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’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.
There are a few different roles in Kyber Network that one should be aware of:
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.
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.
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.
Kyber Network (KNC) token is listed on and can be purchased from the following list of cryptocurrency exchanges :
Indian Crypto traders and investors can buy KNC coin from the folloiwng list of cryptocurrency exchanges in Indian in exchange of INR:-
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:
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 was created by Loi Luu (CEO and Co-Founder), Yaron Velner (CTO and Co-Founder), and Victor Tran (Lead Engineer and Co-Founder).
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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