Kyber Network (KNC) Review (UPDATED 2018): A Beginner’s Guide | VKOOL

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Kyber Network is a system that allows people to exchange and convert both cryptocurrencies and tokens at instantaneous speeds. Unlike some other services that do similar actions, Kyber Network uses blockchain technology for maintaining records of all actions.

Since centralized marketplaces and exchanges can be vulnerable to security breaches and have long withdrawal periods (sometimes taking days), decentralized exchanges have been developed in response. But the problem with some of these is that they have high fees because they use an order book (a list containing records of buyers and sellers and their desired prices) that can take a lot of resources to maintain.

Kyber Network operates on this same idea, but doesn't use an order book, allowing transfers to take place faster and cheaper.

Check out our guide below to learn more about how you can get the most out of this service, how it works, and how to get it. And while you're in the market for new altcoins, check out our list of the newest and best coins of 2018.

How Kyber Network Works

Not only does Kyber Network function as a regular exchange, but what singles it out is the way they transfer tokens currencies between individuals. The best part? You don't even need to have the sort of currency the other person wants. Let's look at how it works.

Say you want to pay someone back in Bitcoin, but all you have are CND tokens. You go into the Kyber Network and find out how much the exchange rate is between Bitcoin and CND, and request that whatever amount of Bitcoin you have in CND be sent to the other person. Kyber Network sends the other person Bitcoins, and you pay the amount of CND (plus a fee) to Kyber Network.

Kyber Network's use is divided into different roles:

Users can send and receive tokens. Reserve entities can be either hosted on the system, or by a third party, and can be considered either public or private. Reserve contributors do just that: contribute funds to the Entities, and can share in the profits from the Reserve. A Reserve manager mainly determines exchange rates and gets that information into the network. Lastly, the Kyber Network Operator can remove and add reserve entities, and can determine which tokens are listed on the network. This role will be taken on by individuals in the future, but for right now this last job is done by the Kyber Network team as a whole.

Kyber Network keeps its marketplace active (a good thing) with something called a Dynamic Reserve Pool, containing all reserve entities – with several different entities at the same time, it keeps things mixed up and flowing and encourages competitive exchange rates.

To keep things safe and discourage any funny stuff, Kyber Network automatically flags any exchange rate that seems abnormal somehow, in case there's something unethical going on. They use a transparent fund management model for public reserves.

The Kyber Network Token

The token Kyber Network uses is called Crystal (KNC). Reserve managers use this to pay for reserves to operate. KNC is also used to pay for the costs of operating the network, as well as to give incentive to third parties.

Kyber Network plans to “burn” (destroy) KNC the more it's used, something which will lower the overall volume of KNC available and eventually prop its value up – if things go right.

The History of Kyber Network and Their Team

The founders of Kyber Network all have experience in other parts of crypto (two worked on Smart Pool) and have history working Ethereum-focused projects.

The beta version of Kyber Network came out in August of 2017, with the full version due out early 2018. The full version will start out with you being able to trade between ERC-20 tokens and Ethereum.

Their main competitor is another decentralized exchange service, 0x. While Kyber Network uses blockchain technology for their program, 0x uses an order book instead.

The Trading History of Kyber Network

The price of KNC has gone up and down since its release in September 2017, maintaining a price of around $1. In January its price went down after December's boom, but it's possible that with the release of the full version of the service (and if increasing numbers of people use it) Kyber Network could end up going up in price.

The market is affected by a number of different things, resulting in some coins that are safer to buy than others. Check out out recommendations of 2018's best altcoins for more.

How To Buy KNC

Right now the main places you can get KNC is on Binance and OKEx, mainly with Bitcoin, although you can use Ethereum as well (though it's less used). If you'd rather use dollars to buy KNC, you can get it on GXAX and Gemini.

How to Store KNC

Luckily, since this coin is based on ERC-20 technology, you can store it anywhere that supports ERC-20. That includes MyEtherWallet's online wallet, or you can opt for the hard wallet approach and store them on the Trezor or Ledger Nano.

They will also be releasing their own official wallet called Ropsen Testnet, which is currently in beta.

Kyber Network vs 0x

Both of these services are aimed at providing a decentralized way to exchange crypto, using smart contracts to keep things secure and even. Kyber Network uses a blockchain to accomplish the recording side of things, while 0x opts for an in-house order book (to eliminate network processing time and fees, they say). Both of them have their own tokens which users use to do transactions. 0X doesn't seem to have as much use yet, while Kyber Network are already well on their way to a functioning service.

Kyber Network vs Omisego

Again, here we've got two platforms for decentralized, instantaneous exchange of tokens and cryptocurrencies. Omisego appears to have more features, like a loyalty program, commerce for businesses, and management of assets, while Kyber Network seems focused more on individual peer-to-peer exchange. Omisego is based on Ethereum as well, and has received investment from a number of companies, although Kyber Network has several companies in their corner as well.

Kyber Network vs Ark

Both of these services want to tackle the problem of long wait times for exchanging currencies and tokens. The Ark is a wallet program that doesn't require you to download the whole blockchain, while it's unclear whether Kyber Network requires you to do this same thing or not. Ark tokens available for purchase on more platforms, it seems, including Binance, Bittrex, and Upbit, and claims collaborations with esteemed groups like Forbes, Coincentral, and Yahoo Finance. Kyber Network appears to be in an earlier stage of development than Ark.

Frequently Asked Questions

  1. Do you know the price of Kyber Network?
    The Kyber Network Crystal has gone up and down in price since December, but it's been hovering around $3.50.
  2. What is the Kyber Network coin?
    It's called Crystal (KNC) and is used for transactions using the service.
  3. Is Kyber Network on Reddit??
    There's an active community on Reddit about Kyber Network.
  4. What was the Kyber Network ICO price?
    It seems to have ended up around $1 initially, before going down.
  5. What the price prediction for Kyber Network?
    Some say that Kyber Network's price will go up when they release the full version of the service, and as more people begin to use it.
  6. Is there a Kyber token?
    Yes, that's the Kyber Network Crystal (KNC).
  7. Is there a review of Kyber Network?
    You can read reviews of Kyber Network on Medium.
  8. Is there a Kyber Network Twitter?
    Yes, they have a Twitter that offers updates on their service.
  9. Can I buy Kyber Network on Bittrex?
    No, right now it doesn't look like it's traded there.
  10. How do I buy KNC?
    You can buy it with crypto on a number of exchanges like Binance, KuCoin, and Gate.io.
  11. Is Kyber Network an exchange?
    Yes, but in addition to being an exchange, it's a service that allows people to pay individuals in whatever currency they have by converting it automatically to what the receiver wants to receive in.

Conclusion

The world of crypto is becoming populated with more and more companies that want to use technology to fill in the gaps between cryptocurrencies, token, fiat currency, individuals, and businesses. By trying to decentralize things and use blockchain technology to reduce exchange times, as well as offering services that make paying others more convenient by automatically converting to other currencies at will, Kyber Network is a part of a newer movement of companies that are creating solutions to things that are necessary to solve, as things will only get more complex as cryptocurrencies are adopted by more people.

Even though they're only in beta, they've shown that they have a clear goal in mind and have been meeting expectations up until now, and so it will be interesting to see how things shape up for Kyber Network in the future.

While you're waiting for Kyber Network to develop, you might want to consider checking out some of these other great coins that are looking to change the crypto landscape in 2018.

Peter Lehmann

Peter is a blockchain investor and cryptocurrency writer at Vkool.com. Since 2014 Peter has advised blockchain startups and ICOs on content marketing, strategy and business development.

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