Huobi Goes For DeFi With New Native Blockchain Testnet

One of the leading crypto exchanges globally, Huobi, has made an announcement on Saturday. This announcement is in regards to the public testnet that’s being launched on its proprietary blockchain network.

Ciara Sun: Both Regulators and Enterprises Are Critical

Through a partnership with Nervos, the blockchain was developed and will now be used for decentralized finance (DeFi) service offerings. This will provide a framework for financial organizations to publish various applications and services. These services include things like tokenized assets, lending services, identity and payment verification, going all the way to their own decentralized exchanges and blockchain networks.

Ciara Sun, the Vice President of the Huobi Group’s global business, commented about the matter as a whole. She explained that DeFi stands as one of the growing applications of blockchain technology that holds the highest amount of promise. However, Sun explains that there needs to be both enterprises and regulators on either side to ensure a future for it. The two groups will need to work in tandem to establish guidelines and standards for the new world of decentralized economies.

Compliance Is King

She went further, explaining that the Huobi Chain will serve as a decentralized framework. This framework will help facilitate collaboration on an industry-wide scale, something that SUn considers paramount to DeFi’s widespread adoption.

It’s only been seven months since Huobi and Nervos entered their partnership, with the beta version of their public blockchain already being rolled out. This network, dubbed the Huobi Chain, will offer a governance model with built-in flexibility. The model itself is based within a delegated proof-of-stake (DPoS) consensus algorithm, or rather a variation thereof.

Many Modern Features

The Huobi Chain was built with cross-border regulation and compliance in mind. With the idea of making this possible as it scales up, the Huobi chain has a range of features to allow for it. Two key features of this is the provision of decentralized digital identities that are capable of being verified, as well as the use of a decentralized identifier system, or DID.

In order to maintain desired levels of flexibility and transparency that’s needed for this financial market, the network itself has been kept open-source. Furthermore, the DeFi service protocol has been built to be modifiable.

The Huobi Chain offers an array of features. It holds things like multi-asset support, cross-chain interoperability, multi-and-sidechain architectures, as well as smart contract capabilities. Both the developers of this blockchain, Nervos, and Huobi, targeted financial institutions and banks when it comes to entering the DeFi ecosystem.