The cryptocurrency exchange Huobi, with a trading volume of over $1bn, has announced plans to move its operations onto the blockchain and become a decentralized autonomous organization (DAO).
Announced in Singapore on Wednesday, the Huobi Chain project will see the exchange’s cryptocurrency trading move from centralized servers onto a distributed ledger format.
As well as value transfer, Huobi Chain will reportedly also be used as a platform for the exchange’s other products and services, including securitization and fundraising; and will be open for both individual and institutional investors.
Although centralized companies, such as Coinbase and the present Huobi platform continue to take the lion’s share of the sector’s trading volume, the framework of decentralized exchanges makes them harder to hack or steal from because there is no single point of vulnerability.
Back in March, Huobi’s main rival, Binance said it was also planning to move towards a decentralized system of operations.
Huobi, which will gradually migrate onto the blockchain as it develops, has initially invested 20m Huobi tokens into the project, worth around $110m according to CoinMarketCap. As it progresses, Huobi has said that a percentage of its annual revenue will also go towards the project’s development.
Although an exact roadmap for Huobi Chain has yet to be specified, the exchange has divided the project’s development into ten milestones. Code will be open-sourced after the completion of each milestone, allowing developers to participate at various stages of the project’s development.
Therefore, stating that buying into Huobi Coins would be a great opportunity.
Especially since Binance has seen a 16X rise in the past 6 Months.
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