2021-07-08 16:05:56
HECO: Decentralized Solutions for Centralized Exchange Issues
The technical and resource advantages helped the centralized exchanges quickly take over a large share of the market. However, weak decentralization has become a serious problem for their further development.
To overcome this obstacle, Huobi ECO Chain launched node elections to create a truly decentralized ecosystem. To ensure stability, speed and energy efficiency, HECO has entered a new era of decentralization.
Revolutionary "Node Election" From HECO
In 2018, EOS held a "node election" that rocked the entire crypto world. For a while, “supernodes”, “masternodes” and similar terms have become very popular in the blockchain community. EOS has attracted over 50 blockchains around the world.
Today, the HECO ecosystem has made itself known. Despite the fact that HECO increased the entry threshold of validators to 5000 HT, introduced mandatory KYC, there was still a queue of people willing to participate in the "node elections". HECO has received over 300 applications from companies and individual investors around the world.
Recently, NECO has entered into partnerships with 11 platforms, including CoinMarketCap, Signum Capital, Animoca Brands, Coin98, Allnodes, and other market leaders. With the help of such teams, HECO “node election” has brought decentralization to a new, international level.
According to the rules, there are only 22 masternodes in the HECO ecosystem - 11 main nodes and 11 alternatives (candidates). Only 11 nodes that received the most votes can become the nodes of the HECO ecosystem, from 12 to 22 become "spare" nodes.
Among a large number of participants, there are already candidates who will form the basis of the future HECO ecosystem. Lightnet 、 Allnodes, Coin98, MDEX, and CoinWind earned the favor of the voters.
HECO Interacts With Nodes in a Unique Way
Different networks have different principles of operation, but the HECO platform emphasizes honesty and transparency in the matter of node selection.
Realizing that the main motivation is to generate income, the HECO ecosystem offers higher income from nodes, and this is one of the reasons for the large number of participants. According to the rules, 50% of fees for all nodes in the HECO network will be distributed equally among each of them, 40% will be distributed according to the number of HT blocked on 21 leading nodes, and 10% will be distributed in proportion to the blocked HT of all participants.
In addition to the income from the nodes, election participants can also receive good rewards. According to the rules of “node election”, the remuneration is calculated as the ratio of the collateral participating in the HT elections to the total amount of HT. The ratio in the range of 70-100% is calculated automatically. Of course, all collateral HT can be freely withdrawn, the approximate withdrawal period is 3 days.
According to Kingdata, the average APY of the current 11 companies stands at 16.5%, well above the APY of many DeFi and APY pools deposited on lending platforms. Among them, APY Hashed accounted for 19.82%, Animoca Brands - 19.11%, and CoinMarketCap - 18.98%.
The team is confident that real high returns will attract more institutions and users to participate in node elections, which in turn will drive the development of the HECO network.
The future of the blockchain, which is still at the stage of rapid development and the search for new well-known and international partners, is effectively guaranteed by the HECO decentralization process. The development of the idea will make the HECO ecological chain more popular among users in the near future.
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