Raiden Network Token: why is it worth buying?

The development of the crypto industry as a full-fledged business has led to the emergence of a large number of projects designed to facilitate the integration of blockchain into various areas of activity, as well as to serve companies operating in networks that lack the necessary functions.

It also became obvious that many networks are not able to withstand a huge number of transactions, this causes queues for making payments and a refusal to further operations, that is, from using a specific cryptocurrency.

The Kyber Network has an ambitious goal of becoming a kind of hybrid of NASDAQ and VISA in just 5-10 years, offering clients unique working conditions.

What is Kyber Network

The project started at the beginning of 2020. The service positions itself as an exchanger and a payment system at the same time.

The highlight on which the bet is made are smart contracts for conducting exchange operations and almost instantaneous exchanges implemented with the help of reserve managers.

The company's ICO was more than successful, collecting $50,000,000.

The funds were distributed according to the already formed roadmap, although some deadlines were changed:

• Q1-2018. Start of the project in version 1.0, supporting Ethereum tokens;
• Q2-2018. Implementation of support for tokens of other crypto networks;
• Q3-2018. Supplementing the trading platform with cryptocurrencies with the largest capitalization and market activity;
• Q1-2019. Implementation of trading processes between cryptocurrency networks and ecosystems.

There is no need to worry too much about the fact that the plan will be brought to life, since the advisor of the project is Vitalik Buterin, a legend in the crypto industry (co-founder of the Ethereum network) .

The first step in implementing the plan was testing the system, which started on February 11, 2020.

Not everyone took part in it, but only those registered in the WhiteList posted during the ICO.

The task of testers is to search for bugs and errors, as well as test fixes in real time in order to exclude force majeure after a full start.

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Cyber ​​Network

Kyber Network (KNC) is a decentralized exchange and payment service.

We design and build KyberNetwork, an on-chain protocol that enables instant exchange and conversion of digital assets (i.e. crypto tokens) and cryptocurrencies (i.e. Ether, Bitcoin, ZCash) with high liquidity. KyberNetwork will be the first system to implement several convenient exchange operational features, including reliable, decentralized execution, instant trading and high liquidity.

Rate as of 08/14/2020

• Rate:
  1.946205 USD
• Symbol:
  KNC
• Rating (CMC):
  40

Algorithm

In addition to serving as an exchange, KyberNetwork also provides payment APIs that will allow Ethereum accounts to easily receive payments from any crypto token. So, any merchant can now use KyberNetwork APIs to allow users to pay in any crypto token, and the merchant will receive payments in Ether (ETH) or other selected tokens.

Although KyberNetwork is launching on the Ethereum network, its future plan includes supporting cross-chain trading between various cryptocurrencies using active nodes and promising protocols such as Polkadot and Cosmos.

Through this payment service, Ethereum accounts can securely receive payments from Bitcoin, ZCash and other cryptocurrencies using our payment APIs. Secondary instruments will be introduced to reduce the exposure of users of KyberNetwork Crystals (KNC) and selected cryptocurrencies to volatility risk. This will allow users to artificially participate in price movements.

The problem of having many digital assets

As ICOs become larger, so does the number of new crypto tokens. It is logical to assume that investors will purchase various in-demand tokens as part of their investment strategies. The convertibility of one crypto token to another presents a new challenge for both investors and operators. For example, it may be a problem for one of the parties to allow an already running contract to accept new crypto tokens as a form of payment.

This also creates more room for implementation bugs and security holes. For example, recently during the ICO of the DAO token there was a serious bug that caused more tokens to be distributed to SNGLS investors than to ETH investors, although the amounts of their contributions were the same. Thus, there is a need to simplify the payment procedure for both token holders, merchants, and users on the network.

Decentralized on-chain exchange service

We present KyberNetwork, a decentralized on-chain exchange service that provides several useful applications, including forming a practical exchange and providing merchants and users with payment APIs that allow them to instantly convert tokens without any effort or worry.

There is no order book. Users will receive the conversion rate before sending the transaction and receive the corresponding amount. Users do not need to pay any additional fees (other than transaction fees).

KyberNetwork benefits by setting an acceptable markup on the conversion rate.

Our users can also send existing funds in Token A, converting them into different types of Token B, and sending them to another user who only accepts payments in Token B, all in one transaction. What's even more interesting is that KyberNetwork is implementing a new standard contract wallet to allow existing contracts that only accept a few tokens to receive payments from any future tokens without the need for any modification to the contract code. This allows contracts or merchants to have access to a wider group of users and accept payments and deposits in any tokens that are supported by KyberNetwork. The KyberNetwork design features several new designs to support all of these applications.

Instead of maintaining a global order book, we maintain a reserve warehouse that stores enough crypto tokens to ensure exchange liquidity. The reserve is directly controlled by the Kyber contract, and the contract generates a conversion rate for each exchange pair of tokens by sampling from all reserves. Rates are updated frequently by reserve managers, and the Kyber contract will select the best rate for users. When a request is received to convert Token A to Token B, the Kyber contract checks to see if the correct amount of Token A has been credited to the contract account, and then sends the corresponding amount of Token B to the address specified by the sender. The amount in Token A, after fees are taken into account, is credited to the reserve that Token B backs.

New Standard Contract Wallet

We are introducing a new standard contract wallet that enables the ability to run some of our exciting applications. Specifically, our new standard contract wallet allows the Kyber contract to send the user's newly converted tokens to the destination address on behalf of the user. The destination address will receive the converted tokens as if they were sent by the sender and not by the Kyber contract.

Our long-term plan also includes the use of promising features of the EVM language in order to build an efficient ZCash node on Ethereum. A ZCash node on Ethereum will allow us to support cross-chain trading between ETH and ZEC. We are also leveraging emerging platforms like Polkadot and Cosmos to enable more cross-chain trading and payments.

Kyber contract is designed to be extensible and has good modular components. In particular, we provide for the dynamic addition of new tokens or exclusion from the list of existing ones. Thus, in the future we will be able to work with any tokens or digital assets.

Loy Luu, Yaron Welner

General idea of ​​Kyber Network

The company has ambitious plans, but without understanding what motivates the developers and what the final goal of the project is, it is difficult to make some decisions and proposals.

The project's CEO, Loi Lu, gave an excellent speech describing the problem the project aims to solve, as well as the advantages over existing solutions.

“The cryptocurrency industry is experiencing active growth and maturation. Total capitalization exceeds $3 trillion. and continues to grow. Companies serving cryptocurrency holders with regard to transfers, exchanges and investment decisions were not fully prepared to motivate scammers to seize funds from clients of our traditional crypto exchanges. The key factor that allowed the attackers to commit thefts was the accumulation of a large number of cryptocurrencies in one place.”

Let's remember only the most “lucrative” robberies of recent years:

1. Mt.Gox hack and theft of $460,000,000 in Bitcoins;

2. Bitfinex loses $72,000,000 in BTC due to hacker attack;

3. January 2020 theft of $550 million in NEM coins from the CoinCheck platform - this hack set a record for scammers’ profits;

4. February 2020 unauthorized withdrawal of $170 million in Nano currency from the BitGrail exchange.

There is no talk at all about cases when a relatively small amount of cryptocurrencies was stolen, when exchanges organized competent and prompt coverage of expenses or did not report problems at all, so as not to spoil their reputation and covered losses from special funds or their own funds; there are dozens of them.

The reason that such events became possible lies in the fact that the exchange acts as an intermediary between the seller and the buyer, placing funds of participants on accounts linked to the platform.

We implement all trading operations (in fact, this is a simple exchange from seller to buyer) through smart contracts without the stage when funds will be stored on the exchange itself. We offer a user who wants to exchange STORJ for ETH to find a counter offer from the same user and make a guaranteed exchange through a smart contract.”

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Raiden Network Token: cryptocurrency rates to the ruble

Current cryptocurrency rates to bitshares – monitor fluctuations online. Information comes from the largest exchanges and is processed in real time. You can see exchange rate changes for most of the most popular fiat currencies. Online charts, automatic converter and news will allow you to quickly navigate the current market trends in the relationship between bitshares and cryptocurrencies.

It is always worth remembering that the cryptocurrency exchange rate is quite volatile. It can either grow by several percent in a couple of minutes or fall. This volatility attracts most investors, who constantly monitor the price of cryptocurrency in order to buy at the lowest price, and then wait for growth to sell at the highest. You can buy cryptocurrency quickly and at a favorable rate in the Matbi online exchanger. The service has been operating for more than five years and can offer users not only the exchange of cryptocurrencies, but also their reliable storage. Matbi's built-in crypto wallet supports four leading cryptocurrencies: Bitcoin, Litecoin, Dash and Zcash. A high level of protection for users’ crypto assets is provided by “cold” wallets, as well as three-factor authentication when entering your personal account (PIN code, email code and SMS code, which can be replaced with Google Authenticator). The service is also interesting to users, as it includes a multi-level affiliate program. 24-hour technical support promptly answers all user questions. How to become the owner of cryptocurrency in Matbi is discussed in detail in this video.

Estimate!

6.12

10010

Liquidity problem

Kyber Network is not the first company to move digital currency trading to a decentralized exchange. Many predecessors, despite great ambitions and competent implementation of the software, were unable to create sufficient liquidity for trading instruments.

The main reason is that it is not easy to find a counter order of the same or similar size between two specific users.

At the same time, periods of active demand practically exclude supply and vice versa, at least until the number of active traders becomes sufficient.

Kyber Network has a solution to this problem - reserve funds, called “Market Maker” in Forex. The solution, like everything ingenious, is simple.

The Kyber Network invites companies and private investors to place their excess cryptocurrencies and tokens into reserve trading funds and become reserve managers. Such managers put their offers on the market with rates and spreads, creating volatility.

Kyber Network's main goal is to provide multiple ongoing offerings across all verticals by engaging reserve managers. For the latter, the benefit will be to profit not only from exchange rate changes, but also from the spread on coins that are not in demand on other sites. For example, an exchange receives commission fees in tokens for trading operations and wants to wisely invest them in growth. Tokens are staked as a reserve and earn money while providing liquidity to a trusted trading platform.

Partners in this matter can be exchanges, holders of a large number of cryptocurrencies and tokens, as well as fund managers investing in the crypto industry.

Under normal conditions, demand should be covered by supply approximately 1 to 1. For periods when everyone wants to buy but not sell on the Kyber Network crypto exchange, trade bots and smart contracts come into play. The “transfer” of excess funds to centralized sites and the purchase of missing coins at the most favorable rate to maintain the market situation begins.

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Kyber Network Cryptocurrency Review

The Kyber Network cryptocurrency is created on the basis of Ethereum and makes it possible to instantly carry out transactions and convert assets at the current rate.
The project is similar to the 0x network, but unlike the latter, all functions are implemented using the blockchain. At its core, Kyber Network is a decentralized exchange built on blockchain technology and does not have an order book. Classic centralized trading platforms have several weaknesses, including security problems and slow transaction processing. As for popular decentralized platforms, they are also not without their drawbacks. For example, they have low liquidity, which does not allow for good trading activity, and commissions for placing orders are often quite high (this is due to the placement of the order book on the blockchain).

The Kyber Network or KNC project was developed by professionals in the cryptocurrency field. The core team consists of 14 people. These include engineers, researchers and doctors of science. Advisors have been involved in the project - people who have many important achievements and invaluable experience in many financial areas. For example, even the main researcher and founder of the ETH network, Vitaly Buterin, is an advisor to Kyber Network.

The creators of the KNC cryptocurrency pay special attention to the security and reliability of financial transactions, so several advantages of the network can be highlighted:

1. All transactions occur with the support of smart contracts. Thus, users do not trust their own assets to others.
2. The platform is compatible with other smart contracts, and you do not need to make any changes to connect them.
3. The Kyber Network works with a huge number of cryptocurrencies, so it maintains high liquidity.
4. Users do not waste time confirming transactions, since they are all carried out instantly.

KNC tokens

Like any cryptocurrency ecosystem, Kyber Network has its own payment tool, KNC.

There are two tasks that tokens will perform:

• To be able to reserve managers place their proposals, they need to purchase KNC tokens. They will also accrue remuneration to managers, partners and all network participants;
• Activation of reserves and increase in the value of KNC. All coins that remain after each settlement cycle will be burned, which will automatically increase the value of the remaining ones.

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How the Kyber Network works

In order to become a member of the network, no registration or verification is required, since trading is carried out P2P.

To work, you will need to connect wallets with currencies in the system for which transactions will be made:

• Trezor and Ledger Nano hardware storage;
• Software wallets - Trust Wallet, ImToken, Coin Manager.

We are currently working to expand the number of partners.

When the project launches, a new “Kyber” tab will appear in the accounts of all wallets.

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Receiving and sending payments

The network implements a payment API interface that allows buyers to pay for goods/services with any coins or tokens, and sellers to accept only those currencies that are beneficial to them.

That is, the seller indicates in his account the main currency into which any customer payments will be converted.

Let's look at an example.

The buyer only has MANA tokens to make transactions.

The seller only accepts ETH for their product or service. Cyber ​​network technology allows you to recalculate such payments “on the fly” and transfer the corresponding number of target coins for the transaction to the seller.

This can be done through the “locked conversion rate”.

It allows both parties to calculate the amount required for payment by the buyer and the final amount received by the seller before the transaction begins.

If we leave behind the complex names and definitions, it turns out that the conversion of assets demanded by sellers is also carried out through volatility managers, which makes the circulation of tokens of promising projects easier.

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Advantages and disadvantages of the Kyber Network

PROS:

• The idea and approach to its implementation are generally very good. They will promote cryptocurrencies as means of payment, as was originally intended. Instant transfers, absolute reliability and the absence of an intermediary in the form of traditional exchanges can leave the latter without work;
• Team. The project recruited people with extensive experience in the industry, most of whom had successful launches of crypto projects behind them;
• Cyber ​​Network is the second project where Vitalik Buterin acts as an advisor. His second brainchild is Omise GO tokens, which after the ICO increased their capitalization by 37 times in just two months;
• The KNC token not only circulates on the Cyber ​​network, but also generates profit by being invested in reserve funds or held in accounts in hopes of increasing in value due to the burning of unused tokens at the end of the settlement cycle.

CONS:

• The solution to creating reserves to support liquidity will require serious capital, especially when the number of instruments traded on the site reaches the designed value. Holding reserves for unpopular tokens will freeze serious capital with relatively low profitability;
• The final stage of the development of the project “Trade between cryptocurrency ecosystems” will take a long time, if it can be implemented in principle, and this will require even more funds;
• The work of the Cyber ​​network is slower than that of its closest competitor “0x”, and therefore it will be difficult to switch users who are comfortable working with “0x”

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Raiden Network Token

Raiden Network Token (RDN) is an off-chain solution to the scaling problem, enabling near-instant, scalable payments with low fees. It complements the Ethereum blockchain and works with any token compatible with the ERC20 standard. The Raiden project is under development. Its purpose is to research state channel technology, define protocols, and develop reference implementations.

Rate as of 08/14/2020

• Rate:
  0.491905 USD
• Symbol:
  RDN
• Rating (CMC):
  312

How does Raiden Network work?

The Raiden Network is an infrastructure layer built on top of the Ethereum blockchain. Although its basic idea is simple, the underlying protocol is quite complex and the implementation is non-trivial. However, it is possible to abstract the technical side of things, allowing developers to interact with a fairly simple API to develop decentralized applications based on the Raiden Network.

An obvious use case for the Raiden Network is payments. The global payments industry currently generates approximately US$2 trillion in annual revenue and continues to grow.

Raiden Network 101

Blockchains do not scale well because there is a need for global consensus on the order and outcome of all movements. Each participant must be aware of all updates to the distributed ledger. Hardware and bandwidth limitations set a limit on the number of updates per second that can be shared on the decentralized network. The main idea behind Raiden Network is to avoid the weak point of blockchain consensus. This task is accomplished through the use of a network of payment channels that allow funds to be moved securely off-chain, i.e. without involving the blockchain for each movement.

Use Cases

Retail payments

There are quite a few high-profile Ethereum token-based projects competing to bring blockchain payments to the masses. In developing countries, these efforts could potentially improve the lives of millions of people. Raiden Network could be a key building block in this process, as meaningful adoption relies on scaling technologies and competitive fees.

Peer-to-peer cash

As we know, cash is losing ground as the trend towards a cashless society develops. Scalable blockchain-based payments can help preserve the confidential and decentralized nature of cash while updating the user experience to next-generation expectations.

Micropayments

Blockchains are a leading candidate for the payment infrastructure of the upcoming machine-to-machine economy. The Internet of Things can increase the number of commercial transactions by an order of magnitude, and the lower the cost of transfers, the more use cases arise.

Micropayments can be used to gain fine-grained access to APIs, bandwidth, processing power, storage and electricity, i.e. essentially – to any infrastructure. The same goes for content or entertainment, such as web pages, games, streaming video or audio.

Already, many proposed decentralized applications rely on micropayments between participants on the network to encourage cooperative behavior.

Instant token exchange

The second most prominent use case for blockchains is probably token exchange. This option is even more important than payments if the current trend towards tokenization continues to develop. Decentralized exchanges built on top of the Raiden Network's atomic token swap feature make it possible to instantly exchange tokens at a low cost.

Although ETH does not currently qualify as an ERC20 token, there are simple wrapper contracts that allow ETH to be treated in the same way as ERC20 tokens.

What is μRaiden?

μRaiden (Micro Raiden) shares some properties with Raiden Network. This network can provide trustless, instant and free transfers between two parties. It is designed to set up many-to-one payments, as is the case when users interact with a decentralized application. However, this network is not suitable for setting up many-to-many payments as users must lock their tokens in advance for each potential payee. This limitation is due to the reduced technological complexity that currently allows μRaiden to be used on the mainnet.

What is Raidos?

Raidos (or Raiden 2.0, "dos" being Spanish for "two") is a proposed sidechain technology for generalizing state channels. While the Raiden Network is limited to moving ERC20 tokens, Raidos aims to scale Ethereum's generalized computing capabilities through a network of satellite chains that can host any smart contract. This technology is similar and complementary to Ethereum fragmentation.