Huobi Group announced the launch of the Huobi Chain public testnet, an open-source public blockchain designed to provide a global, blockchain-based, digital financial infrastructure for assets. The high-performance decentralized finance (DeFi) chain is now live for beta testing.
Huobi Chain, which was created in partnership with technical development partner Nervos, provides financial organizations with a regulator-friendly blockchain framework for deploying DeFi services and applications, including their own blockchains, tokenized assets, payments and identity verification, lending services, decentralized exchanges, and more.
“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,” said Ciara Sun, VP of Global Business at Huobi Group. “With Huobi Chain, we want to provide the decentralized framework that facilitates industry-wide collaboration, which is critical to the widespread adoption of DeFi.”
Huobi Chain adopts a flexible governance model based on a variation of the Delegated Proof-of-Stake (DPoS) consensus algorithm to encourage increased collaboration between regulatory agencies and the private financial sector. This flexible design enables Huobi Chain to support regulators as well as companies on the blockchain through unique features such as regulatory nodes that allow regulators to contribute as validators to the network.
Verification of industry-standard identity protocols such as Know Your Customer (KYC) ensures the network meets the requirements of Anti-Money Laundering (AML). Huobi Chain also uses a Decentralized Identifier (DID) system to provide its network with verifiable, decentralized digital identities, making compliance and regulation across borders easier to achieve on a scale.
Huobi Chain was designed for the financial services industry and is fully open-source to provide the necessary flexibility for open financial markets. Its customizable DeFi service protocol enables users and third-party developers to build financial applications tailored to their specific needs and use cases.
The high-performance architecture of Huobi Chain is designed to support high-volume transactions which are critical to the financial services industry. Features such as cross-chain interoperability, multi-asset support, smart contract capability and multi-and-side architecture also provide a highly flexible, globally scalable framework for banks and financial institutions.
Earlier this month, Huobi has joined the Klaytn Governance Council; an alliance of international institutions responsible for the development of the ecosystem.