Huobi Announces Plans for a Decentralized Autonomous Organization
Decentralization is the main motivator for many people in the cryptocurrency space. Think back to Satoshi’s vision for Bitcoin as a way to bypass centralized institutions and transact freely on a peer-to-peer basis. Well, we’ve come a long way since 2009 and now more companies are moving to a decentralized autonomous organization (DAO) model.
What Is a Decentralized Autonomous Organization (DAO)?
A decentralized autonomous organization (DAO) is one in which no single entity owns the organization. Traditional management structures and hierarchies are therefore replaced with a code-made organization, running autonomously on smart contracts. Just like a public blockchain, no single entity owns the company and anyone can join.
This is what major-league blockchain asset solutions provider Huobi Group aims to achieve with the launch of their Huobi Chain Project (HCP) and Huobi Chain Superhero Championship Program (HCSCP).
The company has already made a name for itself by building the largest blockchain and digital asset ecosystem around. They have a global trading volume of US$1 trillion and over five million users.
Through these latest initiatives, Huobi plans to migrate towards a self-regulating, “next-generation” financial platform that is completely decentralized in nature.
The Huobi Chain Project
Through the Huobi Chain Project, the company will build a public blockchain. This will allow them to move from a centralized corporation to a decentralized one run by communities. The plan is to roll out an autonomous platform that users can trust, and through which they can raise funds, exchange, and transact.
The network is completely open source so anyone can join and participate. “We firmly believe in a decentralized future,” says Lin Li founder and CEO of Huobi Group.
“The main goal of the Huobi Chain project is to transform a centralized corporation to a decentralized one that’s run by the community. Our dream is for Huobi to run on the public blockchain and become a truly decentralized autonomous organization.”
The program will start with one global leader who’s truly on board with the vision and values of a DAO. Huobi then plans to divide it into 10 milestones, so that anyone around the world can join in and compete for a prize pool. This incentivizes new teams to get involved constantly, at any point, for a chance to claim the reward.
“Upon completion,” Li explains, “all of the code will be open-sourced and we will also gradually migrate Huobi onto this new public blockchain.”
Huobi will fund the project initially by investing some 20 million Huobi Tokens (HT). But the Huobi Chain Superhero Championship is meant to incentivize communities to get involved building the Huobi public chain from the start.
Are DAOs the Future of Corporations?
Whether all companies will move towards this decentralized model remains to be seen. However, the possibility of corporations without CEOs or hierarchies is very real. The DAO model can be applied to any business. Smart contracts can cut out middlemen, reduce transaction fees, increase efficiency, and ensure that terms are met.
So it might not be long before more centralized companies follow in Huobi’s footsteps.
Blockchain for Europe is working with EU regulators to bring about reasonable legislation regarding new technology. Learn...
MaidSafeCoin serves as a token for Safecoin, a decentralized currency for a decentralized storage network. Learn more...
Understanding the growing world of cryptocurrency law will make you a more informed investor and help you...
MaidSafeCoin serves as a token for Safecoin, a decentralized currency for a decentralized storage network. Learn more about it in our guide here.
ABOUT THE AUTHOR
ABOUT THE AUTHOR
Christina is a B2B writer and MBA, specializing in fintech, cybersecurity, blockchain, and other geeky areas. When she’s not at her computer, you’ll find her surfing, traveling, or relaxing with a glass of wine.