Huobi Chain – the public blockchain launched by cryptocurrency exchange firm Huobi Group – is teaming up with Nervos to become completely open source.
This means that the high-performance blockchain unveiled earlier this year will be publically available to developers of all stripes.
According to Huobi’s CEO and founder Leon Li, being the first “regulator-friendly” blockchain makes it “well-positioned to become a top financial blockchain”.
What the Huobi Chain and Nervos partnership means
Huobi Chain teaming up with Nervos to go open source means that anyone can track the project’s progress on GitHub. Blockchain developers can build on it and regulators can access the code at any time.
As a technical blockchain partner, Nervos has worked with Ethereum, the imToken ETH wallet, and the Sparkpool ETH mining pool. The company has also contributed to Bitcoin core protocol research and development.
The move towards open source also shows Huobi’s commitment to being a decentralised network from the get-go.
“Since the start of this project, our goal was to create an inclusive ecosystem where all stakeholders from developers to regulators can collaborate and leverage the full potential of blockchain technology,” said Li.
“In sticking to that vision. We’re now opening the code and inviting the greater blockchain community to help us shape and build the future of decentralised finance.”
How does Huobi Chain work?
By being regulator-friendly, Huobi Chain aims to appeal to financial institutions, enterprises, and exchanges. It will allow them to achieve multiple goals, from deploying their own blockchains to tokenising assets and offering decentralised financial (DeFi) services.
It will be based on the customisation of existing open source components including Muta, Overlord, and nervos-p2p. It will also be fully optimised to allow for a wide range of financial services and apps, from stablecoins and real-world payment services to decentralised exchanges.
Huobi Chain will also offer smart contract capabilities and sidechain architecture to make it both flexible and highly scalable.
“Decentralised finance is an emerging field with massive untapped opportunity,” commented Kevin Wang, co-founder of Nervos.
“Innovation is not possible without collaboration, which is why Nervos operates on open source principles.”
What makes it regulator-friendly?
Huobi Chain is regulator-friendly by design in that it allows for regulators to contribute to the network as validator nodes. The chain also promises to implement KYC and AML requirements so that regulated financial institutions can work with it.
Mr Li explained: “If major banks and financial institutions are to fully embrace and adopt permissionless blockchain technology, we need to create a safe and secure environment that makes it easier for them to transition their products and services to the blockchain.”
“By ensuring full regulatory compliance, Huobi Chain is well-positioned to become a top financial blockchain, further strengthening Huobi Group’s position as the global leader in the blockchain industry.”