Posts

Is Hive a Security?

avatar of @bil.prag
25
bil.prag
@bil.prag
·
·
0 views
·
2 min read

Is Hive a Security?

Michael Saylor was a guest in the Altcoin Daily podcast. We all know Michael Saylor is a Bitcoin Maxi and he does not talk about other coins that often. But there were few questions about Ethereum, Cardano and some other AltCoins.

Saylor usually looks at things from the corporate / business and regulators side. His main take is that from the regulative stand point only Bitcoin is a Commodity and all the AltCoins, especially PoS coins, are Securities. His opinion is that when regulators get involved most of the Altcoins will be in trouble.

I must admit, I don't know a lot about regulations and especially about USA laws and regulations, so i will have to go with Michael Saylor definitions and points.

As Saylor says in the clip, to be a commodity network:

  • There has to be no Issuer
  • No ICO
  • No Central Organization

So does Hive fulfills these?

  • No Issuer. We can 100% say that there is no centralized entity issuing Hive. No company is running the network, no company or centralized entity can make a decidion how Hive is distributed / mined.

  • No Initial Coin Offering (ICO). Hive was created by forking the Steem Blockchain that had 4 years of coin distribution before the fork happened. Even if you go back to the start of Steem, from my understanding of history, Daniel Larimer was doing everything to avoid going the ICO root. We can argue how the initial mining was done, how fair was it. But there was no ICO.

So we can say that Hive had no ICO.

  • No Central Organization. Hive has a core developer team that is working on optimizing the code of the blockchain. Blocktrades has several programmers working on it, but he is not the only one working on it. And even when all the code is written the only way to implement it is to get 17+1 top witnesses / node validators to run the code. The top witnesses are voted in and ranked by votes of the all accounts that have Hive staked in the DPoS system.

So we can say that Hive has No Central Organization

By this definition Hive is not a Security.

Posted Using LeoFinance Beta