Under the siege of Uniswap, Sushiswap, and Binance Smart Chain (BSC), Huobi finally couldn’t help but launched its own ecological public chain Huobi ECO Chain (Heco for short), although it was launched 3 later than Binance. Months, there is not even an English version, but relying on its huge investment ecology, Huobi is still very likely to make a lot of moves, and even reverse the negative image of HT.
Almost exactly the same as Binance BSC positioning
According to the official website, Heco is divided into four stages: fire, spark, flame, and prairie fire: the fire stage is mainly to improve transaction performance and reduce transaction fees; the spark stage will optimize the developer tool chain and improve the chain ecology, and the flame stage will launch cross-chain Interoperability agreements and consensus protocol upgrades; the prairie prairie phase will support multiple virtual machines, provide privacy protection capabilities, and multiple signature schemes. The Heco public beta will officially start on December 21.
Almost the same positioning as BSC, Heco also focuses on high-performance transactions at low rates and is fully compatible with EVM. The advantage of this is that it is developer-friendly and can support projects in the existing Ethereum ecosystem including loans, oracles, and wallets. And achieve seamless integration and migration, reducing development costs.
At the same time, Heco adopts the HPOS consensus mechanism, supported by 21 public chain nodes. Miners can become nodes through official review + pledge HT, and distribute rewards in proportion to the mortgage. The rewards will come from the HT handling fee for transactions on the chain-this It is also consistent with BSC’s rule that BNB is used as an on-chain token.
However, slightly different from BSC’s strategy, Heco will also use Layer 2 to improve the efficiency of Ethereum in the future, supplement and empower the Ethereum ecosystem, but this is only a future plan, and it is more an expression of the Ethereum community. Friendly attitude.
Heco’s white paper stated that the nodes of the public chain will be generated through elections. Since the project has not yet been officially launched, the details of the election are not yet known. However, the black boxization of the node evaluation mechanism is also one point that the competitor BSC has been criticized by the public.
At the same time, it is certain that any non-Huobi third party becomes a node, which means that it may get a share of the trading income of Huobi, which will be a lot of money. Referring to the past Huobi Haidax campaign, there is a high probability that mainstream companies/investment institutions (increasing brands) and other Huobi-invested project companies will become nodes.
In addition, although the “public chain” cultivated by centralized exchanges is completely different from the genes of community projects such as Uniswap/Sushiswap, we can also see that the advantages of centralized exchanges as the entrance of legal currency are still long-term. Existing, decentralized exchanges cannot yet completely replace such roles.
Heco emphasized the development focus of “ecologicalization” in many places in the white paper, which may be intended to speed up the currency listing of community projects and provide traffic entrances for high-quality Dapps among them. These high-quality projects are expected to land after running for a period of time. The Huobi main site, which enables Heco and Huobi Centralized Exchange to form a mutual nurturing relationship, and reverse community traffic to the centralized exchange, which is exactly the same as Binance BSC.
After Heco goes online, the price may increase
Although the three major domestic institutions have launched their own platform coins, HT has always been the one with the worst trend. Its market value is only 1/2 of OKB and 1/5 of BNB. This huge gap is surprising. . There is a saying that Li Lin insisted not to make the market for HT and control the price of the currency, but this did not bring a good reputation, but was criticized for being in the internal rat warehouse.
A few months ago, well-known institutions in the currency circle represented by Multicoin were bullish on HT. It was also based on a similar view that the Huobi platform has “high globalization, high liquidity, public chain drainage potential, and high HT return. The characteristics of “purchase rate” and various reasons make HT in a state of “pricing error”. Of course, this kind of optimism is more of a PR work under a cooperative relationship.
The biggest advantage of Huobi is that it has the best investment ecology in the Chinese world. Huobi University has gathered a group of blockchain entrepreneurs. Currently, there are good local public chain projects such as Conflux/Nervos/Nest/ONT. Huobi is the main Of investors, these invested projects will join in new projects. Heco uses HT as the native token on the chain. The “HT pledge lock-up” of nodes may provide certain value support for HT, and even directly detonate the currency price.
The weakness of Huobi is the chaos and weakness of internationalization work. Even at the beginning of Heco’s design, there was not much consideration of overseas communities, and there was no English website and white paper. On the other hand, the low market operation ability made subsequent promotion. It may not be as powerful as BSC. In the case of Huobi’s investigation, the senior executives also doubted whether investing in Heco has the willingness to value the investment collectively.
Can Huobi’s “Middle-aged Crisis” be broken?
As early as the first half of the year, Binance has been preparing for the development of BSC. It officially launched the BSC mainnet in early September. Projects such as BakerySwaph and BurgerSwap have attracted a large amount of traffic to Binance in a short period of time, and directly made BNB prices stand still. Reached a new high this year.
On the other hand, after the hype in July and August this year, as the tipping point of the DeFi concept, decentralized exchanges such as Uniswap did not fall into the altar as the public imagined, but continued to maintain a certain degree of popularity.
According to Coinmarketcap data, Binance’s 24-hour trading volume is US$4.2 billion, Huobi’s is US$1.78 billion, Uniswap’s 24-hour trading volume is US$320 million, and Sushiswap’s figure is US$79 million. It can be seen that the trading volume of the latter two differs from that of traditional exchanges such as Binance Huobi by an order of magnitude, but the gap is not unattainable: You must know that Uniswap’s daily average trading volume was less than mid-June this year. 10 million US dollars, and then it is exponential development.
With the tigers in front and the chasing soldiers behind, the “Shanxi investigation incident” could not be resolved for a long time, and Huobi was even more eager to make changes and use Heco to recreate the traffic entrance. However, at a time when the DeFi market is extinguished and mainstream currencies are soaring, how much influence the Heco layout of Huobi can have on the platform, we need time to continue to observe.
In addition, for a public chain like Heco that does not have a spontaneous and true “community”, it is more like a “company” doing to B business: in the start-up phase, the operator may need to be a public chain Pull high-quality projects, even like Binance, to provide appropriate promotion for the project party, and this promotion method is also easy to attract infamy-because of the collapse of Backery prices, Binance Smart Chain was once saddled with the reputation of “cutting leek” , The project has been publicly pushed by Changpeng Zhao on Twitter.
Therefore, grasping the boundary between the decentralized public chain of the exchange and the centralized brand may become a dilemma in the start-up phase of the public chain, and this dilemma is in the Chinese community with a large number of retail investors and non-professional investors. It may be more serious.
