Famous South Asian Cryptocurrency exchange Huobi has announced to launch a public blockchain system to develop a “next generation financial protocol”.
Huobi provides digital asset trading products for investors. The cryptocurrency exchange giant announced on Wednesday its plan to create the company’s own open source blockchain protocol. In order to create a decentralized autonomous organization (DAO) the company will gradually be migrating its operations to a decentralized platform and then automate it using smart contracts.
According to Coindesk, the Singapore giant has already announced an offer of $166 million for its own blockchain creation. Huobi Chain product Director Gordon Chen said “The future will need a new type of financial system” but “going forward we’re going to do this gradually”. The blockchain would be a platform to participate in fundraising and vote for the tokens that should be listed on Huobi. The company eventually plans to migrate its system to the blockchain platform. Chen also confirmed that governance is the first process that will be migrated to the blockchain system.
Currently, Huobi’s centralized trading platform is the third largest in the world, handling a daily volume of approximately $1.1 billion. The company has already started seeking the right talent to develop the blockchain platform and will initially invest about a $100 million worth of fund to start with. In the later stage, the company plans to create a Decentralized cryptocurrency exchange (DEX) that will allow it’s users to trade without holding their coins in their wallets which will keep hacking attack at bay. This, however, requires high levels of efficiency and security.
Incidentally, Huobi is not the only cryptocurrency company to move its operations into blockchain system. Binance, an International cryptocurrency exchange company has already announced to do so in the month of March.
Leave a Comment