Posts

What is Huobi Eco Chain (Heco)?

avatar of @esmeesmith
25
@esmeesmith
·
·
0 views
·
3 min read

In this post, we will take a look at what is Huobi Eco Chain and how does it work. This guide should give you brief overview of how Heco chain works.



Introduction

Huobi is a virtual asset trading platform from the China and it has managed to create it's own Ethereum compatible blockchain named Heco. So we will see how it works and what are it's pros and cons.


What is Heco Chain?


Huobi Eco Chain in short is called as Heco. It is a decentralized and cheaper alternative to the Ethereum blockchain. It was designed by the Huobi exchange. The smart contracts developed in the Heco are compatible with the Ethereum and also easily deployed on the chain.

The cross chain functionality of the Heco chain makes it easy for developers to deploy smart contracts and also migrate the assets across the exchanges like Binance smart chain. It also makes the transactions fees lot cheaper than Binance Smart Chain (BSC) and Ethereum.


Now let's take a look at the Pros and Cons of the Heco Blockchain.


Huobi Eco Chain Pros


Let's take a look at some of the pros of the Heco blockchain and how it is being used by developers and for what reasons.

  1. Faster Speed: In order to move the funds in and out of Houbi quickly this chains smart contracts can be used.

  2. Low Transaction fees: Compared to the Ethreum, Heco has the lowest fees.

  3. Compatibility with Ethereum: Smart contracts on the Heco work with the Ethereum blockchain. And it also allows cross chain asset transfers too.

  4. Scalable: Heco chain is scalable and faster even under load conditions which is why it is preferred over Ethereum.

As you can see this chain is designed in such a way that it helps the Houbi exchange developers and the users for faster transaction and scalability.


Huobi Eco Chain Cons


Though this chain offers a lot of good features there are some issues with this chain too. So let's take a look at what are some of those features and their issues.

  1. Currently limited international dApps and DeFi makes use of them. So the current usage of it is limited to chinese users.
  2. Heco is also centralized in a way as it is designed by private chinese company and it's trust factor is similar like Binance smart chain. Any day closure or rug-pull type.

As of now the adoption from the international community for this chain is extremely low due to it's private chinese infrastructure. So despite being decentralized less amount of developers and international business trust this chain.


What projects are making use of the Huobi Eco Chain?


There are some of the DeFi and the dApps projects who are making their projects on the Heco chain. Below is the short list of some of those projects.

  • Starlink (decentralized search engine)

  • Coinwind (Defi smart mining)

  • Pickfinance (decentralized smart mining)

  • Lendhub (debit and credit protocol)

There are many other chinese DeFi and financial projects are being used partially or completely on this chain.


Conclusion


For those of you who are making use of the Huobi exchange and want to make use of the smart chain for low cost transfer fees for assets then making use of this chain is reasonable. However considering it has it's red flags so unless you really are venturing into the chinese DeFi market or the Chinese smart chains for specific purpose, I'd be cautious of this chain.

Posted Using LeoFinance Beta