- Huobi announced on Feb 28th the launch of its blockchain beta testnet as part of an expansion plan to tap into the decentralized finance (DeFi) market.
- Huobi Chain, the blockchain network designed for this, runs as an open-source where participants can leverage the platform’s features to get financial services attributed to digital assets.
The Singapore-registered crypto exchange has partnered with Nervos in this project as its technical development partner. Together, the two provide a regulatory friendly ecosystem for DeFi’s offering financial services like lending, decentralized exchange, payments and asset tokenization based on blockchain networks. Huobi’s Group VP of Global Business, Ciara Sun, was optimistic of this milestone;
“With Huobi Chain, we want to provide the decentralized framework that facilitates industry-wide collaboration, which is critical to the widespread adoption of DeFi.”
For internal blockchain regulation, Huobi chain will use the Delegated Proof of Stake Consensus (DPoS) allowing authorities to operate on the network through special nodes. Furthermore, a decentralized identifier will be used to capture personal records digitally for the purpose of AML/KYC procedures across borders.
Huobi Chain Prospects and Practicality
This platform was purposely built to serve the financial services space; third parties can easily develop apps tailored to their needs once Huobi’s chain real version goes live. The Huobi chain network design basically facilitates cross-chain linking, asset management and the high-volume trades in financial markets. Both centralized and decentralized networks can interact with the blockchain through 3rd party side chains or smart contracts.
Popular crypto coins which are supported by Huobi chain include Ether (ETH), Bitcoin and Huobi’s native token (HT). It is however notable that the latter is the only utility token that will operate on Huobi chain.