One of the hardest processes within the blockchain universe is transactions between different tokens. Although it seems almost simple, it is a complex problem that involves several variables, such as incompatibility, how to check if the payment was confirmed, price feeds, the existence of hundreds of different tokens, etc. Kyber Network came to make the decentralized exchange easier, without interruptions between projects and ecosystems, revolutionizing the way blockchain is looked upon.
How Does Kyber Network Work?
Kyber Network is a fully on-chain liquidity protocol that enables the decentralized exchange of cryptocurrencies in any application, without a need for any middleman.
It also does integrate liquidity providers (Reserves) into one single endpoint for takers (DApps or end users) to make access easier. When a taker requests a trade, the protocol scans the entire network to find the reserve with the best price and take liquidity from that reserve.
It is easy to understand why Kyber became the most used DeFi protocol last year (2019). Integrating a large variety of liquidity providers makes Kyber uniquely capable of supporting sophisticated schemes and catering to the various needs of DApps and financial institutions.
Get started with Kyber Network here!
Who May Benefit More Of Kyber Network?
This video explains why Kyber Network has tremendous potential in the days to come.
The protocol’s success was not without reason. Kyber Network has a permissionless open-source protocol that can be used by any level of developer, whether beginner or advanced.
Based mainly on Ethereum, some knowledge on Solitidy is required, but nothing that sounds like rocket science.
Advanced developers that want to build any kind of DeFi App that involves ER-20 token swaps, payments, rebalancing, or liquidation should choose Kyber. For users that just want to trade or manage ETH and Ethereum tokens, Kyber has KyberSwap, their in-house token swap service that makes everything easier and safer.
Blockchain Future Is Now
Innovative solutions keep happening, and the team has a lot of work in the short term. News is there is an upcoming Katalyst protocol upgrade, including the launch of the KyberDAO and a new KNC token model.
Further reading on the future: Web3 – The Future Of The Internet
This brand-new post-upgrade Katalyst will bring more benefits for stakeholders and DeFi. One of the main examples is that reserves will no longer need to hold a KNC balance for fees, removing a major friction point, and there will be rebates for top-performing reserves.
Additionally, integrated DApps will be able to set their custom fees and create business models, while KNC holders can stake their KNC in the KyberDAO to participate in governance and receive rewards.
As never was done before, the KNC community will be able to vote on key parameters, affecting the direction of the Kyber protocol itself.
Who Is Behind The Project?
Loi Luu, CEO, and co-founder of Kyber Network was interested in programming and math since his childhood years. Later he decided to start undergraduate studies in Computer Science, studying at Vietnam National University in Hanoi. After this, he pursued a Ph.D. at Singapore National University. It was then that he learned about blockchain and became instantly fascinated.
Then he reunited with some partners and started some very important projects, such as Oyente (first open-source smart contract tool), Elastico (sharding protocol for public blockchains), and SmartPool (decentralized PoW mining pool using smart contracts) before they finally established Kyber Network in 2017.
Kyber Network is an on-chain liquidity protocol that empowers decentralized applications, including exchanges, lending protocols, funds, payments wallets, etc. This aims to remove the key hurdles that hinder the adoption of DeFi technologies, giving token holders equal access to DApps and services, no matter what kind of token they hold.
The main goal of the personnel behind the idea, since the beginning, was to facilitate seamless decentralized exchange between different projects and ecosystems. As the popularity of Kyber Network increases every day, anyone can say the idea took off and now is shooting for the stars.