Kyber Network

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KyberNetwork Crystal (KNC) is a token of the KyberNetwork platform – a decentralized service for an instant exchange of cryptocurrency assets.

Kyber network Project website

Kyber Network ICO start date: 2017-09-17

Kyber Network Price Online From CoinMarketCap

Kyber Network (KNC) is a new system which allows the exchange and conversion of digital assets. They provide rich payment APIs and a new contract wallet that allow anyone to seamlessly receive payments from any token.Users can also mitigate the risks of price fluctuations in the cryptocurrency world with our derivative trading.

More information in the project White Paper: Kyber Network White Paper

History of origin[edit]

The idea of the Kyber Network creation came to the chief director of the project, Loi Luu, during his work on the problem of the “verifier’s dilemma”[1] in such projects as TrueBi and Smart Pool, and Oyente[2]. In some interviews, Luu calls his project the “decentralized version of ShapeShift"[3].

ICO[edit]

On August 7th, 2017 a minimally viable product Kyber Network was posted: a sample of a smart contract and an electronic wallet (the prototype code of the reserve control board is kept secret by the developers for now)[4].

Kyber Network pursues the Know Your Customer policy[5] , which is why the ICO process was carried out in several steps:

1. August 18th-25th. Creation of the Whitelist. The Kyber community gathered over 25 million people on Slack, from the list of confirmed users; a preliminary list of those who want to buy KNC was created[6]. The users of KakaoTalk, Telegram (Korean) and WeChat could also get in the list. The Whitelist was closed 3 days prematurely due to an excessive number of those who wanted to buy a token[7].

2. August 31st – September 10th. Registration. Anyone from the Whitelist could register to buy kyber network coins.

3. September 15th – 17th. Sale of tokens.

4. September 27th. Sale of KNC on the Binance exchange[8].

As a result of the ICO[9] it was managed to reach the funding limit established on the level of 200 000 ETH, which makes out $60 million (with the Ethereum rate of $300)[10]. As of September 2017, it is one of three largest ICOs of 2017[11].

Special Characteristics[edit]

The infrastructure of Kyber Network allows exchanging cryptocurrencies without the participation of exchanges: the transactions are carried out with the help of smart contracts. It became possible thanks to the creation of a token reserve. When a KyberNetwork user exchanges one asset to another, a purchase or sale of a token from the reserve takes place.

To ensure the work of the reserves, the following components are included in KyberNetwork:

1. Reserve operator. Carries out the listing and delisting of the exchange pairs of Kyber Network coins.

2. Depositor. Provides Kyber Network tokens into the reserve.

  1. Reserve executive. Establishes the exchange rate, controls the reserve’s fill rate[12].

Distribution of tokens[edit]

The maximum amount of KNC is limited from above - 226 000 000.

After the Kyber Network ICO, the coins are distributed in the following way:

  • 61.06% owned by the ICO participants
  • 19.47% owned by the company’s founders or consultants
  • 19.47% remain for the company’s internal use[13]

KyberNetwork offers to use tokens in two ways:

1. As the platform’s currency. A reserve executive can pay with it for the depositor’s services.

2. As a reward for various partners who help generating the trading activity on Kyber.

The cost of KNC will grow in time due to a range of reasons:

1. “ Burning of tokens”. KyberNetwork tokens left after the payment to auxiliary partners will be eliminated[14]. Six million tokens will be annihilated[15].

  • The share of the token owners in the project will grow (on the analogy of the share redemption on the stock market.
  • The cost of KNC will increase, as a token will become a rare item.

2. Law of demand. The increase of the number of users and volume of transactions leads to the growth of demand for KNC.

Thus, even with the unchanged market capitalization of Kyber, the cost of the KyberNetwork tokens shall grow[16].

Technical characteristics[edit]

  • “On-chain” protocol. All transactions will be recorded in the blockchain of Ethereum.
  • Instant liquidity is ensured by the creation of the token reserve[17]:
  • KyberNetwork itself may become the first executive of the coin reserve.
  • Not one reserve, but a whole network is used.
  • No time to confirm transactions is required.
  • Maximum speed is 10-20 trade transactions per second.
  • To carry out one trade operation, KyberNetwork needs only one transaction[18].

Specifics of use[edit]

The general use of KyberNetwork includes:

1. Exchange of tokens

  • Smart contracts. All transactions are carried out with the help of smart contracts; there are no funds on the exchange.
  • Fixed conversion coefficient: the users know the conversion coefficient before carrying out a transaction. If the exchange conditions are suitable for a user, the smart contract is brought into action.

2. Payment service. Kyber allows giving the address at once, to which the funds will come after the conversion.

3. Proxy payments. Kyber smart contracts can send converted funds to the specified address on behalf of the wallet’s owner, i.e. as if tokens were sent by the owner himself, not KN[19]. In this way, it is possible to participate in the ICO.

Perspectives[edit]

The project managed to enlist the support of the community representatives (for example, Vitalik Buterin acted as a consultant)[20] and carry out a successful ICO.

The road map of Kyber supposes the following stages:

  • 1st quarter of 2018: Launch, support of the token and ETH trade.
  • 2nd quarter of 2018: Start of the trade of arbitrary token pairs.
  • 3rd quarter of 2018: Trade with advanced financial tools (options, forward contracts).
  • Beginning of 2019: Start of the support of inter-network trades[21].

As the main competitor of Kyber, Bancor, 0xProject, SwapTech, EtherDelta can be mentioned[22]. The differences of KN from the listed competitors are described in the project’s Whitepaper[23].

Social media[edit]

Kyber Network Telegram

Kyber Network Twitter

Kyber Network Blog

Kyber Network Reddit

See also[edit]

Resources[edit]

Kyber Network Platform Project website

Kyber Network Price Prediction

Kyber Network price and market state on Coin360

Notes[edit]

  1. Luu L. et al. SCP: A Computationally-Scalable Byzantine Consensus Protocol For Blockchains //IACR Cryptology ePrint Archive. – 2015. – Т. 2015. – С. 1168.
  2. https://www.youtube.com/watch?v=FrC67cv0MKA
  3. Kyber Network Exchange
  4. https://blog.kyber.network/kybernetwork-mvp-release-e8440a79346f
  5. kyber network ico
  6. https://blog.kyber.network/updates-kybernetwork-public-token-sale-825090194a58
  7. http://www.the-blockchain.com/2017/08/20/kybernetwork-close-ico-whitelist-early-due-massive-early-registration/
  8. [http://mmgp.ru/showthread.php?t=538646
  9. https://tokenmarket.net/blockchain/ethereum/assets/kyber-network/
  10. http://cryptowiki.ru/article/vitalik-byterin-otdast-sredstva-polychennye-ot-omisego-i-kyber-network-nachinaushim-proektam.html
  11. http://itportal.ru/science/economy/sovremennye-formy-kraudfandinga-i-k/
  12. https://kyber.network/assets/KyberNetworkWhitepaper.pdf
  13. https://blog.kyber.network/kyber-network-crystals-to-be-tradeable-on-binance-d42a1533472f
  14. https://www.reddit.com/r/kybernetwork/comments/73lidh/what_is_the_use_of_the_kyber_network_crystal/
  15. https://blog.kyber.network/kyber-network-crystals-to-be-tradeable-on-binance-d42a1533472f
  16. https://crushcrypto.com/analysis-of-kyber/
  17. How to buy Kyber Network
  18. http://www.ibtimes.co.uk/crypto-exchange-kybernetwork-promises-decentralised-execution-instant-trades-1629868
  19. https://blog.kyber.network/kybernetwork-smart-contracts-explained-2acc5a304720
  20. https://bits.media/news/vitalik-buterin-protiv-ico-seti-raiden/
  21. http://inp.one/cryptoworld/kriptovalyuta-kyber-network-knc-obzor
  22. https://www.reddit.com/r/0xProject/comments/6yl8d8/why_choose_0xproject_over_kyber_network/
  23. https://kyber.network/assets/KyberNetworkWhitepaper.pdf


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