Huobi, a leading crypto exchange, announced on Saturday the launch of the public testnet of its proprietary blockchain.
Developed in partnership with Nervos, the blockchain will be utilized for offering decentralized finance (DeFi) services, providing a framework for financial organizations to deploy such services and applications, including their own blockchains, tokenized assets, payments and identity verification, lending services, and decentralized exchanges.
Commenting on the development, Ciara Sun, vice president of global business at Huobi Group, said: “DeFi has become one of the most promising applications of blockchain technology but its future requires both sides—regulators and enterprises—to work together to establish the standards and guidelines of the new decentralized economy.”
“With Huobi Chain, we want to provide the decentralized framework that facilitates industry-wide collaboration, which is critical to the widespread adoption of DeFi.”
Targeting banks and financial institutions
The beta version of the public blockchain has been rolled out within seven months of the commencement of the partnership between the two companies.
Dubbed Huobi Chain, the blockchain offers a flexible governance model based on a variation of the delegated proof-of-stake (DPoS) consensus algorithm.
In addition, to provide verifiable decentralized digital identities on its network, Huobi Chain is utilizing a decentralized identifier (DID) system, making cross-border compliance and regulation more easily achievable at scale.
To maintain the transparency and flexibility needed for the financial market, the blockchain has been kept open-source with customizable DeFi service protocol.
With features like cross-chain interoperability, multi-asset support, smart contract capabilities, and multi-and-sidechain architectures, both Huobi and Nevos are targeting banks and financial institutions that are considering entering the DeFi ecosystem.
Known for running one of the widely used digital asset exchanges, Huobi is also expanding its business in the industry by launching services like crypto brokerage and white-label solutions.
“By providing the infrastructure to make financial services more transparent, inclusive, and efficient, we want to help create a more equitable economy where wealth is accessible to all,” Sun added.