Bithumb Exchange Launches New Ecosystem for DeFi Applications

The South Korean cryptocurrency exchange Bithumb will launch a new platform running on its own Bithumb Chain blockchain.

At Bithumb Chain, users and developers will be able to create decentralized financial applications (DeFi) based on the open source blockchain. The management of the exchange believes that such applications will create the foundation for a new financial ecosystem.

At the moment, the exchange is developing a blockchain, and at the end of the year will present its test version. The launch of the main network is scheduled for the first quarter of next year.

Bithumb Global co-founder and managing director Javier Sim believes that the new blockchain will be a hybrid mechanism based on the “revolutionary consensus model” of OBFT. According to Sim, Bithumb Chain will be able to compete with other blockchains of cryptocurrency exchanges.

In addition, Bithumb is going to patent its mechanism by the end of this year. The head of the exchange added that the consensus algorithm will use a “provably random function”, which will give it similarities with the Algorand protocol and the Byzantine consensus. The exchange intends to use the Bithumb Chain along with various services, including the “exchange as a service” service, which will allow users to create their own decentralized exchange.

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Recall that last month Bithumb launched a platform in Russia. The exchange management is interested in the Russian market, considering it one of the most promising areas.