The Kyber Network is a platform for the instant decentralized exchange of cryptocurrencies, as well as a payment service. The exchange is executed through smart contracts. A network of reserve managers is used to maintain liquidity of transactions and high speed of transfers. According to CEO Loi Lu, in 5–10 years the Kyber Network will become a crypto hybrid of NASDAQ and Visa. Vitalik Buterin has joined the project as an adviser.
On February 11, there occurred a pilot launch of the Kyber Network Mainnet, and testing will last until April. Because of possible malfunctions, access to the platform was granted only to users who got into the whitelist during the ICO.
KNC Tokens...
To obtain the right to profit from spreads in the Kyber network, Kyber Reserve managers must purchase KNC Kyber Network Crystal (KNC) tokens. When the manager receives a profit from the spread, the percentage of this profit is paid to the Kyber network in KNC. The Kyber Network uses KNC to pay its expenses and reward partners. After all payments are made, the remaining KNCs are burned. Thus, with an increase in the amount of reserves and a reduction in the number of tokens due to the burn, the price for KNCs will constantly increase.
Payment System
The Kyber Network is creating an API payment interface that will allow buyers to pay in their chosen cryptocurrencies, and the seller will receive payments in cryptocurrencies they selected as the main ones. For example, if one only has MANA tokens and the seller accepts payment in Ether, then the first can pay in MANA. Using the Kyber technology, the cost is recalculated, and the seller receives an equivalent amount in his account in Ether. To ensure the accuracy of such calculations, a fixed conversion rate will be used, through which users will be able to calculate the amount they will receive when exchanging or paying.
