Huobi Cryptocurrency Exchange Wants to be Decentralized
This Singapore based platform has plans to make investments of $100 million to build the Huobi chain. Once this project has been completed, Huobi is in the plans to migrate the operations to this blockchain. This is according to a statement which was given by the company.
Huobi is in the in the quest to become a decentralized autonomous organization. This is where the traditional management structure is replaced with the community-based decision making and also code. Therefore, no third party is required in the verification of financial transactions and also no central entity controls the entry of the members in the organizational network.
The statement said;
“By building a public blockchain, Huobi is migrating from a centralized corporation to a decentralized one that’s run by the communities.”
DAOs have been a fixation of the various blockchain based enthusiasts from 2013. Although some of the projects have been involved in an experimentation with the idea, the first idea was a venture which was called The DAO. This raised close to $150 million in the ICO in the year 2016 and lost close to $50 million just after it was hacked. Losses were, therefore, reversed in the week which followed in a decentralized bailout which was the source of the Ethereum blockchain split.
The largest cryptocurrency exchange called Binance in March declared that they were ready to launch a decentralized trading platform. Therefore, this is meant to co-exist with the centralized exchange. Decentralized exchanges require more computing power for the various jobs in the verification and the recording of trades. Therefore, these are slower and also have higher fees more than the centralized platforms.
Currently, the move is still in its early stages. Huobi just commenced the recruitment of a team which was to build the blockchain and also the plans for it to last close to 18 months. Therefore, the first step will involve the migration of some of the various decision making processes to the network. For instance, the community can make a decision for tokens to get listed on the exchange. This is according to Huobi project director, Gordon Chen.