Decentralized exchanges are gaining a lot of traction in the cryptocurrency world these days. Kyber Network is one of the platforms a lot of people are showing great interest in. With centralized exchanges being scrutinized and targeted by hackers, it is evident that decentralized solutions are the way forward.
Kyber Network Goes Live
Even though Kyber Network is nothing new under the sun, the project has been in development for quite some time now. A lot of people were excited about the launch of this platform, although it remained unclear if and when the platform would go live. It now seems that launch officially took place Monday night, and the Kyber Network is now open to the public. This is an important milestone for the company, especially after its successful ICO in 2017.
What this particular exchange brings to the table is a decentralized trading platform capable of supporting any cryptocurrency or digital asset. While the platform is currently still in public beta, it is evident the “full” launch of this platform is a lot closer than people might expect. For now, there is still no official release date set , as it will heavily depend on how this public beta performs in the coming weeks and months.
Considering that a lot of cryptocurrency exchanges are suffering from hacks and phishing attempts these days, it is evident there is a growing need for decentralized solutions. Although there are a few decentralized exchanges on the market already, more competition can only be positive. Competing decentralized protocols will offer users a lot more opportunities to trade the currencies they are passionate about and even discover completely new trading pairs.
One thing people are always concerned about when it comes to decentralized exchanges is that there may not necessarily be enough liquidity. Kyber Network aims to address this problem by providing high liquidity to enable instant transactions without compromising security. This is done by using reserve managers, who are incentivized by the network to monetize their idle assets. It is an interesting approach which seems to work quite well, although the real test has only just begun.
By serving users’ trade requests, these reserve managers can earn profit from the spread determined on the platform. As the Kyber Network becomes more popular and processes more trades, it is evident there will be more earnings for reserve managers in the future. It is in their best interest to promote the use of this decentralized exchange to improve its overall liquidity and demand. Whether or not this means Kyber Network will become a big success remains to be determined.
It is evident cryptocurrency continues to evolve as an industry. While there is still a dire need for centralized trading platforms right now, the transition to decentralized solutions is already underway. We can only hope to see more of these platforms come to market soon and genuinely pose a threat to centralized exchanges. When it comes to user funds, a decentralized solution is, by default, far more secure.