Kyber Network and My Ether Wallet Launch Decentralized Instant Token Exchange
Ether holders will now have the ability to exchange their ETH for popular ERC20 tokens by utilizing a new token-swap feature launched by MEW, the first Ethereum wallet provider, and Kyber Network, the first decentralized, on-chain exchange platform.
This feature will allow MEW wallet users to easily convert their Ether into twenty different ERC20 tokens, including Kyber Network Coin (KNC), EOS, OmiseGO (OMG), and stable coin DAI. This swap function gives MEW’s millions of monthly users the power to diversify their Ethereum-based holdings without having to move their ETH out of their MEW wallets and onto an exchange.
In the last quarter of 2017, the Ethereum network reached an all-time high market capitalization of $68.9 billion. MEW and Kyber hope to enhance digital asset conversion on the Ethereum network by offering the safest and most efficient means to exchange ETH for ERC20 tokens.
Kosala Hemachandra, the founder of MEW, said, “This exciting collaboration is founded on a shared goal of protecting the privacy of our users, while making the cryptocurrency trading experience fluid and enjoyable.”
The founder and CEO of Kyber Network, Loi Luu, said, “People around the globe know and trust the MEW brand, whether they are using the platform to set up wallets, or to send and receive money from other users. This major partnership with MEW affirms our commitment to every individual who holds cryptocurrency and cryptotokens to keep delivering the seamless and secure token swap experience they have come to expect from Kyber Network.”
Neither MEW nor Kyber Network request or store any data on their users, and users always have complete control over their assets and private keys. Hemachandra said, “We refuse to collect user data as we want to honour the principles of blockchain technology, of which privacy is paramount.”
By mid-2018, MEW and Kyber plan to expand the token swap function to allow for conversion between different ERC20 tokens, instead of just between ETH and ERC20s. By the end of the year, MEW and Kyber plan on implimenting cross-chain token conversion, which would give users the ability to exchange digital assets based on different blockchains. This feature would allow MEW users to convert their Ether into the token of their choosing, regardless of whether that token was based on Ethereum, all without having to first withdrawl the Ether from the MEW wallet.
Some wallet providers, such as Exodus, have implemented a built-in token exchange on their wallets before, primarily using ShapeShift to power the instant exchange feature. However, ShapeShift is a centralized exchange. The Kyber Network, on the other hand, is a decentralized exchange, built on the Ethereum network. This feature adds security and privacy, as users data and funds are not collected and stored on the central servers of a single company, but are instead distributed across the entire Ethereum network.