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Why Kyber Network (KNC) Is Uniting The Tokenized World

Kyber Network Knc


Why Kyber Network (KNC) Is Uniting The Tokenized World

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Kyber Network (KNC) –Concentration is gradually shifting from the blockchain technology to its main component. The platform had played immeasurable roles in fostering security of information and assets.

It can best be described as a paradigm shift from conventional financial system. Centralized businesses had little or no knowledge on controlling fraud within their embers.

The blockchain with its decentralized outlook tempted traditional platforms with secure privacy and control of assets. Soon after its launch in 2008, wind of change took over the scene.

Bitcoin emerged as an alternate currency to what we had. Threatened by sudden rise of this currency, regulations were put in check to frustrate its growth. The reverse seemed the case as multiple currencies had evolved since then.

Foray into the Tokenized World

Ethereum came on board as alternative to Bitcoin. So far, it had maintained close affinity with it. Many projects came up after this. Majority of these projects conducted Initial Coin Offerings; offering tokens in exchange for fund-raising.

With such being the case, the digital sphere was launched into tokenized world. Tokens are used as rewards for valuable activities.

As the tokenized world is booming, many projects failed to pay heed to the concept behind the blockchain. Many were there for the financial benefits while others wanted names for themselves.

Haven lost focus and derailed from the actual path of the blockchain, many decentralized projects created utility tokens. While this is welcomed, its downside is quite shocking. With its scope limited to the digital space, digital assets hardly have interactions in fiat scenarios. While solution to this should have been at the core of these projects, they rather opted for selfish monopoly of their tokens. What’s the result? Tokens are not interoperable.

Bitcoin opened the flood gate by creating the first token. Ethereum realized the folly on Bitcoin and created seamless mining process. With its coming, Kyber Network (KNC) is looking at ways to make tokens interoperable.

Uniting Fragmented Digital Assets

Aside scalability downside, the blockchain that hosts cryptographic currencies and other digital assets is faced with another downside – interoperability. With tons of ICOs coming up, there are thousands of altcoins and digital assets coming up as well. It is relatively hard for such altcoins getting conversion into cryptographic currencies. Hence, the system is fragmented.

This project has the actual solution to this. Positioning itself as liquidity network the platform through its Ethereum-backed protocol allows faster conversion of digital assets. The platform is totally free of intermediaries. Kyber Network (KNC) distances itself from similar projects by using on-chain protocol.

Removing Order Book

Criticisms had trailed slow throughput of centralized exchanges. Decentralized exchanges that had been touted to perform better found themselves struggling with insufficient liquidity. More worrisome is the fact that they use the order book that accumulates transaction costs.

Casting itself away from the status quo, Kyber Network (KNC) removes the order book. In replacement, it uses decentralized on-chain exchange. With this, digital assets can find interoperability while attracting low costs.

You don’t need Ethereum token to trade Ethereum

One of the major innovations in the tokenized world is interoperability of like-tokens. Ethereum can be exchanged with supported ERC20 token standard. However, Kyber Network (KNC) changes the dance step.

Your currency does not actually need to match expected token. Through its protocol, Kyber Network (KNC) allows you exchange multiple assets that are not matched. This provides great Peer-to-Peer trading on the network.

Open Protocol

The project’s protocol is open-sourced. Hence, users can access and contribute liquidity to the platform. The protocol was designed as platform-agnostic. The idea is to allow interoperability of assets across its on-chain.

There is instantaneous settlement of transactions on the protocol. Finally, Kyber Network’s protocol has easy use. It is designed with interoperability among different ecosystems in mind. Payments through the protocol can be proxy as the platform supports payment of third-parties using tokens.

Who Gets What?
On the liquidity network provided by Kyber Network (KNC), many use cases are supported. Of particular interest are select participants who will contribute and partake of the platform’s liquidity.

Access to liquidity is limited to decentralized funds, private users, payment gateways, vendors and DApps. Market makers, decentralized funds, token holders and team are allowed access to liquidity contribution.

Final Thoughts

The quest to have interoperability of digital assets might have been laid to rest. Kyber Network (KNC) has the solution to much needed interoperability.

One other great upside in the project is it’s open-source protocol that allows multiple platforms exchange their assets. Kyber Network (KNC) has opened a milestone in bringing interoperability among tokens.

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Isaac is currently taking his degree in journalism. His interest varies from Entertainment, Current Events, and Business Monetization. In his early years in the writing industry, he joined different online publication as a contributing writer. Today, he is now a full-time contributor to TODAY'S GAZETTE.

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