One of the leading cryptocurrency exchanges and the most liquid cryptocurrency exchange worldwide, Huobi is now the first top exchange to run a Chainlink node towards the improvement of data authenticity and integrity.
According to the exchange’s announcement a few hours ago, it will be undertaking a two-part integration with Chainlink, the market-leading decentralized oracle network. That is, the exchange wants to take advantage of Chainlink’s external adapters towards making its Huobi exchange API available to smart contracts for developers’ accessibility to price data from Huobi Global.
“Huobi Wallet already has extensive experience operating PoS nodes, securing a total of over 10 million dollars in digital assets for projects like ATOM, Ontology, and LOOM. Huobi will bring its experience running secure infrastructure to the Chainlink Network and further decentralize the number of nodes available for oracle data services.”
Binance first provided its data to Chainlink oracles in October last year, but Huobi is now ahead as it runs its own node on the system via Huobi Wallet. This helps to sign Huobi’s own price data which allows users to confirm the authenticity of any exchange data coming from the Huobi Node.
The exchange’s announcement noted that the price pairs to be included at first are BTC/ETH, BTC/USDT, ETH/USDT, and LINK/ETH, as they are highly requested while more are on the way. Huobi explained the reasons for the support of Chainlink network – Chainlink has established itself as the clear market leader in oracles, providing smart contracts with universal access to real-world data, off-chain events, and traditional payment infrastructure.
Last year, a report released by Bitwise noted that Huobi was reporting inflated trading volume, thereby prompting an internal investigation to eliminate possible market makers’ wash trading strategies. Hence, with this new integration, it seems the exchange wants to enhance its credibility after the concerns in 2019.
Being among the biggest cryptocurrency companies in Gibraltar, the integration comes at a time when the country continues to work towards bringing down market manipulation by cryptocurrency companies. In 2019, Huobi partnered with Global Digital Finance (GDF), co-chairing the Market Integrity Working Group with Solidus Labs.