Huobi, a crypto exchange headquartered in Singapore, announced that it will join the BitTorrent Chain (BTTC) ecosystem and support the development of a Layer 2 network on BTTC. The collaboration will promote an on-chain open financial system.
This partnership will allow users to build decentralized applications (dApps) anywhere and will also provide a cost-effective development and fast setting for dApps.
What is BitTorrent?
BitTorrent Chain is a decentralized peer-to-peer network that facilitates file and data sharing. It allows users to buy and sell bandwidth using the BitTorrent Chain Token (BTTC), a TRC-10 token created on the TRON network. Users are incentivized with BTTC. The platform allows users to pay for increased download speed while operating on a P2P model. As the network has become more decentralized since the addition of BTTC to the business model, BitTorrent Chain is now considered one of the largest decentralized peer-to-peer communications protocols.
The platform connects users from around the world to a single system for sharing files, data, and bandwidth. Participants in the system are classified as seeders or peers. Seeders are users who have already downloaded the file and can share it with other network participants. Peers download files from multiple seeders in partitions, making the download time faster. Users can pay for bandwidth and faster download speeds using BTTC tokens, which are paid to other peers in the network that offer their excess bandwidth. The system uses a requester and provider model, with requesters buying more bandwidth, and providers sharing their bandwidth in exchange for BTTC tokens. This model ensures faster download speeds and efficient sharing of files and data.
Before it became part of the crypto industry, BitTorrent was originally launched in 2001 to create the largest peer-to-peer platform for sharing data and files. Its founder,s, Bram Cohen and David Harrison, sold the company to the Tron Foundation in 2018.
Below is short video about BTTC.
Huobi is a major crypto exchange that is focused on the Asian markets. It was founded in 2013 in China but was forced to relocate due to stricter regulations in the country. It was incorporated in Seychelles and moved to a new headquarters in Singapore.
The company has recently been in a lot of FUD.
Will it be Beneficial to the Crypto Space?
We usually associate peer-to-peer and decentralized to blockchain and crypto technologies, but BitTorrent was the one that popularized it. Users used to share music, videos, and files via BitTorrent. It became so popular that Internet service providers were forced to throttle down or block connections from the platform. It also has its share of controversies which were mainly due to copyright infringements. Nevertheless, it was a symbol of freedom to choose.
With the advent of cheap streaming services like Netflix, sharing pirated videos became unnecessary. Incentivizing users with crypto tokens is an interesting business model. It can be likened to play-to-earn games, but this time it could be described as a share-and-earn model.
The partnership between Huobi and BitTorrent is not surprising, since Tron’s Founder Justin Sun is also an adviser for Huobi. There are still no details regarding the development of a BTTC-based layer 2. But the collaboration between a major exchange and the godfather of peer-to-peer and decentralized protocols is something to look forward to.