Huobi Chain will allow authorities to develop DeFi applications

The Huobi Exchange announced on Saturday that its own network, Huobi Chain, was successfully left on the testnet. The new blockchain was developed in collaboration with the protocol layer 1 provider Nervos.

Huobi said the new network will allow companies and regulators to set rules for the emerging DeFi space.

“With Huobi Chain, we want to provide a decentralized framework that facilitates industry-wide collaboration, which is essential for the widespread adoption of DeFi,”

said Ciara Sun, Huobi vice president for global affairs.

Financial services entities, including banks, will be able to use Huobi Chain to develop DeFi applications that comply with KYC / AML legislation. These procedures are integrated from the beginning into the blockchain, according to the company’s statements.

Huobi Chain uses DPOS

The technology would allow regulators to maintain record surveillance through the delegated proof-of-consensus algorithm (DPOS). A decentralized identification system (DID) allows users to create identity profiles that can be accepted and verified by regulatory authorities in multiple jurisdictions.

Huobi aims to use the blockchain in areas such as issuing tokenized assets, payments, identity verification and loans.

Huobi Chain will support several cryptocurrencies, but the native token of the Singapore exchange will be the only token utility in the protocol. Support for other types of digital assets will be added over time.

The Huobi native token is trading around $ 4.73.

The launch of the main network of Huobi Chain will take place later this year. A Huobi spokesperson said the company has not yet begun discussions with banks or other financial institutions. This will be the next step after the network successfully passes the public beta.