In Deloitte’s 2018 Global Blockchain Survey, interoperability and compatibility were cited as two of the most pressing problems for the adoption and proliferation of decentralized ecosystems.
To put it simply, the technology was incredibly capable, but it wasn’t prepared to operate in a collaborative ecosystem.
Increasingly, that sentiment is a thing of the past, something that became even more apparent when major cryptocurrency exchange, Huobi, continued its expansion into decentralized finance by adding support for MakerDAO and Compound on Huobi Wallet.
Consequently, Huobi Wallet, a multi-chain cryptocurrency wallet, will support all tokens and DApps operating on these platforms.
Expanding DeFi Accessibility
Not only does move increase usability, functionality, and interoperability for blockchain technology generally, but it’s a boon for decentralized finance (DeFi), a subset of the financial services industry that’s leveraging blockchain technology to provide transparent and inclusive financial products.
However, until now, DeFi accessibility has been lacking. As Compound founder and CEO, Robert Leshner, notes, “Decentralized, transparent applications are the future of finance and will lead to a wealthier, more connected world. But so far, DApps have been difficult to access and use.”
With Huobi Wallet, users will have unprecedented access to a cadre of DeFi services, which could increase participation in the burgeoning ecosystem.
Livio Weng, CEO of Huobi Group, identified this as one of the intentions behind their recent addition of DeFi platforms.
“We think blockchain technology has great potential not just for cryptocurrency but also in providing better overall financial services and products to the public,” he said. “Both Compound and MakerDAO share our vision and we’re happy to add support for them.”
For example, Compound is an open-source, autonomous protocol that equips developers to create new financial applications, and the platform’s cTokens and DApp infrastructures are now compatible with Huobi’s wallet infrastructure.
Meanwhile, MakerDAO provides a variety of cryptocurrencies and decentralized applications that facilitate finance in the digital age. Huobi Wallet will support the organization’s decentralized stablecoin, collateral loans, and community governance, and MKR token.
The platform’s governance is dictated by smart contracts and code, and it serves as a contrast to the top-down financial services available today.
Promoting the Future of Finance
Huobi’s support for DeFi platforms continues a trend for the company, which has made a foray into blockchain-based financial networks. Just two months ago, Huobi Group partnered with Nervos, a layered blockchain network developing a public blockchain for DeFi services.
They intend to create Huobi Finance Chain, a blockchain platform that will serve as a regulator-friendly financial blockchain that empowers enterprises and institutions to build and deploy additional blockchain services.
With users based in more than 130 countries, Huobi’s reach is extensive, and its efforts to bring together different initiatives to create better ecosystems is indicative of the growth and development that defines the blockchain space in the latter part of 2019.
While this has profound implications for companies in every industry, the financial services sector is especially poised for disruption. By partnering with Compound and MakerDAO, it’s evident that Huobi intends to be at the forefront of this movement.