Crypto Spotlight: KNC
Kyber Network Crystals (KNC) is another new addition to the Wirex platform - and we’re extremely excited to have it on board. So, what do we know about KNC?
What is KNC?
KNC is an Ethereum-based token used for paying fees on the KyberNetwork. The KyberNetwork is a decentralised liquidity protocol which aims to simplify the exchange of cryptocurrencies and digital assets - it enables instant token swaps without the need for an intermediary.
The network is essentially used to transfer tokens from person to person, without the sender’s tokens being required to match the recipient’s tokens. Kyber network takes care of this conversion by charging the sender a small fee which is added into a reserve pool. The network maintains its liquidity through the so-called ‘Dynamic Reserve Pool’.
Kyber Network’s reserves are managed by - you guessed it - Reserve Managers, who maintain the reserves and calculate exchange rates. Reserve Managers are required to buy KNC tokens in order to operate their reserves.
Who created KNC?
Kyber Network was founded by Loi Luu, Victor Tran and Yaron Velner in 2017. Ethereum's Vitalik Buterin is also on the network’s impressive advisory board.
What makes KNC unique?
If you’re a Star Wars fan and you still haven’t put two and two together - the name Kyber Network Crystals does indeed come from the kyber crystals used to power lightsabers. And KNC powers the Kyber Network. Get it?