What is the Utility of Kyber Network Coin?
Kyber Network has its own token which is KNC or Kyber Network Coin. What is its utility? What gives this token value?
What is the Utility of Kyber Network Coin?
Kyber Network has its own token which is KNC or Kyber Network Coin. What is its utility? What gives this token value?
To understand what Kyber Network coin is first you have to know what is Kyber Network. If you have ever exchanged steem for fiat money or other cryptos then you know how escrow works.. Kyber Network is a similar thing but is based on ethereum. To be more exact it is based on EBP- Ethereum Based Protocol.
There are some features that differentiates kyber from all other exchange networks. It has a instantaneous exchange system and fast, high conversion rate.
How it works is suppose, you owe your brother 50 steem.. Today he asked you to repay him.. But you only have bitcoin while he wants it in steem. So you use KN to settle the transaction and ask it to convert 50 steem worth bitcoin into steem. Now KN first checks if you have added enough bitcoin to convert including fees. If it matches what your brother asked for KN will convert and send the steem to your brother.. But it completes the whole process in a few seconds.
Now KNC-Kyber Network Crystal token or Kyber network coin is a ERC-20 based token and it is charged as a transaction fee. It is gathered into the reserved pool and used for covering operational costs.. Or it is rewarded to third parties who bring transaction volume to the network..
the Kyber Network ecosystem subsists of many stakeholders that wish to use the network. These stake holders can be broken down into 3 areas; supply side stakeholders, demand side stakeholders and independent stakeholders.
Demand-side Stakeholders
End users
Wallet providers
Decentralised applications integrating the Kyber Network Exchange
Supply-side Stakeholders:
Reserve Managers
Reserve Contributors
Projects with ERC20 tokens wishing to be listed
Independent Stakeholders
Token holders
Kyber Network development team