The Future Of Hive: 3 Potential Game Changers
We are seeing a lot of things happening on Hive. All of this is going to feed into the continued expansion of the ecosystem.
The future of Hive lies in transactions. To me, this is the most important metric. Here is where we see the circular economy of Hive take over. Actually, this can be summed up by the term "engagement".
To explain, this premise is based upon Resource Credits (RC). A high number of transactions is going to require enough RC. This means a focus upon the aforementioned engagement.
As that occurs, the demand for RC means that the total amount of Hive Power will also go up. There is a correlation between the two. This can come from individual users, investors, or the applications themselves.
To get more HP requires someone amassing more $HIVE. This is done on the open market at some point. That means buy pressure on the coin.
Here we see how the value of $HIVE increase, driven by engagement, which helps the entire ecosystem, including the Hive Backed Dollar (HBD).
Now, we will cover 3 potential game changers in this area. Two we mentioned in some detail before so we will give a brief overview. The third is something not really discussed so this article will delve further into it.
Evergreen Content
Limitless earning in terms of time is something that could make Hive a very appealing destination for content creators. Imagine being able to get rewarded on content that was created a number of years ago.
At present, content is limited to the 7 day voting window. As mentioned in the past, there are a number of teams working on a solution. I am confident that, within 2023, someone will have a breakthrough. This means that articles or videos posted since the genesis block could be brought back to life.
This will increase the appeal of Hive to content creators. By removing that limit, utilizing layer 2 tokens, we can see how one's time dedicated to Hive is could be better rewarded.
LeoThreads
This is microblogging on the blockchain. From Hive's perspective, we are dealing with basically a comment system. This is how the data is placed on-chain. Each thread is effectively a comment.
Twitter does 500 million tweets a day. Even a small portion of that would dramatically alter the activity on Hive. Of course, we have to keep in mind that each thread has the opportunity to create more transactions.
Like all comments, they can be voted upon. This means that a thread can receive a handful of votes. Of course, replied also add to the total. Finally, there is the payout at the end of the 7 day window. This is enhances since there are Hive-Engine tokens associated with these votes which do interact with the chain via custom JSON.
The release of the new UI was done yesterday into alpha and it appears to be well received. Speed was the biggest component.
Subscriptions
Here we have an item that could easy for a foundation for the Hive economy in the medium term. It is still undeveloped for the most part across Hive yet there are a couple teams that have ideas.
Subscriptions are big business. We hear people on YouTube promoting their Patreon account quite frequently. This is their attempt to further monetize their content. Hive already has that.
Adding this feature can only take things one step further. With legacy content, this adds to the potential revenue content creators can generate.
Hive is already set up for this with recurrent payments. It also has the Hive Backed Dollar built in enabling on-chain payments.
How big is this market? Here is a glimpse.
This is a number that shot up in the last year. Reports are the growth rate was 400% in 2022. That means consumers are willing to pay for content. According to the linked article, there are 12 million people who pledge money each month.
We also have Substack. This is what is brings to the table.
As we can see there is a lot of money tied to subscriptions. It is easy to see how this is generating over $1 billion per year already.
We are watching communities forming on Hive. Consider the prospect of each community being able to offer its members the ability to create subscription content and the consumers to partake in it. This is something that is inherent within the blockchain although applications will have to create a content wall to separate the information.
Nevertheless, the payment system is resident on the blockchain with cryptocurrency operating as the medium of exchange. Since there are no transaction fees, credit card accounts, or anything of that nature, most of the money can go to the content creators. The applications could take a small piece to further enhance the community.
Circling back to the original premise, all of this means transactions. That is the true value. Each time a payment is made, that requires resource credits.
Social media is a mecca for activity. This is where Hive can stand out. It can incorporate both social media and finance into each situation, both generating more transaction.
From a blockchain perspective, that is what will end up driving the price of $HIVE higher. It is an access token and RC is the commodity to interact.
We simply need to means of increasing engagement.
These 3 ideas can really enhance that.
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