Heard about the Kyber Network quite often, but want to dig more into it to understand it fully? Well, you have landed yourself in the right place. Without wasting much time, let us walk you through all that you need to know about the Kyber Network and the Network Crystal (KNC) Token.
Understanding Kyber Network-
Kyber Network is an Ethereum blockchain platform. It is a Singapore based project which is created by Co-founders- Loi Luu, Yaron Velner, and Victor Tran. Kyber Network is peer to peer decentralized cryptocurrency asset exchange. It holds deep reserve pool cryptos. This in return offers a great network that has great liquidity that can conduct fast transactions at very low rates. This exchange has its token with the name of ‘Kyber Network Crystal’ (KNC.) It is a proprietary ERC-20 cryptocurrency token.
If we compare centralized and decentralized crypto exchanges, sure there are big names such as Binance and Coinbase that have made a big impact and earned good business through the centralized exchange system. As per cryptobriefing.com, in the year 2017 and 2018, these exchanges earned around 1 Billion U.S. Dollars in profits. But nevertheless, there are issues with the centralized system too. For instance, there are issues around security levels, the costs of crypto exchanges, and postponing of the cash and so on. Some unfortunate cases rob the trust of an investor — for example, Mt. Gox’s infamous vanishing of 850,000 BTC in 2014. Or the recent example from this year only proves the issue more clearly- QuadrigaCX case where 145 U.S Dollars worth crypto assets were frozen in the wallet of the exchange.
Therefore turning to decentralized exchanges becomes a natural inclination. This surfaced decentralized exchanges into prominences such as- Zero-X (0X), IDEX, OAX, and OasisDex. Market experts predict that the future of crypto exchanges will be in decentralized exchanges as it gives back the power to the customers, investors, and traders.
Now when we again look back at Kyber Networks, its promise of more liquidity and ‘bookless’ trade gives it a positive image. Its performance and sticking to its aims throughout 2018 also builds up trust in its abilities. The company’s advisory board has great minds like Ethereum’s Vitalik Buterin.
On this platform, you can also get Initial Exchange Offering IEO. IEO helps in facilitating the Initial Coin Offerings. ICOs was a great buzz in 2018, and they continue their shimmer in this year too. For evidence, look at the public token sale of BitTorrent BTT, which gave it 7.2 Million U.S. Dollars.
With all these tall promises and of course the good performance in the last year and till date, have arrived at a point where we can vouch at the viability of the Kyber Network and by extension its token- KNC? Let’s further dig in!
Looking at Kyber Network Crystal (KNC)-
The Kyber Network’s Token has a total market supply of 215,250,053 KNC out of which 157,166,004 KNC are in circulation as of early this month. The all-time high f this token has been 5.32 U.S. Dollars, as recorded on 9th Jan.
During the ICO Token sale, overall 226,000,000 KNC were minted. The token sale ended on 16th September 2017. The ICO token minting reaped 52 Million U.S. Dollar worth of USD, ETH, and BTC. According to cryptobiefing.com- KNC cannot be mined. Its place, it is rather awarded to Reserve Entities, Reserve Contributors, Reserve Managers, and The Kyber Network Operator. What they mean by Reverse Managers is that KNC tokens are utilized to manage network reserves and pay off any trade-related costs. Part of the transaction fees is used for expenses related to the operations, and the other part is utilized in participation rewards. The remaining part gets burned, as per the site.
KNC can also be found on other crypto exchanges traded mostly with ETH, BTC, XRP, and KRW. It features on exchanges such as- Binance, DragonEX, Bitrue, Coineal, and 55 Global Markets. Since the token is compatible with ERC 20, therefore it can be stored on the crypt wallets that are compatible with ERC 20. These wallets include including MyEtherWallet, TrustWallet, and hardware wallets by Trezor among others.
The Uniqueness of Kyber Network-
The obvious difference that sets it apart from the other crypto exchanges is that it is a decentralized exchange. The other factor that gives it the unique factor is that it records the crypto exchanges on that chain. It deals with the order book off the chain. Other decentralized exchanges such 0x, for instance, maintains both the exchanges and the order book off the chain. Further, Kyber Network offer four kinds of services, they are-
- Reserve Entities. They offer liquid assets. This feature makes sure that there is a smooth exchange of tokens on the network. It allows two kinds of entities registry, e. Public and the private.
- Reserve Contributors- The Reserve contributors use in common with others in its reserve profits, only when the Reserve Entity is public.
- Reserve Managers- They are the Kyber network’s accountant. They are responsible for an estimate and compute the rates for the exchange, and they maintain the reserve.
- Kyber Network Operator- This feature looks after the operations of the Kyber Network. It checks, verifies and passes the Reserve Entities, it lists the tokens for the exchange, and it also makes sure that all the operations of the Kyber network are working in a secure environment.
Every time an exchange is created on the Kyber Network, there is also a creation of a Smart Contract. The above mentioned four roles verify and quality- check the various points of the smart contract for quality service to be delivered. These reserves bring out the best possible rates for the desired crypto tokens. In situations when the prices do not match a certain threshold, the node goes for verification in the Kyber system. All these features give a sense of the solid promise of features and performance.
Besides the excellent inner management of the platform, Kyber Network has created a strong partnership connection with businesses. Further Kyber Networks offer its customers with GUI which is called ‘Kyber Swap.’ Let us check out this feature too, here-
So what is KyberSwap?
It is a mobile exchange application which is based on the web. Through this app, the consumer gets the power to ‘swap’ tokens instead of another. This app also allows the user to transfer their tokens to another address on the chain. With a good variety of useful tools, this app also gives you an exhaustive analysis of the price. Kyber Networks offer this feature-rich app as a separate dApp (decentralized application.)
The multi-feature rich Kyber Networks holds a lot of potentials to rue the crypto market. It can lead the exchanges. When asked the team Kyber Networks, they explained their goal for this year. Their goal is to get in more and smarter contract networks, which will springboard the company into strong decentralized governance. The ultimate aim is to build an ecosystem of reserves.
Also, the Kyber Network dApp ecosystem has also developed ‘Order Book Reserve’ and the ‘Automated Price Reserve. Further, the onboarding of the new dApps and cryptocurrencies become way smother with Kyber Network’s ‘Kyber Trading API.’ This gives a boost to the liquidity all across the network of several crypto exchanges.
Kyber Network has partnered with Wanchain, Gifto, Icon, Coinduck, and Enigma, and has got investments from Hyperchain Capital, Pantera, Fenbushi Capital, Kenetic Capital, FBG, Danhua Capital, Hashed, and Signum Capital, as per ‘cryptobriefing.com.’
Kyber Network does not want to rest on the laurels; rather the team is busy inventing more and more ways to improve liquidity, and more and more useful features to reign the market and create a strong decentralized governance
The current market position of Kyber Network and KNC-
As on 12th of February, Kyber Network and KNC are currently trading at 2.9 percent against the U.S. Dollar. If we have a look at the weekly performance of the Kyber Network, then it has traded up 12.7 percent against the U.S. Dollar.
The total market capitalization of the Kyber Network is 23.26 million U.S. Dollars. In the last 24 hours around, 3.55 million U.S. Dollars worth of Kyber Network was traded on the exchanges.
The Kyber Network Token- KNC can be purchased for an approx. The prize of 0.15 U.S. Dollar or 0.00003713 BTC. It is currently available at crypto exchanges that include COSS, OKEx, Kucoin, and Ethfinex.