What is Kyber Network?
Kyber Network is a popular cryptocurrency exchange that allows for the instantaneous exchange and conversion of digital assets, like cryptocurrency tokens and popular cryptocurrencies such as Bitcoin and Ethereum. Users do not need to register to the site as there is no such requirement. It is decentralized in nature and this allows users to control their own funds and private keys through smart contracts. No fees are charged by the network except for gas fees (detailed below). Kyber uses an on-chain system of reserves that bring liquidity to the exchange.
- No funds are stored on the exchange as Kyber uses cold storage.
- Proxy payments allow users to make payments to any individual using any ERC-20 token or cryptocurrency.
- The API of Kyber Network facilitates the conversion of one token to another. This brings ease to the entire process of trading and buying, as the network automatically converts coin. It seems as if the payment has come directly from the sender, whereas it has been modified.
- Kyber Network has high liquidity. This is maintained through its dynamic reserve pool. There are multiple reserve entities on the system which prevent monopolization and keep the competitiveness of exchange rates.
- All trades are operated via the smart contract, through the reserve entity pool manager.
- KNC is also used by reserve managers to pay corresponding fees. Each transaction is charged a fee of around 0.01% and is paid in KNC. The collected fee is then burned by Kyber Network
Kyber Network Roles
Kyber Network has a much wider application than the general needs for token trade and cryptocurrency purchase. There are several different roles played by different entities on the Kyber Network. They are as follows:
- Users – Users send and receive cryptocurrency on Kyber Network.
- Reserve Entities – Reserve Entities bring high liquidity to the network. This is maintained through its dynamic reserve pool. These entities can either be private or public with respect to the network.
- Reserve Contributors – Reserve Contributors are responsible for funding reserve entities. They share profits from the reserve and are public with respect to the network.
- Reserve Manager – The Reserve Manager pays corresponding fees by calculating exchange rates and entering them into the network. They are responsible for maintaining the reserve.
- Kyber Network Operator – The Kyber Network Operator can add or remove reserve entities. The operator is also responsible for controlling which tokens are listed on the site.
For a more indepth guide to using Kyber, click on the links below!
Native Token – What is KNC?
Kyber Network (KNC)
Kyber Network has a native coin called KNC. KNC is affiliated with the Ethereum blockchain and follows the ERC-20 protocol. This essentially makes KNC an ERC-20 token. KNC’s main use is to pay partners of the Kyber Network. These include wallets supporting the currency and blockchain explorers responsible for bringing more traffic to the network. Apart from third-party rewarding, KNC is also used by reserve managers to pay corresponding fees. Each transaction is charged a fee of around 0.01% and is paid in KNC.
After paying for either the operational costs or the rewarding system, the collected fee is then burned by the Kyber Network. KNC is currently trading at $1.57 USD and the total market cap of the coin is approximately 2 Billion USD. An interesting facet of this process is that this makes KNC a token deflationary (as the burning of the token will decrease its circulation supply). Ideally, this should lead to a surge in price, but nothing is guaranteed in today’s market.
Where can I buy KNC?
Unfortunately, there is no available exchange to directly purchase KNC. Because it is an ERC-20 token, it can be traded for an Ethereum derivative. KNC is most popularly traded on OKEx and Binance as a trading pair with Bitcoin. Ethereum can be exchanged for KNC on these platforms as well. CoinMarketCap is pretty useful when choosing the right exchange to trade the coin from.
Visit CoinMarketCap for a full list of exchanges where one can buy KNC!
Where Can You Store KNC?
Kyber Network facilitates the storage of KNC but this should be avoided for security reasons. There are several wallets which support ERTC-20 tokens. The best thing about these tokens is that any wallet which supports the ERC-20 protocol supports KNC. MyEtherWallet is a popular option to store this currency. The web browser extension can be used with Ledger Nano S and Trezor wallets. Hardware wallets represent the safest option and one must consider this.
Featured Image: twitter