Huobi crypto exchange recently announced the public testnet launch. It launched its open-source, decentralized finance (DeFi) blockchain known as Huobi Chain on February 29. The exchange is striving relentlessly to offer a regulator-friendly infrastructure to serve financial services companies. Eventually, it will enable these companies to deploy applications in many financial-related sectors.
Huobi Chain comprises of a flexible governance model that supports regulators and enterprises. It also enables the regulators to contribute to the network via unique regulatory nodes based on a delegated proof-of-stake consensus.
Additionally, the implementation of the Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols is complimented by a Decentralized Identifier system. That system offers verifiable digital identities on the network.
For the case of DeFi, the network needs regulators and enterprises to set up standards together for it to thrive. Ciara Sun, the Huobi Group vice president of global business, said:
“With Huobi Chain, we want to provide the decentralized framework that facilitates industry-wide collaboration, which is critical to the widespread adoption of DeFi.”
The Huobi Chain’s infrastructure supports high-volume transactions needed to buy financial services. Also, its proprietary asset management capabilities offer support for multi-asset and cross-chain interoperability.
It has been meticulously developed to interact with a massive variety of decentralized and centralized networks via support for user-deployed smart contracts and third-party sidechains.
The chain also supports popular assets, including Ether and Bitcoin, together with Huobi-issued assets like the Huobi Token that will act as the sole utility token on the network. Based on previous reports, decentralized finance is just now starting to realize its full potential. Notably, many finance-related sectors are adopting DeFi protocols to enhance their services.