Huobi Group Launches Regulator-Friendly Financial Blockchain In Public Beta

Cryptocurrency exchange operator Huobi Group has launched the public testnet of its open-source public blockchain, Huobi Chain.

Huobi Chain, which is now live for beta testing, was created in partnership with technical development partner Nervos. It provides a regulator-friendly blockchain framework for financial organizations to deploy decentralized finance (DeFi) services and applications, including their own blockchains, tokenized assets, payments and identity verification, lending services and decentralized exchanges, among others.

“To encourage increased collaboration between regulatory agencies and the private financial sector, Huobi Chain adopts a flexible governance model based on a variation of the Delegated Proof-of-Stake (DPoS) consensus algorithm,” Huobi said. “This flexible design enables Huobi Chain to support both regulators and enterprises on the blockchain through unique features like regulatory nodes, which allow regulators to contribute to the network as validators.”

According to the company, Huobi Chain’s customizable DeFi service protocol allows users and third-party developers to custom-build financial applications to their specific needs and use cases.

“Huobi Chain’s high-performance architecture is designed to support high-volume transactions critical to the financial services industry,” Huobi said. “Features like cross-chain interoperability, multi-asset support, smart contract capabilities, and multi-and-sidechain architectures also provide banks and financial institutions with a highly flexible, globally scalable framework.”

Currently, the testnet only supports smart contracts written with C programming language but Huobi said that it will provide future support for other programming languages to further expand ecosystem development. Huobi will also continue leveraging its domain expertise in blockchain and financial technology to explore new opportunities to bolster the financial market infrastructure of Huobi Chain.

“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. By providing the infrastructure to make financial services more transparent, inclusive, and efficient, we want to help create a more equitable economy where wealth is accessible to all.”