Hive Blockchain (HIVE): A Highly-Scalable DPoS Blockchain

While blockchain technology has already made a huge impact on various aspects of societies and economies around the world, it’s faced some significant challenges. Such challenges may be preventing an even broader use of cryptocurrencies. There are already several decentralized platforms that promise to tackle these obstacles, but Hive Blockchain is leading the charge with its innovative, progressive and scalable design and features.

What Is Hive Blockchain?

Hive Blockchain is an advanced blockchain ecosystem that offers a fast processing speed with no transaction fees. With key differences from other decentralized applications (DApps), Hive Blockchain could foster more significant cryptocurrency use and become a top web3 blockchain.

As a web3 solution, Hive Blockchain brings together creators, developers, users and even companies to enjoy a range of benefits. The Hive network promotes the integration and development of applications and systems across these parties who share the same interests. 

Unlike Web 2.0 solutions, Hive Blockchain is completely supported and governed by its community, as opposed to having centralized corporate governance. Its functionality benefits users with full control over their data, no transaction fees and access to an impressive selection of applications. In addition, users can take advantage of open-source code to produce web3 projects and applications.

History of Hive Blockchain

Hive Blockchain’s roots date back to February 2020, when Tron CEO Justin Sun showed an interest in Steemit Inc. Steem blockchain was created by Daniel Larimer, who also founded BitShares and EOSIO. Eventually, developers from Steem decided to venture out on their own. Hive Blockchain was established a few weeks afterward by these talented developers and a dedicated group of decentralization supporters. In October 2020, Hive Hardfork 24 was released, followed by the release of Hive Hardfork 25 in June 2021. 

Today, both Steem and Hive are popular, well-established blockchains, and they even share a few of the same applications. Hive Blockchain continues to evolve as more developments are planned and underway.

What Does Hive Blockchain Aim to Achieve?

Today’s internet has many potential detriments for users, developers, creators and others. For example, user data is shared without their knowledge or consent by numerous controlling corporations. In addition, both censorship and hate speech are rampant across many popular social networks today. There are also limited business models available for applications and content creators to build on. The internet is subject to corporate control and governance, hampering free and secondary market development.

Hive Blockchain is a complex platform built specifically for web3 to address these issues. The Hive network ecosystem consists of token-based economies, diverse communities and uncensored social networks. This fosters the creation of games, NFT marketplaces and other DApps. The cryptocurrencies used within the network, HIVE and Hive-backed dollars (HBD), are have numerous functions with no transaction fees. In addition, HIVE can be traded on numerous major exchanges.

How Does Hive Blockchain Work?

Hive Blockchain is built on a delegated proof of stake (DPoS) consensus protocol, which allows for the storage and time-based monetization of huge volumes of content. Through front-ends, APIs and DApps, the Hive network promotes the work of block producers, consumers, content creators and others. 

Hive Blockchain supports polling systems, identity management, microloans, play-to-earn games and more. Articles published on the platform can receive upvotes. Based on those votes, content creators can earn HIVE tokens and HBD as rewards.

Behind the surface, Hive Blockchain supports the expansive adoption of crypto platforms and cryptocurrencies as a fork of the Steem blockchain. An advanced wallet is assigned to each username. The wallet’s robust security features give users control over their finances.

Hive equitably distributes the value of content, which gives users ownership of the Hive network. This blockchain technology also features a peer-to-peer (P2P) network that directly connects fans, communities and artists with marketers and sponsors. Furthermore, Hive Blockchain supports broad and transparent user access to records, transactions and data.

Hive accounts can easily be established on the homepage at Hive.io. You can then choose the registration provider you want to work with. The next step is to select your username, which will be the same for all of your Hive wallets and apps. You can then confirm the creation of your account by clicking on the provided link in your confirmation email.

Delegated Proof of Stake

Each user of the Hive network has voting privileges, giving them a stake in the platform. Weighted voting power is based on the amount of staked HIVE the user has. It’s measured in HP, or HIVE Power, which impacts the allocation from the Hive reward pool. Locked HIVE coins are stored in users’ wallets to support staking and decentralizing of the Hive network’s protocols.

The platform uses a DPoS protocol and features the election of delegates, called Witnesses, who are block producers that validate transactions. A total of 20 Witnesses are elected at a time. They strive to keep the number of network nodes lower to support a transaction speed of approximately three seconds. While users delegate their HIVE to Witnesses, they also have the ability to back away at any time. For this reason, witnesses are motivated to act with integrity. Hive Blockchain is only one of many DApps that use DPoS. However, it stands out with its implementation of the Proof of Brain protocol and its purpose-built design.

Features of Hive Blockchain

While there are many other blockchains that support DApps, Hive Blockchain stands apart from the crowd through its many advanced features. The Hive network has been specifically designed to foster transparency, collaboration and creation. Let’s take a look at some of its unique features.

Hive Ecosystem

Thousands of individual users take advantage of the many Hive DApps each day. In fact, almost 130 DApps and projects have been created by the community (or “BUIDLed). These are all available for users to explore at HiveProjects.io. Specifically, some of Hive Ecosystem’s many applications include videos, tools, DeFi, NFTs, social communities and games. The DApps include DappReview, State of the DApps, Dapp.com and others.

Hive-Backed Dollar (HBD)

The Hive platform uses a stablecoin known as Hive-backed dollars, or HBD, supported by Hive’s ability to turn it into the equivalent of $1 in HIVE coins. It has specific restrictions in place, designed to protect Hive’s ecosystem, including the need for HBD’s market cap to remain less than 10% of the market cap of HIVE. Network participants who hold HBD for savings can earn 10% interest on their HBD. It may also be traded, exchanged and used in the network’s e-commerce stores, which is a plus because HBD is more stable than HIVE.

Hive Wallets

Hive wallets support the transfer of tokens. Each wallet has an easy-to-remember address, which can function as the username for social media apps and Hive apps. The network also supports community-owned and open-source wallets for Web, Android, iOS, Linux, Windows and macOS. Some of the accepted wallets are Hive Wallet, Vessel, Ecency, Actifit, PeakD, Keychain and LeoFinance.

A Hive wallet supports numerous blockchain applications. These include the ability to share a QR code, monitor multiple Hive accounts, use biometric authentication and more. Hive wallets are secured through a unique initialization vector, as well as advanced encryption.

Governance

Notably, the Hive network isn’t owned or run by a corporation. Instead, there are roughly 80 contributors and 30 developers actively working on evolving the platform. Hive Blockchain users have the ability to access voting rights by staking their HIVE tokens. Through voting, users are given full control over the selection of Witnesses. As block producers, Witnesses play a critical role in the function of the network and platform. They change regularly through continued voting procedures. In addition to electing Witnesses, governance supports the direction of future developments.

Decentralized Hive Fund

Hive Blockchain uses a DAO-like structure known as the Decentralized Hive Fund, or DHF. The DHF’s primary purpose is to fund Hive Blockchain’s critical activities that promote evolution and growth. More specifically, DHF uses a permissionless development model to allocate and preserve current and future tokens, which are allocated for community management growth. Users access the DHF, a decentralized on-chain system, in order to vote on funding different initiatives and to submit their own ideas.

Benefits of Hive Blockchain

Compared to other blockchains that support DApps, Hive’s advanced features and design support a number of key benefits. A closer look at these benefits makes the Hive network’s excellence more apparent.

Users Control Their Data

Internet users today share an exceptional volume of data without their intent, knowledge or control. In fact, large corporations generally govern the collection and usage of this data, often without users even being aware of it. In addition to negatively impacting users, the current Web 2.0 tech prevents secondary and free markets from being developed. Hive Blockchain is specifically designed for web3 as a decentralized blockchain. It fosters superior data protection for users while returning full control of their data to them.

No Transaction Fees

Hive Blockchain boasts fast, verifiable transactions. In fact, the execution of a transaction may be completed within three seconds. These ultra-fast transactions are available to users at no cost when they stake their HIVE tokens. Only a small number of tokens must be staked to qualify. This aspect of Hive Blockchain’s design encourages users to make transfers freely.

Access to Many Applications

Hive Blockchain is a robust platform with a large ecosystem of various types of applications. From games to NFTs and more, there are numerous possibilities for interaction and entertainment. In addition, users can take advantage of uncensored social media applications through Blockchain Hive. Content like videos, articles and more may be shared freely. In addition, any user on the Hive network can create their own tokenized community. The community’s developer has full control over its reward model and the interface of its social network.

Hive Blockchain Road Map

Leading up to the development of Hive Blockchain, Tron’s CEO and the Steem community were locked in debate. Some of the Steem blockchain developers decided to break away and create their own blockchain, which is known as Hive Blockchain. After announcing Hive’s launch, the fork was completed within four days. All STEEM holders received HIVE tokens, except for those that are associated with Tron.

There were 39 DApps on the Hive Blockchain in October 2021, and there are more than 120 today. This is only one example of continued evolution after the launch. Users continue to submit new proposals and vote on them. The extensive team of developers and contributors work to bring the approved proposals to life.

HIVE Tokenomics

Hive Blockchain uses two native tokens. These are the HIVE token and HBD, or Hive-backed dollars. As an inflationary cryptocurrency, there are no rules that keep a cap on the HIVE coin supply. It’s possible that the community may vote for a supply limit or a coin burn mechanism in the future.

Currently, the HIVE inflation rate is 7.5% annually. However, the rate drops by 0.01% per 250,000 blocks. HIVE inflation is a type of reward system from which users can benefit because staking HIVE rewards yields gains.

Of the current supply of HIVE, 65% is distributed equally between content curators and producers, and HP stakers hold 15%. Another 10% is allocated to Witnesses, and the last 10% is placed in the DHF (see above). New HIVE tokens are released to curators and producers through the Proof of Brain protocol.

HIVE Price Prediction

The current price of a HIVE token is $0.35. While there are no established deflationary mechanisms in place to drive the token’s price higher, PricePrediction forecasts that the HIVE token’s value will increase over the next several years. This may be due to the continued development of Hive Blockchain and the expected growth of interest in web3.

Continuing with this forecast, the value per token may reach $0.40 by the end of 2022, $0.56 per token by the end of 2023, and $1.19 by the end of 2025. Looking farther ahead, HIVE token’s value may reach $3.66 in 2028 and $11.33 in 2031.

Is HIVE a Good Investment?

Before getting active with Hive Blockchain, it makes sense to take a closer look at the viability of your financial investment. The world of blockchain technology has been changing rapidly over the last decade, and new networks are introduced from time to time that seemingly elevate blockchain in different ways. Hive Blockchain is one such network, notably standing apart from others in brilliant ways. While it launched less than three years ago, it’s already established a significant, growing number of users. It also has robust utility, and supports continued development via its design and governance.

Price projections indicate the possibility of exceptional token value growth over the next decade. With this in mind, HIVE may be a reasonable and even savvy investment for some forward-thinking, long-term investors. However, cryptocurrencies are subject to extreme value volatility. In addition, because blockchain technology is advancing so rapidly, no one knows how the development of other existing or upcoming networks will impact the value of HIVE tokens.

The Future of Hive Blockchain

Hive Blockchain was created through a hard fork of a popular blockchain network, and the result was the introduction of a now-thriving Hive network. Some of Steem’s features have been transferred to Hive, such as eSteem and Splinterlands. Others are available through both networks, such as DTube. These are just some of the many features and functions that are offered by Hive Blockchain today. In fact, with more than 120 DApps available via the network, and with many other advancements and features in the works today, Hive Blockchain is an evolving network that is well-positioned for extensive growth in the future.

The Bottom Line

Hive accounts provide users with tremendous benefits related to privacy, security, potential financial gains, creative freedom and more. With this in mind, opening a Hive account today could be a great investment opportunity, and could enable you to protect your data online, have a vote in the platform’s future development and more. Given the ease of opening a new account, this could be a great step to take soon.