Tanya Abrosimova
Independent Analyst
- Bithumb reveals plans to enter the industry of decentralized finance.
- Bithumb's proprietary blockchain will use an exchange-as-a-service business model.
The South Korean cryptocurrency trading venue Bithumb plans to launch proprietary blockchain platform that will be based on exchange-as-a-service business model, CoinDesk reports.
The platform called Bithumb Chain will allow users and developers to create decentralized financial applications (DeFi) with open source code that will eventually create a foundation for a new financial ecosystem.
Currently, the new blockchain is at the development stage. The testnet is scheduled for launch by the end of the year, while the mainnet will go live in the first quarter of 2020.
According to Javier Sim, co-founder and managing director of Bithumb Global, the new blockchain will be based on a “revolutionary consensus model,” called OBFT hybrid consensus mechanism. The company plans to patent this mechanism, though Sim refused to reveal more details.
The company wants to use Bithumb Chain, to capitalise on its technologies and know-how protocols that are yet to be developed. The proposed exchange-as-a-service will allow Bithumb to compete with other cryptocurrencies that launched their proprietary chains.
Notably, the head of the US-based cryptocurrency exchange Brian Armstrong noted that the industry of decentralized finances was growing exponentially.
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