South Korean crypto startup Bithumb is introducing an “exchange-as-a-service” platform built on its new blockchain.
Revealed on November 6, the exchange stated Bithumb Chain would enable clients and developers to create decentralized finance (DeFi) applications on the open-source blockchain network, which it expects will go about as the backbone to a brand new financial ecosystem.
The firm is presently working out the network, with a testnet set to roll out by the end of the year and a mainnet launch expected next quarter.
Bithumb Global co-founder and managing director Javier Sim said that the new blockchain would highlight a “revolutionary consensus model,” alluding to what the public statement portrayed as an OBFT hybrid consensus mechanism. He refused to share further subtleties, however.
Bithumb representatives further revealed that the organization is seeking a patent around the mechanism, though the plan is to completely open-source the code before 2020. They said that the consensus algorithm would use “verifiable random function,” comparing it to Algorand’s protocol, and Byzantine Fault Tolerance.
VRF is a framework where a function confirms its output publicly, while BFT alludes to the Byzantine generals’ concern, wherein one must arrive at agreement among disparate actors working in a trustless domain. BFT guarantees that the framework will keep working—regardless of whether a few of the participants are working against it.
With Bithumb Chain, the firm tries to exploit its unknown protocols with an assortment of administrations, including exchange-as-a-service, which would enable clients to set up their own decentralized exchange.
Bithumb Chain could contend with other crypto exchanges’ custom chains, Sim stated. Binance Chain, Binance’s public blockchain, rolled out in April and is currently home to its BNB token and Binance DEX, a decentralized exchange.
Bithumb’s announcement comes following The Korea Times revealed that entertainment group IOK is moving to get a significant stake in the exchange. IOK is hoping to convert a bond in Bithumb’s biggest investor, Vidante, by next year.