The Chinese Bitcoin exchange Huobi plans to build a new crypto exchange based on the cryptocurrency EOS. This is to happen via their mining subsidiary Huobi Pool. The world’s first EOS exchange is scheduled to start in the first quarter of 2019.
The fact that the crypto market is still dominated by the industry leader Bitcoin is not only reflected in the market capitalization. For the big crypto exchanges, Bitcoin has mainly served as an exchange partner for the “smaller” coins and tokens. Singapore-based crypto-exchange Huobi is now planning a platform that is all about EOS. The Huobi Group announced this on December 29th in a press release.
Behind the project is the mining subsidiary of the Exchange, Huobi Pool. The creation of the EOS exchange is a “logical step” in the expansion of the EOS ecosystem:
“As an EOS supernode, Huobi Pool has put its environmental development at the top of its list of priorities,”
Cao Fei, CEO of Huobi Pool, said in the press release.
Huobi Pool is the largest block producer of the DPoS-based EOS network. EOS aspires to be a kind of decentralized operating system capable of handling up to one million transactions per second. This should be made possible through the delegated-proof-of-stake consensus mechanism. In this 21 selected block producers decide on the state of the network.
EOS course is so far unimpressed
While EOS is highly favored by the Chinese government and regularly cites its crypto rating, critics are rubbing shoulders with the DPoS mechanism. Last White block EOS has scrutinized and found that expectations and reality as yet diverge at EOS — both in terms of potential TPS and in terms of decentralization aspect. Whiteblock also criticized the role of block producers acting as middlemen in the network. As a result, these not only formed a central attack vector for hackers; Furthermore, due to a lack of insight into the actual computing capacity of the block producer, it is not certain that the EOS token maps this one-to-one.
On the day of the announcement of the EOS Exchange, the EOS price initially rose more than five percent to $2.77. However, the price gains did not last 24 hours. Currently, the market of the fifth largest cryptocurrency is again below the $2.7 mark.
Author: Marko Vidrih
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