Wigwam is the best HECO blockchain crypto wallet

Huobi (HECO) Blockchain Review

HECO is an energy-saving EVM-compatible blockchain that supports decentralized applications (dApps) development through the use of Hybrid Proof of Stake (HPoS) consensus algorithm. Also, HECO chain encourages  development of cross-chain solutions by offering asset-bridging services with Ethereum (ETH), Bitcoin (BTC), and stable coins via HECO Bridge.

Origins and Vision

Due to the slow confirmation times and high transaction fees on Bitcoin and Ethereum platforms, many protocols proposed to solve this problem by offering Delegated Proof of Stake (DPoS), as an alternative to PoS consensus method. But they couldn’t solve the problem without compromising network security.

For this purpose, the HECO blockchain was launched by Huobi CEX in December 2020 as a protocol designed on the Hybrid Proof of Stake (HPoS) infrastructure, which combines Proof of Authority (PoA) and Proof of Stake (PoS). Hence, it provides security and simultaneously ensures low-cost and fast transactions to promote dAppss development.

Key Milestones                                

In June 2021, the HECO blockchain launched its innovative gaming accelerator program that provided tools and documentation for developers  to create successful online games. Later that year, it partnered with companies like Animoca Brands and Coin98 Wallet for effective marketing in the crypto community.

Huobi later announced the HECO Bridge initiative in the same year to facilitate the transfer of digital assets from Ethereum to the HECO network.

Introducing Huobi NFT in November 2021, a suitable marketplace to trade digital art, is another significant milestone of this blockchain.                     

What Consensus Algorithm Does Huobi (HECO) Blockchain Use?

Huobi (HECO) uses an effective Hybrid Proof of Stake (HPoS) algorithm. This mechanism achieves consensus by combining PoA and PoS to ensure security, scalability, and faster transactions. In HPoS, only 21 validators create and confirm new blocks because the network uses the PoA consensus method. Besides, the HPoS ecosystem rewards all transactions validation and network security efforts with new cryptocurrency coins.

How Heco HPoS differs from Ethereum

In Ethereum, anyone can become a validator by investing a minimum of 32 ETH tokens. Also, the network assigns nodes to thoroughly review and confirm any blocks they did not generate personally.

Alternatively, only 21 validators are on the HECO chain. To become eligible, users must submit a proposal and wait for approval from more than half of the network’s active nodes. Anyone can stake to an address that qualifies to create and confirm blocks in HPoS. But it becomes an active validator in the next epoch after its staking volume ranks among the top 21.

How Huobi (HECO) Technically Solved Problems with Scalability, Decentralization, and Speed

Huobi (HECO) makes use of the sharding strategy and effective Hybrid Proof of Stake consensus mechanism to address concerns related to scalability, decentralization, and speed technically.

Sharding splits the chain into portions called shards, which share the workload and, in turn, help the network manage high transaction volumes efficiently.

To ensure faster transaction confirmation, the effective algorithm uses an optimized block generation time. Also, the mechanism decentralizes the network with a range of participants in governance and block validation.

Who are the Main Players in the Huobi (HECO) Blockchain?

These roles are essential in the Huobi blockchain:                  

1. The developers who design and deploy dApps
2. Validators that verify and confirm blocks.
3. Stakers that lock in tokens for network security and stability.

DeFi Ecosystem on HECO

DeFi on Huobi offers lower gas fees than Ethereum with a possibility to transfer and launch dApps from any EMV-compatible blockchain seamlessly with a 3-second transaction finality at a reduced cost.

Huobi DeFi ecosystem offers users crypto exchanges such as “MDEX” or “Elk Finance” and lending protocols like “Filda”, “Channels”, and “Lendhub.” If you want to participate in the HECO DeFi, we recommend using the Wigwam crypto extension, a safe and convenient tool to work with HECO dapps. To start using HECO dapps we recommend instal the Wigwam DeFi crypto wallet.

HECO NFTs Marketplaces

HECO NFT marketplaces offer lower transaction fees to attract artists, buyers, and sellers worldwide.

Popular non-fungible tokens platforms on Huobi include “Fangible” and “Talken”, where traders and digital creators mint and trade assets.

Tokenomics and Gas Usage on Huobi (HECO)

HT token is the gas fee and native token of HECO. Its utilities are as follows:

Low Transaction Fee: Users perform transactions by paying fees inHT native token.

Staking: Users stake HT coins on the network. Those with larger token stakes become nodes that authorize blocks for rewards.

Governance: Users stake HT tokens to participate in the network’s on-chain governance.

Conclusion                            

HECO chain is an open and energy-saving blockchain developed by Huobi that  offers users fast transactions with low gas fees. Its Ethereum compatibility allows developers to create, test, and deploy DApps conveniently.