Caviar

Kyber Network is a platform for converting and exchanging digital assets. The platform provides users with rich payment APIs in addition to the new contract wallet, which will let you receive payments via any token no matter who you are. Additionally, Kyber has derivative trading to let users minimize the risk of cryptocurrency price fluctuations.

Kyber Network Guide

Who Is Behind Kyber Network?

Loi Luu, the CEO and co-founder, is a researcher specializing in cryptocurrencies, distributed consensus algorithms, and smart contract security. The other co-founder, Yaron Velner, is also the CTO and has a Ph.D. in computer science from Tel Aviv University with a focus on game theory incentives within blockchain protocols plus formal verification for smart contracts. The final co-founder, Victor Tran, is also the lead engineer as well as a Linux system administrator and senior backend engineer.

Kyber Team

The rest of the team includes Executive Advisor Wong Lee Hong and Vitalik Buterin, Leng Hoe Lon, Chionh Chye Kit, Kenneth Oh, Prateek Saxena, and Pandia Jiang, all of whom are advisors.

Why Was There a Need for Kyber?

The team behind Kyber created this platform in response to multiple factors, including the risks of centralization. While cryptocurrencies are decentralized and trustless, most exchanges are centralized, something Kyber addresses with its decentralized nature. The existing decentralized exchanges come with their own problems, such as a vulnerability to external hacking or manipulation. That vulnerability is a byproduct of the delay between when the order is initially created and accepted within a block. By providing instant transfers, Kyber is able to eliminate this vulnerability.

The lack of instant exchanges was another issue the team behind Kyber wanted to address, both in terms of the vulnerability mentioned above and simple user convenience. It also addresses the issues related to the sheer number of digital assets and the difficulty with converting between them.

What Are the Main Components of Kyber?

There are four major components in the Kyber Network that allow for its functionality. The smart contracts include the main contract that lets users and reserve managers enter the system. The user’s wallet has a friendly interface and multiple integrations available. The reserve manager portal shows managers’ performance and network stats, along with various algorithms and strategies that help with pricing and re-balancing. Finally, the operator dashboard lets an operator manage the system, including adding and removing reserves and changing network parameters.

What Does Kyber Network Let Users Do?

KyberNetwork offers a range of functions. Users can exchange or convert tokens, getting the cryptocurrencies they want from the ones already in their wallet. They can also use their own token to pay anyone and get payments in other cryptocurrencies, like Ether and Bitcoin. The ability to hedge against price fluctuations gives KyberNetwork an advantage over other similar platforms already available.

What Are Some Key Applications of Kyber Network?

The possibilities for using Kyber Network are as limitless as your creativity, but many users will take advantage of it for exchanging tokens. Because of Kyber Network’s ability to complete these exchanges instantly and securely, there is no need to look elsewhere for an exchange.

Kyber Network also offers derivatives so there is less concern about price fluctuations and a reliable way to get dividends from DAOs. The platform allows for both proxy and cross-chain payments. You can use Kyber Network to get payments from various cryptocurrencies, including Bitcoin, receiving them in Ether, with this cross-chain payment functionality saving time and effort. Meanwhile, the proxy payments let you pay anyone in the token of your choice with them receiving in another token. Kyber Network takes care of the conversion so you do not need to do an extra step and can just send the payment.

What Are the Most Important Properties of the Kyber Network?

Kyber Network prides itself on being secure and trustless, since every single operation occurs with smart contracts. Because of this, there is no need to trust the platform, as it never holds the money of users. Kyber also delivers instant trades with no need to wait for a confirmation or complete a deposit. Instead, users get their tokens as soon as the transaction enters the blockchain, which everyone familiar with crypto knows is essentially instantaneous.

The platform is able to deliver instant trading capabilities because of its high reserve of all tokens, which allows for liquidity and means Kyber does not have to work to get your tokens following a trade; the ones you traded for are already in the reserve. Kyber is also highly compatible, working with the current smart contracts so you do not need to change anything to start using the platform.

How Does KyberNetwork Stand Out from Other Decentralized Exchanges?

While there are multiple other decentralized exchanges focusing on cryptocurrency, KyberNetwork fills a unique need. It is the very first that provides on-chain exchanges that are instant and trustless complete with high liquidity. Existing exchanges lack at least one of these features.

Exchanges

Some similar platforms are Bancor and 0x, each of which takes a different approach from Kyber. Bancor relies on a fixed formula when determining token prices, but KyberNetwork leaves this up to reserve managers. By contrast, 0x uses offline channels for matching buyers and sellers, while Kyber does everything on the chain and instantly. While 0x books the order off the chain but completes the settlement on the chain, but Kyber does everything on the chain, improving liquidity and the speed of transactions.

How to Buy Kyber Network Token KNC

You are not able to purchase KNC with “Fiat” currency so you will need to first purchase another currency – the easiest to buy are Bitcoin or Ethereum which you can do at Coinbase using a bank transfer or debit / credit card purchase and then swap that for KNC at an exchange such as Binance.

Register at Coinbase

For first time buyers of crypto currency, we recommend that you use Coinbase to make your first purchase – its easy to use, fully regulated by the US government so you know it is one of the safest and most reputable places to purchase cryptocurrency from. Coinbase offers the ability to purchase Bitcoin, Litecoin and Ethereum with a credit or debit card or by sending a bank transfer. The fees are higher for cards but you will receive your currency instantly.

You will have to carry out some identity verification when signing up as they have to adhere to strict financial guidelines. Make sure you use our link to signup you will be credited with $10 in free bitcoin when you make your first purchase of $100.

Coinbase Website

To get started, click the “Sign up” button where you will be taken to a registration form where you will need to enter your name, email and choose a password.

Purchase Ethereum

For this guide, we will be purchasing Ethereum to swap for our target cryptocurrency. The reason for this is that it has far cheaper fees than bitcoin for sending and the transaction also happens a lot faster. So in Coinbase, visit the “Buy / Sell” tab at the top, select “Ethereum”, choose your payment method and enter the amount you wish to purchase – you can either enter a US Dollar amount or a number of Ether.

Buy Etherum

You will then be asked to confirm your transaction, if paying with a card you might have to complete a verification with your card provider. Once that’s complete, your Ethererum will be added to your account.

Purchase XLM at Binance or Kucoin

You can now send your Ether over to Binance to make your purchase of KNC, take a look at our review of Binance here to see how to signup and purchase on their exchange.

Binance Wallets

KNC is also available to purchase on the Kucoin Exchange, take a look at our guide here to find out how to use this exchange.

Kucoin

What Does the Roadmap Show for the Future?

Back in August 2017, Kyber was launched on the testnet, and the first mainnet launch will occur during the first quarter of 2018. At this point, it will support trading between ETH and tokens. By the second quarter, Kyber will support the trading of arbitrary token pairs. The features will continue in quarter three with the addition of support for trading advanced financial instruments. By early 2019, the platform will support trading of a cross-chain nature.

Roadmap

Conclusion

Kyber fills a gap in the existing system of cryptocurrency exchanges with its decentralized nature and instant trades. As the number of cryptocurrencies available grows, so will the need for systems like this, of which Kyber is a pioneer. The already launched version is useful, and as more features arrive, including support for arbitrary token pairs, it will become even more helpful for those with cryptocurrency investments.

Useful Links

Posted by Oliver Dale

Founder of Kooc Media, A UK-Based Online Media Company. Designer, WordPress and Crypto Enthusiast.

Leave a reply

Your email address will not be published. Required fields are marked *