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hive

What is Hive? How To Buy, Expectations And Predictions. Everything You Need To Know About HIVE

Web3 is in the mouth of everyone who cares about the crypto and blockchain spaces. The intention is, among other things, that Web3 will play a major role in the metaverse. Web3 is actually going to give a new meaning to the current internet. With Web3 everything comes more in the management of the users and the creators. No big companies like Facebook or Google that make money with your personal information and internet behavior. Instead, creators and users gain much more control over what, when, and how their information is used. That all sounds very nice and nice, but how should that be tackled? The Hive blockchain shows how this can be done. This is the first blockchain built entirely for Web3.

In this blog I will therefore talk about the Hive blockchain and the HIVE token. I’m going to explain what exactly Hive is and how it works. I’m also going to take a behind-the-scenes look at the team on this project and take a closer look at the HIVE course. Furthermore, I will also tell you where to buy the HIVE token.

Please note: please note that the text below about ‘Hive (HIVE)’ as well as the explanation to this should in no way be construed as advice. The choice for whether and in what way you want to trade (crypto) and which choices you make in terms of investment is up to you and you alone. We are not financial advisors.

Here you can first watch a video showing how Hive works.

What is Hive?

Hive is a blockchain created by and for creators and also the first blockchain to be fully community-run. On this blockchain it is possible to set up your own community, with its own token and economy. A big advantage here is that transactions on Hive can be made without costs. In addition, Hive offers a wallet with a unique code. This does not consist of a series of 30 characters, but simply of a word that you choose yourself. The Hive blockchain is mainly aimed at content creators and the focus is on social media. Hive is set up in a way that you can easily create your own tokens. All this without needing any knowledge of blockchain or token development.

It is a fast, scalable and powerful blockchain that is also completely built with Web3 as the focus. In addition to the creators, this should also attract users, investors and people who want to help build the project. The blockchain can store a large amount of content or content and in this way also offers the opportunity to generate time-based revenue.

At the time of writing, at the end of January 2022, 126 projects have already been developed on Hive. These cover the most diverse projects. There are 6 different block explorers, 17 bots, 6 exchanges, 5 wallets, NFT projects and 15 games. One of these games we have already discussed on our site, and is a very popular game, namely Splinterlands . At DappRadar, this game was regularly listed with the largest weekly turnover. There are also 30 different dApps that have UIs built specifically for Hive. One is good for text and the other is better for videos and so on. The Hive blockchain has a very healthy ecosystem right now.

Hive blockchain ecosystem

https://hive.io/eco

How does the Hive blockchain work?

The Hive blockchain sees itself as an innovative and forward-looking blockchain that is fully decentralized. It is a hard fork of the Steemit blockchain, after Steemit Inc. was sold to Sun Yuchen of the Tron Foundation in February 2020. Many people from the Steemit community lost their trust in Steemit and that’s why the Hive blockchain was created.

DPoS ( Delegated Proof of Stake ) is used as a consensus mechanismThis is a variation of the PoS consensus mechanism. With the DPoS you can place an amount of tokens in a staking pool and then link it to a validator. Very importantly, Pos and DPoS are sustainable ways to secure a blockchain. This is in contrast, for example, to the PoW mechanism, which consumes a lot of energy.

Hive uses two different cryptocurrencies. First, there’s the HIVE token, if you’re going to stake HIVE, it’s called Hive Power (HP). There is also the Hive Backed Dollar (HBD) token which acts as a stablecoin and is pegged 1:1 to the US dollar. I will come back to both tokens in detail.

What are Resource Credits (RC)?

Transactions on Hive take 3 seconds and are free of charge. This is made possible by the Resource Credit mechanism. You will receive these credits when you discontinue the HIVE token. In turn, the credits are used up again when transactions take place, but the credits are also restored over time. The name for these credits is referred to as ” mana “.

The amount of Hive Power (HP), i.e. HIVE tokens that a user stakes, determines how much bandwidth can be used by this user. This in turn indicates how many transactions this user can make in a certain period. This then depends on the amount of Resource Credits. These Resource Credits replenish themselves by 20% every 24 hours.
This replenishment mechanism requires each user to properly calculate how many HIVE tokens should be discontinued. In this way, all functions of the Hive blockchain can be used. Users who are active and have a lot of transactions on their account will have to abandon more Hive than users who are less active.

The different transaction ways also have different rates. Posting content, for example a text or video, costs more mana than transferring assets. Furthermore, the amount of mana required also depends on the number of transactions within a certain period. During busy periods it takes more mana to post than during a quieter period.

What makes Hive special is that even without HP you still have the ability to make a limited amount of transactions. It is possible that you do not have HP, but you do have enough Resource Credits to make a transaction. This removes one of the biggest barriers to entry for users and developers to join Hive. You don’t have to invest.

View an overview of Hive here.

Overview of the Hive blockchain

@hive_creators Twitter

What is the Decentralized Hive Fund (DHF)?

The  Decentralized Hive Fund (DHF) is an on-chain decentralized autonomous system that allows users to submit proposals for funding.After that, a vote is taken on which proposals will be financed. These are proposals that are important for the proper functioning of the Hive blockchain. Each proposal has a budget. If the proposal is passed, the budget is also approved and receive a daily or even hourly reward in HBD. All proposals that are high on the list of proposals will receive a share of the daily budget until the daily budget is exhausted. By casting votes, proposals can rise or fall on this list, depending on how many votes they receive. How much a vote weighs again depends on the amount of HIVE (HP) that someone strikes.

However, this system also has a few drawbacks. For example, halfway through a project, too few votes are cast on a proposal to receive money. Therefore, it is more important for the community to vote on proposals that explain what will happen to the project in this case. There is also no guarantee or control that a project will be completed. Nowhere is there a contractual or official responsibility to complete a project. This responsibility can be incorporated in the proposal by the person submitting a proposal.

Nodes and keys on the Hive blockchain

The Hive blockchain uses 3 different nodes, each with its own function.

  • Witness node — Endorse new blocks in the blockchain.
  • Seed node  — This allows remote peer-to-peer (P2P) connections.
  • API nodes  — This node enables remote RPC (Remote Procedure Call) connections. A selection of plug-ins can
    be used for this.

Furthermore, there are also different keys that are used in the Hive blockchain, which are made up of different layers. Each subsequent layer becomes a little less important.

  • Owner Key  — For recovering accounts, regenerating other keys, and setting a password.
  • Active Key  — For transferring and managing funds, voting and approving DHF proposals.
  • Posting Key  — To make transactions public.
  • Memo Key  — Decorate messages.

There is also a Signing Key, which is used for approving new blocks.

Opening an account with Hive blockchain

Opening an account with Hive is quite easy. On the website click on the red button ‘Join’, and then you will be given the option of several free or paid ways to open your account.

Below you can see the ‘Join’ button on the image.

Open Hive account

https://hive.io/

Each Hive account must be created by an already existing account. With the free accounts, you will have to log in via your mobile or an email address, something that is not necessary with the paid option. Remember that keys and passwords are kept safe, as Hive does not have a ‘reset’ password function. If you lose the keys or your password, you will no longer have access to your Hive account. Your password can be set yourself the first time and consists of a letter/word combination of 3 to 16 characters.

The image below shows an example of the different registration options on Hive.

Options to open a Hive account

https://signup.hive.io/

Once you’ve set up a username and password and everything works, you can start using all the features on Hive right away and start monetizing your content.

Who is on the team behind the Hive Blockchain?

Because Hive is a fully decentralized project, there is no fixed team behind the project, as you are used to with other crypto projects. There is no founder, no CEO and no COO and so on. On the other hand, there are many interested developers and other people who are building the project. These are also represented by name and photo on the website, so that is a good sign.

By January 2022, 37 people will be involved in developing Hive. Of these, 6 are core developers, 18 are developers, 6 are marketers, 2 are in operations and 31 are block producers.

Below is an image with some of the names in January 2022.

Developers

https://hive.io/contributors

What are the HIVE token and the HBD token?

The Hive blockchain uses two tokens, the HIVE token and the HBD token. The HIVE token is the native token and the platform runs on it. The HBD token is a stablecoin and pegged 1:1 to the US dollar.

Transactions with the HIVE token are free of charge. There are 401,915,985.27 HIVE in circulation at the end of January 2022, but there is no information on the maximum amount of HIVE. The market cap is $372,451,453.

The HIVE token is an inflationary token and every 250,000 blocks there is an inflation reduction of 0.01%. That is around 0.5% per year with a maximum of 0.95%.

The HBD token is pegged 1:1 to the US dollar, and the price is always just below or just above the US dollar. It is backed by the underlying asset of the Hive blockchain itself. The market cap of the HBD token is always at least 10% below the market cap of the HIVE token. This is laid down in the regulations of the Hive blockchain and ensures a healthy blockchain.

What is the price of the HIVE token?

If you want to invest in the HIVE token, a good start is to know what the price is. If you are already going to trade, you also want to make a profit. You can make a technical analysis to see what the best buy or sell moment is.

The HIVE token was listed on CoinMarketCap on March 27, 2020 at a price of $0.221. On April 26, 2020, the price shot up parabolically to $0.927, followed immediately by a correction. At the beginning of 2021, the price crept back to $0.9 before reaching the preliminary ATH in November 2021 via another parabolic rise on November 28 with a price of $2.9243. After that, the price has also been significantly corrected and at the time of writing, at the end of January 2022, the price is $0.9415.

At  CoinMarketCap  it is just outside the top 100 in 136th place. This coin has a good prospect in my opinion, it is a well done project. The people involved are mainly for idealistic considerations. The project was also fully developed with the Web3 in mind, and I think there’s a future in that. Creators gain access and control over their own products. That is why I think that this token could experience a good price development. However, I am not a financial advisor, so if you want to invest in this coin it is important to do your own research.

Where can you buy the HIVE token?

The HIVE token is not for sale on Bitvavo  but on  Binance . Several leading CEXs also offer this currency, such as the very active and interesting  Gate.io  exchange or on Huobi Global. Almost all tokens can be found on Gate.io and new tokens are added every week. A very good alternative to Bitvavo if a token is not offered there.

What is the best way to store the HIVE token?

The entire Hive ecosystem is accessible through your wallet address. A limited number of wallets are possible for this, which are not immediately known to the general public, but which are solid, good and reliable wallets. Your wallet address is also very easy to remember. With other wallets you get a row of up to 36 characters, with all kinds of numbers and letters. Not something you can easily remember. Your Hive wallet address is a simple name of 3-16 characters, for example the name of your dog or cat, in any case a name that is easy to remember.

Your wallet address also serves as your name for various social media accounts or for various Hive dApps. On Web2 you log in via an email address, Facebook or Google. On Web3 you log in with your wallet. This makes the wallet an important part of the entire Hive ecosystem. Hive offers a variety of open-source or community-managed wallets for Windows, macOS, Linux, iOS, Android, and Web.

When you create your Hive account, you get your own Hive wallet, in addition, there are 7 other wallets that currently work on the Hive blockchain.

  • Vessel
  • Keychain:
  • Ecency 
  • Peakd
  • LeoFinance
  • Hive.Blog
  • Actifit

Below you can see the various Hive wallets.

wallet

https://hive.io/wallets

Conclusion

The Hive blockchain was created by enthusiastic developers who fully believe in Web3 and want to create better conditions for creators. Hive is already used by more than 100 different apps, groups and projects worldwide. One of the most famous projects on the Hive blockchain is the popular Splinterlands blockchain game.

Hive is also the very first blockchain to be fully decentralized. Moreover, this blockchain is fast with free transactions and highly scalable. This all gives hope for the future, where Web3 will play an important role according to many crypto sources and crypto connoisseurs. If all this also happens, which unfortunately is never a certainty, the price of the HIVE token could also rise considerably. Since I am not a financial advisor, it is important to do your own research on this token if you want to invest in it.

 

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