Huobi Set To Bite A Huge Chunk Of The DeFi Cake By Launching Public Blockchain Network
Applications for blockchain technology are on a steady rise with many firms using the technology to ensure efficiency and transparency within their core services. This has led to a rise in the number of blockchain networks because based on specific needs, many firms prefer to deploy theirs. In some cases, firms begin on a different blockchain before launching theirs as was the case of Binance whose Binance Coin (BNB) initially ran on Ethereum before it was moved to the Binance Chain.
According to reports, Huobi – one of the world’s biggest cryptocurrency exchange firms based in Singapore – is set to launch its own public blockchain network which will be centred around decentralized finance (DeFi).
Huobi Finance Chain
Nervos, – a Chinese blockchain firm – has sealed a partnership with Huobi for the creation of the new blockchain network, Huobi Finance Chain. The blockchain will fully support more than a few services including security token offerings (STOs), decentralized exchanges (DEX), lending services, stablecoins and also support payment services.
Speaking on the applications for the Huobi Finance Chain, a co-founder Kevin Wang said:
“More and more assets are being tokenized and moved to the digital world, including both native cryptocurrencies and traditional physical assets. The financial industry is now at an inflection point, and together with Huobi, we’re well positioned to help it modernize its services for the decentralized future.”
By the third quarter of this year, Finance Chain is expected to open source and then there will be a testnet launch for the first quarter of 2020 which will be followed in the second quarter with a mainnet launch. According to Huobi, the blockchain would allow regulators come on board on the Huobi Finance Chain as validators in its quest to comply with stipulated regulations. Finance Chain would also support decentralized identifier (DID), include tools to ensure Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements are met.
CEO and founder of Huobi, Leon Li Lin, opined in a different post that some of the blockchain networks currently available do not entirely comply with regulatory statutes.
“Mainstream blockchain systems (such as BTC, ETH, EOS, etc.) lack comprehensive
support for regulation and compliance, limiting their use in the compliance market.”
Nervos, founded by a former Ethereum Foundation researcher and developer – Jan Xie -, successfully raised $28 million in 2018, fully backed by a venture capital firm Sequoia China, a crypto hedge fund Polychain Capital and also the China Merchant Bank with a promise by co-founder and Chief Architect Jan Xie, to
“move full speed ahead as we build an infrastructure that will allow enterprises to reduce the costs of developing and deploying blockchain applications.”
Its co-founders are Daniel Lv, Terry Tai and Kevin Wang.
At the moment, platforms who offer DeFi services seem to be very favourable. Because of high security and transparency as available with blockchain technology, credit facilities are now accessible by an increasing number of people. Its use is notably increasing but would still take a while before it can favourably contend with other currently available financial systems.