Huobi is a cryptocurrency exchange and dissimilar from any of its counterparts, it does not seem to e decentralized – at least not yet. The platform, based in Singapore, is planning to move many its operations to the blockchain and accordingly, it may become an decentralized autonomous organization or DAO under the name Huobi Chain.
The new type of structure is set to lead to more community-based interactions and decision making, codes, and the absence of third-party verification.
According to a statement released by the platform, “By building a public blockchain, Huobi is migrating from a decentralized one that’s run by the communities.”
Further, while enthusiasm for this type of system has been expressed since 2013, there has yet to be any serious action on the project, except by DAO, a venture capitalist fund. The platform’s project has been able to raise $150 million in an ICO and it then lost $50 million when it was hacked.
Aside from DAQ, another platform interested in such a project is Binance, a large cryptocurrency exchange. Of course, it should also be noted that there are some disadvantages to a decentralized system, such as higher transaction fees and the need for more computing power for verification of record trades.
They also released the HB10 Crypto Asset Tracking service as part of their expansion into a DAO blockchain model.
We will continue to update more about the upcoming Huobi Chain and their DAO transition.