on and can be purchased from the following list of cryptocurrency exchanges :
- Gate.io, and many more
How to Buy Kyber Network (KNC) in India?
Indian Crypto traders and investors can buy KNC coin from the folloiwng list of cryptocurrency exchanges in Indian in exchange of INR:-
Where to store KNC Coins ? Kyber Network Wallet
Since Kyber Network (KNC) is an ERC-20 token, so KNC tokens can be stored in wallets that supports storage of ERC-20 Tokens like:
- MyEtherWallet (MEW),
- Ledger Nano S,
- Trezor, etc
Here is a full list of wallets that are compatible and supports storage of ERC-20 tokens:- Best Wallets To Store Your ERC20 Tokens
Kyber Network recently announced the launch of their Ropsen Testnet wallet. Although just a beta, it’s useful to get a taste of how the official wallet will look and feel once available.
Kyber Network Team
Kyber Network was created by Loi Luu (CEO and Co-Founder), Yaron Velner (CTO and Co-Founder), and Victor Tran (Lead Engineer and Co-Founder).
- Loi Luu is a researcher working on cryptocurrencies, smart contract security and distributed consensus algorithms.
- Yaron Velner is a researcher and a co-founder of the SmartPool project. His research is focused on aspects of game theory incentives in blockchain protocols and formal verification of smart contracts.
- Victor Tran is a senior backend engineer and Linux system administrator. He has experience in developing and building infrastructure for multiple social marketing platforms and advertising networks.
- The team has a well-rounded advisory board with the most notable member being Vitalik Buterin, Ethereum wunderkind.
Kyber Network Useful Links
With rising number of hacks in centralized cryptocurrency exchanges and other risks associated. Decentralized Exchanges (DEX) are surely the future cryptocurrency trading. Kyber Network has the potential to become one of the biggest decentralized exchanges.
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