Chief's Open-Source Overviews | Kyber Network

This Chief's Open-Source Overviews analyzes the major benefits and advantages of the open-source blockchain protocol, Kyber Network (KNC), with the goal of helping provide value to the community about this open-source blockchain network.

Kyber Network is an open-source protocol that helps facilitate the fast exchange of cryptocurrencies.

Currently priced at $1.82, KNC ranks #73 in terms of market capitalization of all cryptocurrencies and tokens.

This guide will explain four major reasons to pick Kyber Network (KNC) out of all cryptocurrencies & blockchains:

In the current crypto landscape, some issues are arising with both centralized and decentralized exchanges in the form of security problems, Know-Your-Customer requirements, and low liquidity.

The Kyber Network aims to solve those problems by offering their version of a "decentralized" exchange.

With the Kyber Network exchange, you do not need worry about your funds getting hacked or having any log-in information.

When using the Kyber Network exchange, you send your funds to the Kyber Network contract and the contract will return the associated amount of crypto you requested.

The Kyber Network never holds your funds so you do not have to worry about lost funds due to security issues like hacking.

This is a great advantage the Kyber Network offers over other exchanges and will attract the security conscious user, business, and/or organization to use the Kyber exchange.

You also do not have to use any identification or log-in information to make trades on the exchange.

This anonymity is a great benefit of the Kyber Network and will attract the volumes of currency that is traded by anonymity-focused individuals, businesses, and organizations.

Besides security and anoymity, the exchange has other benefits such as increased liquidity and fast order executions.

To ensure liquidity, the Kyber Network uses a dynamic reserve pool which is a combination of different entities with the crypto necessary for the transactions. Since the conversion rate and crypto comes from the reserve pool, consistent liquidity is maintained on the network. This strengthens the long-term sustainability and success rate of the Kyber network.

In recap, the Kyber Network's exchange comes with many benefits such as increased security, anonymity, and liquidity which will attract individuals, businesses, and organizations to the network because of these exchange benefits.

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One major benefit to the Kyber Network is that it facilitates the fast exchange of one cryptocurrency for another between parties.

Usually if one party want a certain cryptocurrency for payment that is the cryptocurrency that the sender has to send. The sender cannot choose their desired crypto to send.

With the Kyber Network, users, businesses, and organizations can send cryptocurrency to each other and the Kyber Network converts it to the desired cryptocurrency.

So for example if Jim owes Sarah 0.2 ETH, Jim can send any crypto whether it be BTS, ZEC, or BTC and the Kyber Network will convert bob's sent crypto into Sarah's desired crypto of choice ETH.

Especially with how many cryptos and tokens currently, the ability to send any crypto and it be quickly converted to the final parties desired crypto is a tremendous advantage for the Kyber Network.

It increases the use cases of some cryptos because now they can be used as value in transactions. This will attract the communities surrounding these tokens to use the Kyber Network increasing the demand for the network and KNC.

In recap, the ability to send one crypto and seamlessly convert it to the other party's desired crypto is a feature that brings immense value to the Kyber Network and positions it nicely in the crypto landscape.

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Not only does the Kyber Network have an exchange but it also has Payment APIs for businesses.

These payment APIs allow businesses to use the Kyber Network to accept all different types of cryptocurrency for payment all while converting it to the business owners desired currency.

So if Jim's Burgers really loves STEEM yet still wants to empower a lot of cryptos to be used at his store, the store can use the Kyber Network to facilitate that process. Any incoming payment in crypto would have conversion rate to STEEM and then would be converted from BTC, ETH, or whatever crypto is incoming to STEEM for Jim.

This serves as a great advantage to the Kyber Network as it will attract businesses and organizations who want to accept all types of crypto but don't want to worry about the hassle of conversion.

This will also serve as another way Kyber Network is empowering these communities surrounding cryptos. Now these cryptos can be used as payment in goods and services because of the fast, exchange nature of the Kyber Network protocol.

In recap, the Kyber Network's ability to allow businesses to accept different types of cryptocurrency and seamlessly convert them into a desired cryptocurrency for payment is a important distinguishing difference the Kyber Network offers and will lead to more larger scale adoption of the Kyber Network by businesses and organizations.

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One of the attributes of cryptocurrency is the volatility of price fluctiations.

The Kyber Network noticed an opportunity associated with these price fluctuations and offered a solution to users, businesses, and organizations.

With the Kyber Network, you have the opportunity to implement advanced financial services such as derivatives in the form of options and forward contracts.

Option and forward contracts allow you to hedge your crypto positions and trades to lower the risk due to price fluctuations.

This is a huge for financial companies and firms along side financial savvy individuals and organizations who use options and forward contracts to hedge their stock and bond positions.

Now being able to do this with cryptocurrency on the Kyber network is a natural progression for this market and with this market comes volumes of currency.

Besides helping users manage risk, this serves as a great benefit and will attract these large volumes to the Kyber Network for trading helping long-term growth and sustainability.

In recap, the ability to deploy advanced financial services on the Kyber Network will help attract users, businesses, and organizations who integrate these risk strategies into their actions.

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So why pick Kyber Network out of all the cryptocurrencies and blockchains?

It:

• has an exchange with benefits,
• facilitates the exchange of crypto between parties,
• deploys payment APIs for businesses, and
• has the capacity to implement advanced financial services.

This concludes Chief's Open-Source Overviews of the the major benefits & advantages of Kyber Network.

Hope this provides value to yourself and please feel free to use this as a resource to help answer questions and bring awareness to the open-source protocol.

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Series

Here are links to the other overviews part of this series, Chief's Open-Source Overviews:

• POLY | Open-Source Overviews
• XMR | Open-Source Overviews
• AE | Open-Source Overviews
• LSK | Open-Source Overviews
• SNT | Open-Source Overviews
• NAS | Open-Source Overviews
• SC | Open-Source Overviews
• NEBL | Open-Source Overviews
• STRAT | Open-Source Overviews
• NEO | Open-Source Overviews
• PPY | Open-Source Overviews
• ARK | Open-Source Overviews
• STEEM | Open-Source Overviews
• Utopian.io | Open-Source Overviews
• Steemit Part #1 | Open-Source Overviews
• Steemit Part #2 | Open-Source Overviews

Sources:

• https://home.kyber.network/assets/KyberNetworkWhitepaper.pdf
• https://home.kyber.network/
• https://www.youtube. com/watch?time_continue=106&v=lNNLr2D0yig*
• https://home.kyber.network/#faqs
• https://coincentral.com/kyber-network-beginner-guide/
• https://kyber.network/
• https://themerkle.com/what-is-kyber-network/
• https://coinmarketcap.com/currencies/kyber-network/

Image Sources:

• Blog headers created by myself
• https://smarticoinvestor.com/kyber-ico/
• Screenshot from https://www.youtube. com/watch?time_continue=106&v=lNNLr2D0yig

Namaste

@chiefmappster

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Posted on Utopian.io - Rewarding Open Source Contributors

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