Coming Soon: Hive Side Chain
When is Hive going to step up into the big time? This is a question everyone seems to be asking.
Anyone who follows what is taking place knows there is a lot going on. We are seeing a lot of development in many different areas, none of it seemingly having a major impact.
This is natural. Often projects go through a period, a long one at that, which is just a grind. For those who are familiar with exponential growth curves, this is the flat period on the chart which can be rather deceptive. It looks like nothing is happening, then the explosion happens.
Is Hive going through this? A case certainly could be made that we are seeing a lot of the groundwork being place upon which our future will be constructed. With so much going on, it is difficult to be patient. Truthfully, a month feels like a decade as the expectation grows.
Yesterday, the big news was the release of CubFinance by the @leofinance team. This is being constructed on BSC, not Hive. Why is that? The answer is simply that, at this point, the capabilities and traffic do not exist within the Hive framework. That is something that is going to be addressed.
Evidently, in his research looking into developing a sidechain for that project, he delved into Ethereum Virtual Machine (EVM) architecture. This is the code that Ethereum is running on. More importantly, it is also what was used for Binance Side Chain.
Here is what the article had to say about this:
One neat feature of the Ethereum chain I didn't realize up until a few days ago was that a person could effectively set up a private EVM instance (sort of like Binance Chain BnB) and use that to run smart contracts on. With even further research into this thing it was discovered that even though the EVM chain was "private" it could be run on multiple nodes, thus implementing proper decentralization into the mix.
Basically, if they can do it, we can do it too.
Things started to click. If this idea will work as the sidechain for Hive.Loans, why not do it for all DeFi projects on Hive? Instead of just having a single application, accounts as collateral, could it be opened up to be the same as what Ethereum and BSC are offering? After all they are attracting a lot of users and developers with their DeFi potential.
It looks like the answer to this is yes. We are going to see the process moving forward whereby Hive Side Chain (HSC) is built. This will offer Hive the ability to do anything that is occurring on those other two blockchains.
There is one major difference. With this project, there will be some reverse engineering done to alter the currency that is utilized. Instead of ETH or BnB, HIVE will be the token associated with the HSC. Thus, any transaction fees incurred will be paid in HIVE.
Suddenly, we see a potentially major sink created.
For much of the past 6 months, conversation swirled around the idea that decentralized smart contracts were needed for Hive. Presently, there are a number of different projects working on this. Ultimately, we are going to see a variety of options rolled out for developers and users alike. That is a good thing.
However, in this instance, the code is being used from the largest decentralized smart contract platform we have. It is not a direct fork so some coding is required to integrate it into what is being done on Hive.
One of the key parts to decentralization is getting different nodes to run the software. In this instance, the developer felt it best to run a PoW model for this sidechain. Once again, the advantage is that the payouts to miners will be in HIVE and not some proprietary token.
While that puts vision of Bitcoin mining in people's minds, expensive equipment that basically excludes the average person, that does not appear to be the case here.
Here is what was written in the comment section of the post.
It looks like we are going to have CPU mining with this. While the payout might not be great for the average person, the benefit to this is we can get 500 or 1,000 nodes running the software. That provides massive decentralization as compared to a lot of chains out there.
In other words, eventually, everyone on Hive with a computer can contribute to the security of this chain.
DeFi is actually just the starting point with this concept. In fact, the idea anything they can do, we can do is valid.
Also from the post:
This will allow for ANY Ethereum smart contract code to be ported over to the Hive.Loans smart contract capable EVM instance as well as bring fourth the ability for the Hive.Loans chain to host things like ERC-20 tokens, Ethereum like NFT offers and full support for basically anything that Ethereum can do being ported onto HIVE.
Ethereum is getting all the attention for the innovation that is taking place. The drawback, however, is network traffic and the cost of transacting. They claim their next update will address the later but we will have to wait and see.
BSC is gaining in popularity because the fees are a fraction of the cost of what is taking place. Of course, the knock that that is that it is centralized. Thus, a major concept of cryptocurrency, third party risk, still exists.
With Hive Side Chain, the idea is to have low fees yet decentralize the system. If this can be achieved, what will this do for the price of HIVE as well as the entire ecosystem? We will be offering transactions at a fraction of the cost of Ethereum while decentralizing, something that BSC lacks.
Suddenly, we can see the potential, with this one move, for Hive to be playing with the big boys.
Once again, we are grinding along. It is projects like this that provide an optimistic future for Hive. This is another in a long line of work being done by developers seeking to add a lot more utility to the Hive blockchain plus increase the value of the coin. Hive's success is not going to rest on just one project breaking through.
As they say, this is another tool in the toolbox.
This is not something that is going to be in place in the next week or so. The plan is to get Hive.Loans out by the original target of mid-April. Whether this release will coincide with that is not known. Until the code is torn apart and fully looked at, any guess on timeframe is just speculation. Naturally, something will be in place for the release of this app since it has to run on something. However, it might not be close to what is being laid out in this article.
In the end, this could be huge for Hive. With all the other stuff that is taking place, this could compliment the entire process. Essentially, Hive is developing an expanding core of offerings, enabling both developers and users more options when they arrive on Hive.
With @threespeak moving closer to offering decentralized video storage and Leofinance working on bringing out their microblogging application, we will suddenly have a couple of social media applications to offer the public in addition to long-form blogging. Couple this with the ability to handle ERC-20 tokens in addition to NFTs and other DeFi applications, and we are starting to see a well-rounded offering taking shape.
Of course, we also have the gaming which is advancing at a fairly rapid pace. This is another entry point in which to onboard users.
As all of this starts to tie together, the overall Network Effect should kick off. One of the biggest values that a Hive account offers is that the same log in credentials allows one to access any application that is associated with Hive. Thus, a new person can select from a full menu of offerings.
Eventually, this activity is going to lead us to the elbow of the exponential chart, the time when things absolutely take off.
It will be interesting to see what happens when HSC is brought out.
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