South Korean crypto startup Bithumb launches "exchange as a service" platform based on its new blockchain.

Announced Wednesday, Bithumb Chain will allow users and developers to create decentralized finance applications (DeFi) on the open source network Blockchain, which he hopes will serve as a foundation for a new financial ecosystem.

The company is building the network, with a testnet ready to be commissioned by the end of the year and a launch of the main network scheduled for the next quarter.

Javier Sim, co-founder and managing director of Bithumb Global, told CoinDesk that the new blockchain will feature a "revolutionary consensus model," referring to what the press release describes as a hybrid OBFT consensus mechanism. However, he refused to share more details.

Bithumb representatives also told CoinDesk that the company was seeking to patent the mechanism, although the plan is to fully open the source code by 2020. However, they said that the consensus algorithm would use a "feature". random verifiable ", which is comparable to that of Algorand. protocol, and Byzantine Fault Tolerance.

VRF is a system in which a function publicly verifies its own output, while BFT refers to the problem of Byzantine generals, in which a consensus must be reached between disparate actors operating in an environment without trust. BFT makes sure that the system continues to work, even if some of the actors are working on it.

With Bithumb Chain, the company is looking to capitalize on its yet unknown protocols with a variety of services, including exchange as a service, which would allow users to create their own decentralized exchange.

Bithumb Chain could compete with custom channels of other cryptographic exchanges, said Sim. Binance Chain, Binance's own public channel chain, launched in April 2019, now hosts its BNB token and the Binance DEX decentralized switch.

The Bithumb news comes days after the Korea Times announced that the IOK entertainment group was preparing to acquire a significant stake in the exchange. IOK is looking to convert a bond from Bithumb's largest shareholder, Vidante, by next year.

Bithumb image via Shutterstock

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