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The HECO Chain (Heco, Huobi ECO chain) is a decentralized, eco-friendly blockchain that was launched in December 2020 by Huobi Group. The consensus mechanism used in Heco is called HPoS. It combines the security advantage of Proof of Work (PoW), and the energy efficiency of Proof of Stake (PoS).
Heco is an EVM-based network with a cross-chain asset transfer functionality and lower gas fees. Heco’s EVM enables developers to smoothly port their dApps from Ethereum to the Heco ecosystem and offer low-cost transactions to the dApps users.
HECO Chain uses the hybrid HPoS consensus mechanism, which offers the benefits of both PoW and PoS. This approach ensures low transaction costs, low transaction latency, and a high degree of transaction parallelism.
The consensus supports up to 21 validators. All active validators create blocks according to predefined rules. If a validator fails to create a block in time in its own round, another active validator will be randomly chosen. At least n/2+1 (n is the number of active validators) active validators work properly to ensure that the blockchain works correctly. To become a validator, you must submit an application and wait for other active validators to vote on it. Any address can stake on an address that is eligible to become a validator, and once a validator's bid volume enters the top 21, it will become an active validator in the next epoch. For any account, any number of coins can be staked to the validator, and the minimum staking amount for each validator is 32HT.
The Heco network supports a metatransaction feature to reduce transaction costs for users and transaction costs for dApp developers as well as dApp users. But in order to take advantage of this discount, users as well as developers of the decentralized applications should hold some HT tokens in their wallets. This helps to increase the market value of a token.
HECO Chain is compatible with the Ethereum Virtual Machine (EVM) allowing smart contracts to be deployed and executed in the same way as on the main Ethereum network. This ensures that applications built on the HECO Chain interoperate fully with many other blockchains using the Heco asset bridge.
HECO Chain serves as a platform for creating decentralized applications in different areas. The platform deploys EVM to provide a flexible and scalable environment for developers.
In order to provide users with low-cost, multitoken, secure and fast interconnect services, HECO Chain has launched Stars Bridge, which supports multiple exchanges of ERC-20 and HRC-20 tokens (the Heco token standard). The protocol supports trading and has its own native HT token, which is also used as the primary payment method for HECO Chain network fees.
To interact with Heco, wallets like Metamask or the native mobile Huobi Wallet can be used. There are also third-party wallets for storing HT tokens. An important feature of Heco is that storing the native token on the wallet reduces the Heco fees for the transactions on the network. For example, if you store more than 5,000 tokens, the discount is 65%.
HECO Chain HT holders can delegate their tokens to existing validators by depositing them in the staking. Individuals who deposit their HT tokens receive rewards.
Any HT holder can vote for validators on the HECO website. 1 HT represents 1 vote and can only be given to one candidate. There are 11 primary nodes and 11 candidate nodes in the election; the top 11 candidates in the ranking are main nodes and #12-22 are candidate nodes. Node rankings are updated according to the number of user votes, and rewards are given out every six hours. Users can redeem HT and leave the node voting any time, and redeemed HT will be locked for about three days before they are returned to the user.
If a validator fails to pack blocks 24 times, they lose their income. If the blocks are not packed 48 times, the validator is disqualified.
Huobi Token (HT) is a native token of the Heco chain and cryptocurrency exchange Huobi Global, which was launched in early 2018. HT is a decentralized digital asset originally based on the Ethereum blockchain and had ERC-20 standard, but now it also works on the HECO Chain.
HT has a total supply of 500 million. After the launch, 60% (300 million coins) were distributed to the exchange users and 40% (200 million coins) were left in the reserves. To contain inflation, Huobi allocates 20% of its profits to a token buyback program.
The Huobi token serves two main functions. First, it is used to pay commissions in the Heco network, and second, storing the token in a wallet allows for lower transaction fees.
Also, the token indirectly serves DAO purposes, as there are 21 highest-stake validators involved. The HECO DAO governance rules are as follows - for major proposals, two or more major nodes can initiate a voting decision, with each major node having one vote. The final result must receive at least 51% of the total votes. After the decision is made, the HECO development team executes the results.
The Heco team is basically the same as the Huobi Global team. The founder of Huobi Global is Leon Li. Graduated from Tsinghua University, Li was a computer engineer at Oracle before founding Huobi.
Heco chain was audited by SlowMist in January 2021.
The Heco ecosystem includes over 130 dApps. The biggest AMM in the HECO ecosystem is MDEX, which also operates across BSC and Ethereum blockchains. The platform’s innovative dual liquidity and transaction mining incentive mechanism rewards users with MDX tokens for trading. Another large project built on Heco is Lendhub. It is a debit and credit protocol based on a modification of Compound that provides debit and credit mining capabilities for LHB.
Heco has entered into a long-term strategic partnership with CertiK to provide blockchain ecosystem protection and security support for its business-related smart contracts, including code security audits.
According to the roadmap, a second layer of the network is being developed to improve the blockchain performance. In addition, the team will improve cross-chain interaction. By 2023, support for several popular virtual machines, zero-knowledge proofs and privacy protection, as well as large-scale commercial applications are expected to be introduced.
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Last updated: Aug 22, 2023
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