In March 2020, amid the restructuring of the company, cryptocurrency exchange KuCoin proposed the internal working of its own public blockchain. The upcoming blockchain, known as the KuChain, will operate in the financial sector and will provide decentralized applications such as DeFi and DEX with a more robust underlying technology environment.
“The performance of the public chain is difficult to meet commercial-level applications. In order to improve the underlying technical environment of DeFi, we are developing a financial public chain - KuChain, to empower the open finance industry and provide services for DeFi and DEX projects,” KuCoin Head Of VIP Relations Alicia Kao noted in a recent AMA.
Regardless of the fact that KuChain is not built to compete with prominent blockchains, such as Ethereum, which is currently a hot spot on the market with its numerous DeFi smart contracts and asset liquidity protocols, the latest public chain of KuCoin in some areas may have a higher performance than Ethereum. From decentralised stablecoins, decentralised lending, decentralised derivatives, decentralised exchanges, and more innovative technologies feasible, KuChain will emerge in every area of financial products.
Further Propel The Market Share
Exchanges are some of the primary proponents of cryptocurrencies' rise in popularity. They play a significant role as the portal to the world of crypto, and many of them have created multimillion-dollar businesses out of it. In 2018, Coinbase, a US-based exchange, reportedly had a revenue forecasted at almost $1 billion. Meanwhile, The Block's crypto news website reported that, as of Sept 30 , 2019, Binance had crossed $1 billion in accumulated profit. Centered on the token buyback structure of the firm, The Block has arrived at that estimate.
The emerging trend of exchange-built blockchain platforms at its heart is an attempt by exchanges to strengthen their roles as market leaders and create a fortress around their respective industries in some way. By building their own blockchain, crypto exchanges will be able to expand their market share and run more effectively. An increasing number of cryptocurrencies won't stop anytime soon as the blockchain and crypto-currency space continues to develop. Hence, the resulting impact of more crypto assets is that the business of running an exchange will enjoy greater demands.
While a lot of questions have been raised, and are yet to be answered, by the KuChain launch, it is an exciting juncture to be in as this cryptocurrency behemoth makes another play for more dominance in the community. Michael Gan, Founder and Chairman of KuGroup, has a positive spin on KuCoin looking to grow maintaining the company it is helping build the entire community and ecosystem with its heading.
“KuChain proposes a permission-free decentralized financial framework. Through proper abstraction and reasonable stratification, KuChain will enable users to get rid of the complexity of the base layer of blockchain, covering on-chain, off-chain, and all kinds of use cases. It will fit into various front pages with high scalability that allows consistent evolution, so as to help all types of developers build their own chain and service in the system. KuChain will support many high-performance Dapps, and our decentralized exchange KuDEX is very likely to be the first one,” he concluded.