What is Kyber Network Crystal (KNC) and How Does it Work?
Kyber Network is one of a growing number of DeFi cryptocurrencies. Its exchange is powered purely by code, a distributed network of software users, and the Ethereum blockchain.
The Kyber team has built three tools designed to run on Ethereum:
1. A protocol for Decentralized Exchange (DEX).
2. An application programming interface (API) for asset conversions.
3. $KNC cryptocurrency, which helps users govern their maintenance and operation.
Together, these tools have already helped launch KyberSwap, a decentralized exchange application that allows users to swap crypto assets without a central order book or operator.
Instead, conversion rates for available assets are built directly into the protocol, meaning users only pay fees in ether (ETH) for executing trades, which then settle on Ethereum.
Kyber Network’s cryptocurrency, the Kyber Network Crystal (KNC), is then used to pay for key operations outside of this exchange, including voting on updates to the software’s rules.
As of July 2020, Kyber Network has seen over $1 billion in total volume from over 1 million user transactions. Users seeking to stay connected to the current development status of Kyber Network can follow its official blog for up-to-date details.
How does Kyber Network work?
To understand how Kyber Network works, it’s important to review the network components that, together, help provide an exchange service.
These include:
Smart Contracts — Provide the infrastructure for tokens to be traded and exchanged.
Reserves — Offer liquidity to the network.
Takers — Execute trades and take liquidity out of the network. (Examples include Dapps, vendors, and wallets.)
Kyber’s Reserve Model
The Kyber Network relies on reserves to provide liquidity.
This means that when a user initiates a trade, the network conducts a search for available reserves to find the best available rate being offered by takers.
There are three main types of reserves that provide takers the ability to convert tokens instantaneously for the most competitive price:
Price Feed Reserves (PFR) — PFRs act as the protocol’s alternative to market makers, using price feeds to calculate conversion rates and store this data in smart contracts. Reserves then refer takers to the smart contract to calculate token conversion rates.
Automated Price Reserves (APR) — APRs serve as liquidity for the network and rely on smart contracts to provide rates for available tokens. All APR transactions are done on the Kyber Network blockchain, and smart contracts are used to store tokens and swap them with other users.
Bridge Reserves — Bridge Reserves are responsible for deepening liquidity by accessing other decentralized exchanges (e.g., Uniswap).
In the past, Kyber Network reserves were required to hold KNC to pay for network fees. However, an upgrade to the network removed that feature, removing friction for the reserves.
Kyber Network collects fees in ETH with a portion of them going to these reserves, which collect them based on the amount of liquidity they provide.
Team
Loi Luu and Victor Tran are cofounders of Kyber Network, a decentralized exchange for cryptocurrencies that raised $52 million from its September 2017 token sale.
Luu holds a Ph.D. in computer science from the National University of Singapore, where he worked on blockchain securities
Where to Store Kyber Network Crystal (KNC)
You can store your KNC in Exodus along with various other cryptocurrencies. Exodus is free and easy to use and can be downloaded to either a desktop or mobile device.
Exodus will then be tied to whichever device it has been downloaded to, which will also be the device you will use to access and manage your crypto assets.
Where to Buy and Sell Kyber Network Crystal (KNC)
You can Buy & Sell Kyber Network Crystal (KNC) by heading over to the Buy Coins page of our website. KNC is available on BC Bitcoin trading against major fiat currencies: GBP and EUR. Buying KNC has never been easier. Simply place your order and provide your wallet address.
Once your payment arrives, KNC will be sent directly to your wallet. If you choose to Sell Kyber Network Crystal (KNC), you can send us the coins and receive a payment to your bank account. Details and valuation can be found on the ‘Sell Coins’ page.
Kyber Network Crystal (KNC) Resources:
Website: https://kyber.network/
Twitter: https://twitter.com/kybernetwork
Disclaimer: The information provided in this article is intended for informational purposes only. It is the readers responsibility to complete their own research and due diligence.
