What is Kyber Network Crystal v2 (KNC)?

Kyber Network Crystal v2 (KNC) is one of several DeFi cryptocurrencies that allows consumers to trade their crypto assets on regular exchanges. Instead of being run by a single corporation, it is run by a distributed network of software users powered by Ethereum.

This cryptocurrency has established a decentralized exchange protocol and an API for asset conversion. They also have the KNC coin, allowing users to manage their assets and operations on Ethereum.

Furthermore, the platform features a technology known as KyberSwap. With KyberSwap, individuals on the platform can trade without a mechanism that oversees all.

Users exclusively pay ether (ETH) fees for conducting deals that settle on Ethereum. They don’t need to rely on external conversion rates for accessible assets. They can then use the network’s coin as a means of payment outside this exchange.

Who Created Kyber Network Crystal v2 (KNC)?

Kyber Network Crystal v2 is the creation of three individuals: Victor Tran, Yaron Velner, and Loi Luu.

A KNC initial coin offering by Kyber raised 200,000 ETH (about $50 million) at the time. It generated two hundred twenty-six million KNC.

The Kyber Network burnt more than 10 million KNC tokens in October 2017, reducing the total supply to 215 million. In February 2018, the program was made available on the Ethereum blockchain.

How Does Kyber Network Crystal v2 (KNC) Work?

As of December 2020, the Kyber Network Crystal v2 became solely implemented on Ethereum. For example, token holders, market makers, and decentralized exchanges contribute to a single pool of liquidity on the network. Sellers, dApps, and crypto-wallets have access to Kyber Network’s fast token exchange feature, eliminating the need for third parties.

A token always represents the underlying asset in trading. The Ethereum version of the protocol presently uses ETH as this token. Hence, exchange between tokens can only work with Eth present.

Take BAT (Brave’s Basic Attention Token) as an example of a cryptocurrency that can be exchanged for ETH. The Kyber Network (KNC) smart contract receives your ETH payment in this transaction.

It then searches through all its reserves to find the most advantageous ETH/BAT conversion rate for the user’s benefit. ETH is then transferred to the reserve at a rate that is the optimum for exchanging ETH for BAT. Finally, you’ll receive BAT from this reserve.

All transactions on Kyber Network are either completed in full or retracted immediately after being resolved on the blockchain. Furthermore, you may query the smart contracts to see the current exchange rates given by reserves.

There are various applications for the Kyber Network in dApps, DeFi platforms like Nexo, and crypto-wallets. The dApp’s users may use tokens supported by the Kyber Network. Also, the dApp can be paid in the token of its choosing, thanks to these capabilities.

Is Kyber Network Crystal v2 (KNC) a Good Investment?

The Kyber Network’s goal of providing an alternative to more traditional, centralized exchange platforms may entice potential users. Kyber has already been incorporated into several wallets, allowing users to trade cryptocurrencies within their own environment.

Some dApps have even used Kyber’s API to speed up transaction processing. Decentraland, a popular virtual reality platform, and Edcon, an Ethereum development conference, are only two instances of this trend. There may be a market for KNC though it depends mainly on investors.