Is Kyber Network the Best Decentralized Exchange?

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It seems like decentralized exchanges (DEX) are all the rage at the moment. Every time I blink a new one has popped up and larger exchanges like Binance, currently on a centralized model, are making moves toward decentralization. This trend isn't showing any signs of slowing down either.

DEX allows users to move their funds on ledgers without the use of a trust and without a single point of failure. Like cryptocurrencies themselves, the exchanges exist on many computers so if one goes down the network continues to function. With a traditional exchange, you place your trust in the exchange to hold your funds, this is the greatest difference between centralized and decentralized models. In a DEX typically you will link your hardware or software wallet and trade directly from there.

One popular exchange is Shapeshift. It is convenient and nearly instantaneous. There is no bid or ask, charts or anything else of the sort. Built into many wallets and available through browsers and apps, you can convert a large selection of coins in a wallet or between wallets at any time all without an account! Sounds pretty great, and it is, but there is a problem. The fees can be downright outrageous. Where you would find yourself paying a 0.1% or so trade fee on most exchanges shapeshift is much heavier sometimes near .25% or even more! This is where Kyber Network comes in...

The Same...Only Better

Kyber Network functions much like Shapeshift. You pick a currency and trade it for another, right then and there. It has the same lightning fast speed and convenience but at a much better rate. For example, at the time of this writing, I could trade 1 Ethereum (ETH) on Shapeshift for 46.5 OmiseGo (OMG) or I could go to Kyber Network and trade that same Ethereum (ETH) for 47.4 OMG. Almost an entire OMG difference or in the terms of USD about 10 or 11 dollars. Quite a difference between the two. One can also avoid some costly deposit and withdrawal fees as well as limits for both in a DEX model like Kyber. For long-term holders, some higher fees may not be a bother, but for avid traders, any break on fees is a blessing.

The beta version of Kyber Network is currently out and steadily gaining adoption. Kyber Network itself has a clean and easy to use interface. Balances hang over the top of an exchange bar in which you can trade currencies while recent trades on the network are displayed across the bottom. It's simple, very simple, but effective. The choice of cryptocurrencies is limited now, only listing 16 tokens, but the attraction of no fees should keep growth steady as more are added in the future.

Kyber still uses Ethereum (ETH) gas for transactions but doesn't charge any fees itself. This is a big advantage of the platform along with its speed. It also has a large list of compatible wallets, both hardware and software. Once your key is linked you are ready to exchange, no sign up at all.

Worth the Hype

The Kyber token was one of the most anticipated ICOS in September of last year used as a reserve fee for platform managers. "Before operating, Kyber Network reserves need to pre-purchase and store KNC tokens. In every trade, a small fraction (exact numbers are TBD) of the trade volume will be paid by the reserve to Kyber Network platform in KNC. This small fee represents the reserve's payment in return for the right to be able to operate and earn profits from trading activities in Kyber Network. The collected KNC tokens from the fees, after paying for the operating expenses and to the supporting partners, will be burned? i.e. taken out of circulation. The burning of tokens could potentially increase the appreciation of the remaining KNC tokens as the total supply in circulation reduces. In order to determine the network fees, the conversion rate between KNC and ETH will be updated frequently to the Kyber contract by KNC operators, based on the trading rates on various exchanges." For those that bought early, this works as sort of a share buyback that has its own advantages and disadvantages. 

Since ICO (starting around 0.50 USD each) the token hasn't seen the largest gains relative to others, but with it currently trading around 1.50 USD, and higher if traded to BTC, it is still a little more than significant. Currently, KNC is down from its high point just below 6 dollars and looking to recover as BTC regains its traction in the market. This could be a good point to accumulate with it trading at such a discount and being seemingly undervalued. Perhaps the most exciting prospect is the idea of future coin burns lowering the total 215,625,349 KNC supply and subsequently raising the value of remaining KNC. Considering all of this, I give Kyber Network my personal rating of 7 and a half Lightsabers out of 10.

To visit Kyber network and utilize the exchange visit the website here: https://kyber.network/

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Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content

Comments (4)

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"Kyber still uses Ethereum (ETH) gas for transactions", could you elaborate on that?

   0   Reply (3)   Follow(437)  

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    sure, Kyber itself doesn't charge anything but the regular ethereum fee is applied for interacting with smart contracts. It is the same fee you pay when sending from a wallet since that is what you are doing in essence. I hope that clears things up a bit

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      In practicality it means the difference between paying .16 or so using kyber vs several dollars using a similar instant exchange.

         0  

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        Thanks

           0  

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