Many are wondering what it will take for Hive to make it big. We have a lot that is being developed yet cannot seem to breakthrough. What is holding Hive back? Why is it not mentioned in the same sentence as Ethereum and other blockchains.
One of the biggest advantages to Hive is the base layer is very tight. We are streamlined in the core code. There are a handful of functions the blockchain offers and that is it. Outside account management, posting, upvoting, governance, and rewards, the blockchain doesn't do much. There are no smart contracts which limit what developers can do.
This is likely where we fall short.
Hive's advantage is also a disadvantage at this point. It is something that needs correcting and, incidentally, is being worked on.
Hive is decentralized. Many still take exception to this yet it is the case. At the core level, the Witnesses number over 100 at this time. That is a fair number of node. These are located all over the world which is also helpful.
We also have the consensus nodes. Those are the Top 20 who make decisions for the chain. Here is where the governance essentially resides. They are voted in based upon the stake people have via the powering up process. No one person can control the Witness pool since the distribution of tokens is such that no single person has more than 5%.
In the world of blockchain, this is putting it near the top of the list.
Hive has a great deal of scalability. Also, by keeping the code tight, there is a level of security added. Increasing this is vital since we all know what happens when security is lacking. However, it does limit what can be done on Hive by a great deal.
The primary areas we see this is with smart contracts. There are none available on Hive. Hence, it all has to be developed on the second layer.
It is here where we see the need to build Hive on Hive. What is required is another decentralized system that is tied into the Hive blockchain. This layer will contain smart contracts that can allow for the spinning up of many different things such as communities. There is also the potential for tokens and NFTs.
Essentially, here is where we can incorporate all the stuff Ethereum and other chains are utilizing.
Hive is very good at what it does. It is one of the leading account management systems in blockchain. By having accounts that users can name, along with fast and feeless transactions, the basic features are reliable and quick.
There is also the idea of censorship resistant. This is become a more noticeable issue. As this article is being written, Elon Musk is making noise about buying Twitter and making it open source. Whatever happens there shows how important it is to have a data system that cannot have accounts (or their posts) deleted.
Due to the factors mentioned earlier, Hive's tokens are free from regulation and government control. Since there is no entity behind the blockchain, anything at the base layer is outside that scope. There is no company to bring under the regulatory umbrella. Just think, who would they issue the banking license to?
All of this is paramount going forward. It is also something that needs to be duplicated as a second layer.
So many like control. This will be the downfall. Founder's stake and companies holding a large portion of the distribution are going to be at risk. The one who can offer what others have yet still have it mirroring what Hive accomplished will truly be revolutionary.
Does that mean everything will be decentralized? Not at all. In fact, there are certain things that should be operated on a traditional server based system. And the fact that many blockchains fall under that category is not the end of the world either. Some of them will be regulated and have the labs or foundations responsible for adherence. However, there is still the need for more.
This is where we can see Hive stepping in. We already accomplished, at the base layer, something that few out there are even close to. This means we have the potential to attach another layer, mirroring the base, which adds more services that will "compete" across all segments of the industry.
Here is where we could see Hive's reach truly expand.
The idea of one chain doing it all is now in the past. This was the concept when some of the initial projects got underway. Ethereum, for example, wanted to become the world's virtual computer. This is now a fantasy.
What we are proposing here is taking Hive as a foundation for what is built on top. The fact we have a very efficient, scalable, and reliable blockchain is powerful. It is also feeless which opens up a host of other opportunities.
That said, it is not going to solve every problem. Hence, we see the path to create other chains tied into it, all of which offer different features and solve an assortment of problems that Hive cannot.
Fortunately, some of this is underway or being planned. We have the project by DLUX as well as the SpkNetwork. Both are tying into Hive in various ways. There is also the idea of building a second layer, smart contract system bounding around in Blocktrades head. After the hard fork, it is likely they start to roll out some maps with what might take place there. Then we have Hive-Engine providing a variety of services already to the community.
Elon Musk is right about one thing: open source is crucial. When infrastructure is build so that it can be duplicated by anyone, then we know the proper path is being followed. The key to this is that it creates resiliency.
Since no blockchain is going to provide it all, we see the need to keep expanding while eliminating different points of vulnerability. This is where we see the "collective solution" enter the equation. We can provide what others are doing, simply not all on the base layer.
Instead, we replicate that on the second layer, with part of it feeding into the base. This is where Hive becomes the solid foundation, providing the back end services along with some of the core functionality required.
From there, it all spreads outward.
One of the reasons for the focus upon Hive developing a robust fixed income market is two-fold.
To start, this is something that can be resident at the base layer since much of it is already coded in through the Hive Savings feature. Here we are utilizing the stablecoin as a core element. Having a strong return with low risk has the potential to attract a lot of capital, something that will further stabilize the entire ecosystem.
The second reason is to have the value flow out from there. Anything that is generated can either be reinvested at the base level or moved to the second layer. Here is where we can see how expansion will accelerate. When users have access to resources, they can then involve themselves in projects on the second tier. This provides immediate funding.
Add in a bit of innovation from the entrepreneurs, community, and developers, and suddenly we have an ecosystem that is growing at triple digit rates.
It all starts at the base layer.
What are your thoughts on the idea of building Hive on Hive? Let us know in the comment section below.
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