Huobi Pro, the Chinese crypto exchange, yesterday that it plans to produce blocks on the EOS blockchain. Singapore-based Huobi becomes the latest exchange to apply for candidacy to become an EOS supernode.
Huobi Pro Candidate for EOS
On Twitter and in a live stream event called the ‘EOS Supernode Party’, the team revealed that they applied to become the next EOS supernode. EOS works sort of like Ethereum in that it offers an ecosystem for dApp development and deployment but it runs on a proof of stake consensus model. This differs from Ethereum’s proof of work mining in which the hash power is given by the number of tokens held or staked by each user or node.
The benefits are that it stops mining monopolies from governing the network but the problem is that it does lead to centralization. Delegated PoS varies to some extent in that blocks are created by designated supernodes which change every 21 blocks in a constant approval voting system. This upholds honesty through the network and prevents one individual from having too much control. Those that want to be elected must announce their intention of becoming a supernode, and Huobi just did that.
EOS will be breaking away from the Ethereum system on June 2, 2018. The 21 supernodes baking up the mainnet must be set up by then so applications have been rolling in. Huobi is the largest exchange to apply so far, but other popular organizations have also applied, including ViaBTC, and AntPool.
Other exchanges are also interested in becoming EOS block producers. Bitfinex-who already has an EOS-run exchange, EOSfinex, also announced that it will candidate on April 23rd. EOS has been experiencing positive developments lately which have contributed to a rise in its price. Trading platform eToro announced that it will add the token to its list.
This good news for EOS has helped further the growth of its value. The token is currently trading at just over $15, up 18% over the day. The altcoin has recently beaten Litecoin in the top 25 by market cap and it currently ranks fifth with $12.3 billion. In the past month, EOS has seen an increase of almost 125% from around $6.7 from the previous month.