Demystifying Hive: What would be a convincing introduction of Hive?

5 mo (edited)
3 Min Read
675 words

I started my activity in Hive less than a year ago.

It took me a while to understand its proposition, from various sources.

Honestly, till today, I don't think I can safely say I understand Hive. This is a problem when I want to convince friends to come onboard Hive.

Live Hive is too complicated!

What kind of understanding do I expect myself to have? I think of what we typically know about Bitcoin as the bare minimum.

For example, most of us should know the tokenomics of Bitcoin very well. It has 21 million tokens in total, and every approximately 10 minutes one block is processed, and currently, about 6.5 bitcoins are mined every 10 minutes. It is a proof of work blockchain, and miners who successfully solved the "puzzle" gets to validate the block and keep the newly minted bitcoins. The difficulty level of mining will increase every 4 years. As a result, bitcoin will get more scarce over time, in theory.

The internet space is full of explanations of what the Bitcoin blockchain is about. Arguably, the most famous explainer would be Michael Saylor, who so passionately explained Bitcoin in a convincing way in terms of its scarcity, and how things would turn out for Bitcoin, according to his projections. In sum, he and others demystified Bitcoin by a great deal, enough for the masses to make a decision to invest.

Do we have a similar set to describe what Hive is? What is the narrative? In this current time when plenty of social media blockchains are popping up, what is Hive's unique selling point?

I will want to better understand Hive.

These will be my questions, and some info I have gathered:

  • What is the maximum number of Hive that can ever be minted?
    Answer: no limit
  • How long does it take to process a block in Hive?
    Answer: 3 seconds
  • How many Hive is minted in every block?
    Answer: I don't exactly know
  • How does the consensus mechanism work?
    Answer: I have written a post about it, which can give us some clues about witness
  • How are rewards given out?
    Answer: I don't exactly know too, but I have written a post about this in the past
  • Hive has no transaction fee, how come?
    Answer: It uses the resource credit model. That'a all I know...
  • What are some of the ways projects in Hive-Engine and layer 2 help give value to Hive?
    Answer: Gaming, and community tokens, all bring users (and their investment) to Hive.
  • How is Hive not based on the philosophy of scarcity but abundance? And will it work well?
    Answer: Tough question to answer... a bad answer will make Hive look like a ponzi scheme.

I can go on... but I shall not. If you have the answers to some of these questions that can help us demystify Hive, please do. If you have new key points that newcomers should know, you can leave them in the comments too. Better still, if there exists a comprehensive introduction of what Hive is about, please point it out.

We want real committed users in Hive, and so we need them to be well-informed from the start.

Is there any Michael Saylor of Hive around?

P/S: This is not financial advice, and please do your own due diligence before investing.

Recent Posts:

If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.

You might be interested in this post, @jacoalberts and @youngkedar98!

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Great questions! Some of the questions have been floating at the back of my mind. I guess experienced users will have some the answers.

5 mo

Just when i'm about to lose hope i come across great articles on hive and thinkers that give me hope @forexbrokr

Not only am i one of the most knowledgable minds on hive. I'm one of the most knowledgable minds in all of crypto. i have my own coin that i believe is the best coin created but anyway lets summarize everything you asking because it's really not important what hive is designed to be as it's all designed wrong.

Everyone on hive at the end of the day is confused about hive even the people who say they aren't. As hive doesn't know what it wants to be. With ethereum it was the world computer right... you could build everything on it right? with bitcoin store of value that failed as a currency.

so i'm going to put you at the end of the story what hive really works as is an easy payment system like a cash app or paypal for cryptocurrency with easy wallet id's and interactive networks etc., because it's easy to build on you got all these amateur devs thinking it's going to be a gaming system etc., hasn't even come close to that in over 7 years now

so in conclusion everyone is confused and because we're all confused people don't like being part of things like that

it's like a giant ponzi scheme that's what it feels like. only thing that does work is it's easy to use. but that's not enough. questions about if a heavily inflation system works that abundance model over scarcity is malarky.. inflation models only work on huge growth models.. hive feels like it has about 10k active users tops.. every article written is the same people making the same money with the same circle of guys it's not really growing it struggles to stay in the top 100. if it's really that great shoudl it be having problems like that after all the attention and years it's been in existence.. what founders do you know of in the history of crypto who totally abandoned successful projects? well that's what happen here

no inflation doesn't work unless you have growth. i don't like that people can't tell the truth around here because they are worried about losing 5 bucks on a post, lol.. so what we all gotta go down like the titantic because you afraid to lose $5 lol.. come on guys really..

hey i'm going to come back break down all your questions neat and specific and detailed and express all technical details so you all have a broad view on hive. hive is not beyond redemption but we gotta come at it hard because if we don't.. then the community will atrophy not to improve as they have done so we have to be shocking we have to be direct and harsh if need be in order to wake them up

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I am looking forward to your further take on this.

5 mo

so how'd you like my take on things?

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yes, I love your detailed deliberation.

It is helping me learn more about Hive. I need the facts to make a judgment.

I found this post explaining how many Hive is produced per block etc. Not sure if it's the most updated. I would appreciate clarifications.

I am not understanding the part about projects like bitcoin myk and bbd coin though. Do you have an introduction post on that?

5 mo

Yes if you go to it tells you the fixed supply of the coins produced per block per year. So in 2022 i believe the updated info is about 2.559 new hive per block.

Here's the problem though. I think the confusion is not so much that people want to know how much hive is produced per block but what is the inflation going to look like. At the end of the day it really doesn't matter how much hive you're getting if the price is almost worthless or on a huge decline.

So as you probably learned it's not just one currency. It's two. The hbd or the hive backed dollar which means every hbd in existence has to be backed up by that much hive. So if the hive prices are very very low then you're going to need more and more hive to back that hbd.

In summary what ends up happening is the inflation rate goes out of control. So you may have produced a good amount of hive but then it's probably still not going to be worth much in some instances.

So many would be concerned about the inflation rate of hive.. not the amount of hive produced but what are the market conditions and prices as the algo struggles to keep up with it. So if you look at something like hbd.. it's pretty much suppose to be stable around $1.. Well sometimes it can drop about 30-40%.. last week it was at 95 cents...So that may not seem catastrophic but think about if you had a million bucks in hbd and every week it dropped 5-40% okay you've lost 50k to half a million bucks or something. So that's not stable and that's a big problem

bitcoin myk and bbd coin to me are the only things that make statistical sense. They even make more sense than bitcoin the more i think about it. So bitcoin was suppose to be a currency. That's good currencies are actually useful and not speculative in the sense we use crypto. Bitcoin is the closest thing we have to an uninterrputed stable coin. Even it's a bad stable coin but it gets more stable as the network grew to a degree. Everything else is garbage for the most part even hbd is kinda garbage.

So bitcoin myk i'm going to drop you some articles it's more of a true independent currency that makes sense or will in the near future. I say that because of many reasons but let me just drop you some resource materials because it's way too much to type and i'd invite you to for specific questions just ask me directly if you have a specific question that's easier.. much of the material is audio visual done on video, i know alot of people on hive like to read idk if that's due to a language barrier but some of it will be written as well. So be sure and post on our social network where you can earn the coin as well. we've had thousands upon thousands of posts done on the site with over 19k accounts but we have a very intuitive algo that i think it should win a nobel prize but it rewards you based on what you do.. not who you know. .so it's very intuitive in distinguishing what you do and because of many early problems in the technology some of our databases had some issues and some of the data was removed namely thousands of posts that we have backed up on servers so when you first visit us it may not look like people are doing anything but that's because of earlier issues we had to work out with teh tech that are now fixed so we're sure you'll find bitcoin myk and bbd coin interesting. you should already have some tokens of value in your wallet you can sell on hive engine.

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It is good to have question that pivot to better understand the way Hive community can be successful.
I do have some answers but Hove can be deflationary in a sense with Hbd in mind and the need to create more accounts.


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5 mo

What is the maximum number of Hive that can ever be minted?
Answer: no limit
How long does it take to process a block in Hive?
Answer: 3 seconds
How many Hive is minted in every block?
Answer: I don't exactly know

Hive is inflationary so as it grows larger similar to what you'd have in our fiat currency systems more and more currency can be produced. Some believe that's a good idea if you think back to the early history of money. The reason gold was a bad money was because it wasn't enough of it to go around.

Similar to when credit cards first came out you had less economic access because most of the population didn't have them thus you had less opportunity. So some believe the less hive in circulation would create this problem. However crypto is not the same as the standard economy.

In crypto deflationary coins have performed better and inflationary coins have done poorly. That's why hive can barely stay in the top 100 but many bitcoin forks and deflationary coins have historically performed well due to their deflationary qualities

How does the consensus mechanism work?
Answer: I have written a post about it, which can give us some clues about witness
How are rewards given out?
Answer: I don't exactly know too, but I have written a post about this in the past

Hive works on a copy/paste code of steem called "dpos" delegated proof of stake. a person new to crypto will have no understanding of this. The important idea is to understand all it basically is would be like if a bitcoin miner got voted in, instead of deciding of their own free will to mine and thus the community would have to elect them.

Now at first glance that doesn't sound too bad because you could then come to the conclusion you're protecting the environment.. there is less energy wasted and more security to the network until you realize that most of the witnesses voted in are controlled by money. So it's not a democratic system it's more similar to our politics of today how money can get you voted in if you have enough cash.

So in reality it more mirrors a feudal system/oligarchy which is a vast problem.

Hive has no transaction fee, how come?
Answer: It uses the resource credit model. That'a all I know.

This is the best feature of hive and it's only saving grace. The reality of the situation is the transactions are not free. However the perception and convenience of the payment system makes new users believe it is free which is still in my opinion better than the alternative. So this is still a plus for hive and a good feature.

So resource credits take bandwidth nothing in the world is really free. Electricity and physical limitations do exist in hive the system can't really provide unlimited bandwidth. So what happens is these resource credits give you a limited amount of free transactions. if you exceed them then you can not do a transaction so it's more like a pre credited transaction system not a free transaction system.

I like it still though and i'ts probably one of the only reasons i'm here because it still presents a better more efficient approach to dealing with transactions. So in as close as you can get to free model it would be at the top of the list, so that's a pro

What are some of the ways projects in Hive-Engine and layer 2 help give value to Hive?

The idea here is that great development and apps will eventually bring in more users and more money. The actuality of the situation is all that generally happens most of the time is that the projects created eat the lunch of hive. As to say the little money that exist in the hive ecosystem gets dispersed to a few of these projects but no new money is created. Even here on leo i don't think they are really creating new money. i believe it's just cycling old hive money.. my opinion i could be wrong but i don't think i am. Which is why the daily trade volume here is so low for leo

I think the only product that can eventually bring in new fresh money would be projects like bitcoin myk and bbd coin. That is because they aim to establish a stable currency that provides the citizens dividend to the world incentivizing them to join. So it feels similar to a ubi program but the stats suggest over 50% of the globe would opt for a ubi .. so its conceivable that billions of people would join bringing new value and money based on that. i think the other tokens are a waste of time and at best are just cycling old money and a few are getting luck at this point

How is Hive not based on the philosophy of scarcity but abundance? And will it work well?

After about 7 years of research my conclusion is that Dpos itself is a catastrophic failure. So hive won't work well and will eventually fail. Here's the crux of it all though. Any algorithmic system can work provided the distribution rate is good and there is a sense of urgency. in projects like bitcoin myk the sense of urgency will always exist because of automation and future job displacement which seems inevitable and people will always be incentivized to join because of the citizens dividend

So is it too late for hive? Almost but the last chance is if an app like bitcoin myk recognizes the problem and can control the distribution rate to the benefit of the community to balance the model. now new people won't understand this and they'll try to use hive and because the system is a failure their dreams of having economic prosperity on hive will fail because they don't have the citizens dividend. it will fail because it wont' be enough incentive to go around.

so new people generally after 2 months will leave. you won't convince them to stay. When i first came here i brought 2 friends.. they both were literally gone in 2 days. So i hope i've answered all your questions which i think were good and if you have anymore feel free to reply i'll be more than happy to respond.

As a give we have provided you with the citizens dividend in your wallet. enjoy and we hope you look forward to a more prosperous future with us.

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