Huobi Global recently announced that the code for the Huobi Chain, which was developed in partnership with the Nervos Network was now open source. This means that anyone can now track the development of Huobi Chain and he or she will be able to contribute to the development of the code. The testnet is set to launch in Q1 2020 and if everything works out as planned, the mainnet will be launched in Q2 2020.
The Huobi Chain was first announced in July 2019. The focus of the blockchain is on creating the infrastructure need for decentralized finance such as decentralized loan products and decentralized crypto exchanges.
The blockchain utilizes the Overlord consensus mechanism. It will allegedly make it possible to complete thousands of transactions per second and trading delays being only a few seconds long. The blockchain is based on the CKB Virtual Machine that was developed by the Nervos Network. This protocol makes it possible for cross-chain interoperability between the Nervos CKB and the public chain as well as with the side chain.
According to Huobi Global, the new chain will also be compliant with regulatory demands. The company claims that it will be the first blockchain in the financial world that integrated regulatory nodes. These nodes will allow regulators to take part in the network as validators. Besides that, they will be able to supervise the network while also being able to extract data needed for regulatory enforcement.
Additionally, it will feature sidechains that will allow banks and other financial firms to freeze accounts and assets when necessary. The Huobi Group CEO noted that this was necessitated by the fact that banks would only join permissionless blockchains if they could be assured the platforms were safe and secure. This way, it would be easier for them to move their products and services onto the blockchain.
Even China is making allowances when it comes to its blockchain project. The head of China’s digital currency initiative recently promised that China would limit the information it collects from the DCEP project. This is meant to array fears that citizens would be giving up all their financial privacy if they joined DCEP.