To the center of the exchange of the new army KyberNetwork, to provide the next generation of payment services to the center of the exchange


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Reporter: pencil leadn

Go to the center of the central exchange, add new members. KyberNetwork is a non-trustable, centralized exchange that facilitates real-time trading and redemption of encrypted assets and ensures liquidity. Our agreement will be the key to promoting the liquidity of the asset chain in the chain-chain ecosystem, while helping to improve people’s digital money – for more people as a tradable asset – cognition.n
nEther Square has just been launched when many people predict that it will bring a huge impact as it is now. At the time of this writing, the market capitalization of the Ethernet Square has exceeded $ 30 billion and has a large number of DApps (centric applications) based on the ethertop, including Digix, Gnosis,n
nGolem and Melonport, and so on, these applications to promote the further expansion of the ecosystem. Interestingly, in the area of ​​the chain chain, the emergence of various Dapps, so that the phenomenon of ICO (initial currency issue) all the rage, start-up enterprises through the issuance of digital money for all, for the further development of the project financing. Through ICOs, companies and organizations to the public to launch their encrypted assets, that is, digital currency. These digital currencies are a new type of digital asset that can be used for trading based on block chain technology.n
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nThe problems of complex types of digital assetsn
nWe are getting closer to an ecosystem that has a lot of different encryption assets. More and more projects are financed through the issuance of digital currency, and the number of digital currencies on the market will grow. Over time, sector chain company investors and contributors to various agreements will receive a variety of required digital currencies as part of their investment strategy. However, there are limited types of digital currency that can be used to liquidate the market, which makes the exchange of encrypted digital currencies a new challenge for investors and operators. In addition, the more digital currency appears to mean more payment options, users of various forms of digital currency payments, are very stressful for businesses.n
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nThe phenomenon can not be ignored: the encrypted asset exchangen
nToday, the daily trading volume between well-known and coin-like currencies such as Bitcoin and Taisha is as high as several million. Similarly, the average daily trading volume between Taitong and other encrypted assets (most of less than two years) is as high as several million. Having said that, although the encrypted assets have a decentralized and non-trustable feature, most of the transactions are handled at the central exchange, which still faces the risk of internal fraud and external hacking. This is a question worthy of sustained attention, and we have heard of a lot of transactions on various types of hacking attacks, such hackers not only affect thousands of users, but also caused up to hundreds of millions of dollars in losses.n
nNot only that, the existing exchange, whether or not to the center, have a common problem, the user often need to wait a few minutes or even longer to confirm the transaction and cash. This leads to the same transaction order users see the price and the actual price is inconsistent.n
nAlthough there are already some solutions on the market, before going to the mainstream, to the centralization of the exchange to solve some problems, including low mobility, user-friendly and so on. For example, some decentralized exchanges keep the user trading instruction set on the chain, which is not a big problem, and once the user chooses to adjust or cancel the bid order, the system cost will be very expensive. Repeated changes to the transaction order will make the problem more complicated, because the cost will gradually increase until the system to find a matching order. In addition, there will be a delay in the process from the creation of the transaction to the block, which will be exploited by the hacker.n
nThe emergence of KyberNetwork is to address the centralization and decentralization of these problems facing the transaction.n
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nIntroduction to KyberNetworkn
nIn simple terms, KyberNetwork is a non-trustable, centralized exchange that facilitates real-time conversion / conversion between encrypted assets. With KyberNetwork, the user can pay in the digital currency A to the corresponding recipient who wishes to receive payment for the digital currency B, and the whole process is in place. Not only that, KyberNetwork has also introduced a new smart contract interface that allows existing recipes that only accept specific digital currencies (such as Jaxx only accept REP, GNT, etc., without accepting other digital currencies, without the need to modify the digital currency contract code ) To accept any existing or future possible digital currency (such as PAY and CVC). In other words, KyberNetwork enables smart contract and payment recipients to reach a wider range of users and receive contributions and payments from any platform-supported digital currency.n
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nWhat is the difference between KyberNetwork and existing deals?n
nFast and safe. KyberNetwork has block immediacy, which significantly reduces the delay in the process from creation to block acceptance. Once the instruction to initiate the transaction is placed in the block, the transaction is confirmed. This feature provides users with greater security because it eliminates the intention of an attacker to exploit a transaction to receive a window vulnerability. KyberNetwork operators do not hold the user’s digital currency, and the instructions are executed by smart contracts, so these digital currencies are free from the risk of theft.n
nHigh mobility. KyberNetwork ensures liquidity by combining the following two ways: (1) making full use of its own repository with a certain amount of encrypted digital currency; and (2) independent reserve managers manage network reserves that are not necessarily associated with KyberNetwork operators. Each reserve can be automatically priced for each of its digital currency pairs. When the system receives an instruction request to convert the digital currency A into the digital currency B, the Kyber operator contract will pick the best exchange rate from all the reserves to process the request.n
nHigh compatibility, support chain transactions. In addition, since KyberNetwork runs on the chain, all transactions are instantly confirmed. KyberNetwork is compatible with all accounts, including regular accounts and smart contract accounts. KyberNetwork enables seamless docking between senders and recipients without any third party intervention. So the user can send or receive any digital currency, and do not need to make any changes to the contract form and the etherbox base agreement.n
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nHow did KyberNetwork achieve?n
nKyberNetwork innovates in a way that ensures liquidity, no trustworthiness, and instant currency conversion of digital money, including five participants, as shown in the following figure:n
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nKyberNetwork system participant interaction iconn
nEach of the participants shown in the above figure interacts with the smart contract in a different way, and the dynamic repository in KyberNetwork can meet the user’s request and realize the conversion of any digital currency in one step.n
nIn addition, KyberNetwork allows multiple reserves to coexist, the platform can be in a series of contrast to provide users with the best exchange rate. In addition to the operator, individuals or organizations that are unrelated to KyberNetwork can also register to participate in this system to contribute to the entire repository and become a reserve manager for their personal assets. In this case, KyberNetwork actually provides more exchange and trading channels for those low-volume digital currencies. KyberNetwork does not hold reserve funds managed by independent reserve managers (these funds are stored in reserve contracts), but to ensure that their reserve contracts comply with the terms of the KyberNetwork platform.n
nFor more information on how to implement KyberNetwork, please refer to the project’s white paper.n
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nHow is the reserve manager inspired?n
nKyberNetwork has created a platform for reserve managers to monetize their other idle assets. By providing services for a user’s transaction request, the reserve entity gains from the price difference determined by the manager. KyberNetwork works with wallet providers to get more traffic, plus a variety of other digital money items, as well as the network effects within KyberNetwork, where reserve managers can profit directly from trading volume.n
nIn addition, KyberNetwork also provides reserve information panel software to help reserve managers manage reserve access transactions. The Reserve Information panel will contain standard and popular trading algorithms / strategies so that reserve managers automatically rate and re-adjust their portfolios. This flexibility of the platform allows reserve managers to implement and deploy their own strategies anytime, anywhere.n
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nWhat does the KyberNetwork platform offer to users?n
nDue to the lack of liquidity of encrypted assets, coupled with irregular supply and demand, the exchange rate between digital currencies usually have relatively large fluctuations. Worse, unless the volume of foreign currency is particularly large, any exchange will barely reserve a digital currency, which limits the choice of a digital currency holder to trade or to liquidate a particular digital currency. Similarly, digital money holders are almost impossible to hedge operations to reduce the risk of future unfavorable price volatility.n
nIn view of this, KyberNetwork will introduce derivatives such as options and futures contracts to address this challenge.n
nOption. The option contract allows the user to pay a certain fee (we call the option fee) to hedge against unfavorable price changes. The call option allows the owner of the contract to purchase the encrypted asset at an agreed price, and the put is just the opposite, allowing the contract owner to sell the encrypted asset at the agreed price. The option fee is calculated based on the implied volatility of the underlying cryptographic asset.n
nFutures contracts. A futures contract means that the parties concerned agree to carry out the transaction at a later date. The futures contract will be used in such a scenario that the digital money holder needs a certain amount of digital currency in the future. For example, suppose that Wang had Melon’s digital currency, and she wanted to get some money to invest in an ICO project that would soon be in three weeks. She has two options, either now using Melon to change the currency, or in three weeks to buy futures contracts to offset the risk of currency fluctuations, she should want a longer time to hold Melon digital currency, or wait for a can receive Does Melon’s digital currency appear? KyberNetwork offers more options for participants.n
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nHow is KyberNetwork going?n
nChain chain pencil (chainb.com) was informed that, KyberNetwork team led by Loi Luu, is finalizing the details of the release of digital currency. At the same time, the team is also engaged in the smallest viable product development. In addition to ensuring that the basic functions mentioned in the white paper are implemented, the team is also exploring ways to better integrate financial tools into the KyberNetwork platform. On a non-technical basis, KyberNetwork plans to unite some of the block-chain entities to create reserves based on anticipated trading needs while expanding the impact of KyberNetwork on the entire chain-chain ecosystem.n
nKyberNetwork’s Slack address is https://slack.kyber.network/n
nThe blog is at https://blog.kyber.network/ and interested readers can go to keep track of the progress of the project at any time.n

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