Singapore-based cryptocurrency exchange Huobi on Saturday launched a beta version of Huobi EOS, a decentralized exchange built on the EOSIO technology.
To begin with, the exchange will initially list three major pairs all tied to EOS/BTC, EOS/ETH, and EOS/USDT, with more EOS pairings to follow “after review and screening,” the exchange said. It also plans to add more in the future depending on customer response.
Huobi Pool, a cryptocurrency mining arm of Huobi, announced earlier this month it would list EOS as the base currency to facilitate P2P value exchanges and support high-volume blockchain-based trading.
Huobi, which today announced a rebranding initiative with its US strategic partner, informed beta users that they have to authorize Huobi EOS exchange and activate their accounts before carrying out any internal withdrawals.
Huobi DM Launches Real-Time Settlement for BTC FuturesGo to article >>
Plans for Huobi EOS was announced back December 28. The addition comes roughly two months after the launch of Huobi DM, and EOS was chosen as “sophisticated traders are increasingly looking for a broader range of tools,” Huobi CEO Livio Weng said at the Crypotfrontiers conference in New York City.
EOSIO is an open source blockchain protocol which like Ethereum allows users to run smart contracts and supports crypto applications. Unlike Ethereum however it uses a consensus model called delegated proof of stake, and its developers claim EOS technology eliminates transaction fees and is capable of conducting millions of transactions per second.
The proof of stake model is when mining power in the blockchain is defined by the number of tokens held by a user, or node. The advantages of this are that it prevents monopoly and provides incentive. The disadvantage is that it leads to centralization.
EOS runs on a system called delegated proof of stake, which is similar to PoS but as the name implies delegates decision making and mining power to selected nodes. Blocks are produced by these representatives according to a “continuous approval voting system,” which mandates that new producers go up for election every 21 blocks. These block producers are called supernodes.