Hive is one blockchain that has real world use cases which give it value. Let’s explore what gives both the Hive blockchain and HIVE crypto value below.
The Hive blockchain’s value comes from it being a truly decentralised, efficient blockchain built for Web 3.0.
Through a myriad of social applications, Hive’s primary value is that the network offers freedom of speech for all users, no questions asked.
In a modern digital world where increasing censorship by governments and big tech continues to be an issue, Hive fixes this.
Why should the public allow the heads of publicly traded companies who answer only to a tiny subset of shareholders, dictate what is morally right or wrong?
This section of the LeoFinance Hive guide will help you see that the success of the HIVE token price, is inherently linked to what the blockchain offers users the ability to do.
Value of the Hive blockchain
Let’s first expand on what gives the Hive blockchain value, walking through the major value-adds below.
Fast and FREE transactions on the Hive blockchain
Before we explore Hive accounts themselves, we need to start by saying the Hive blockchain allows decentralised applications to run by quickly processing transactions, with zero fees for users.
Yes, transactions on the Hive blockchain are FREE for users.
If we consider Ethereum to be a leading blockchain for decentralised applications, let’s use it as an example comparison here.
Can you picture Ethereum with free transactions and without Vitalik asserting control over network governance?
Well, the blockchain you’re actually picturing here is Hive.
No single Hive witness has the control of a Vitalik and the blockchain is robust enough to be able to handle whatever traffic increases are thrown its way.
There is no CryptoKitties driven network congestion on Hive and you’ll never have to pay $80 USD to send $5 USD to a friend.
But the real value of Hive is offered at the account level.
Censorship resistant social media accounts
Hive accounts aren’t string based like other blockchains, but instead they’re easy to remember usernames that are simply in the format of @forexbrokr.
But possibly the biggest value add to Hive is the ability for literally anyone on the planet to create a censorship resistant account of their own.
Your Hive account allows you to access and publish content to Hive front-ends such as leofiance.io or peakd.com.
The key however, is that while your content is displayed on a regular web server hosted front-end that’s controlled by a central entity, your content is also published to the blockchain using your censorship resistant account.
So while a front-end community, server host or government may not agree with the content that you’re posting and choose not to display it, it is still published to the blockchain and immutably tied to your account.
If you’re posting something that simply doesn’t align with the interests of that front-end community such as illegal content, then they can remove you from that front-end.
But the difference between this and say a Twitter ban, is that you never lose your content, your followers or your ability to speak.
Only the front-end can choose how to display your data on the blockchain.
You’re still free to take your content and followers to another front-end that better fits your ethos.
You can even think of your account as an NFT.
There is only one of your account, with all its value (rep, followers, your wallet) all tied into that account.
It’s your account, so just like any other asset, you’re able to sell it as is by simply transferring the private keys to a buyer.
Immutable communities using Hive
By offering censorship resistance at an account level, Hive therefore allows you to build immutable communities.
If you have an online business that relies solely on your centralised social media account to attract sales, the risk is immense.
If it’s based on Twitter or Facebook for example, you’re literally at the mercy of that network pulling the plug on your entire business at the stroke of a key.
It’s not your account, so it's entirely up to their discretion as to why or when they do this.
Being at the mercy of centralised social media companies is a business risk that can no longer be ignored.
Hive’s censorship resistant accounts offer the ability for business owners to build immutable communities that completely remove this risk.
Take the largest, most popular community currently built on Hive - LeoFinance.
Using Hive’s second layer, LeoFinance has built its own tokenised community on top of the Hive blockchain exclusively for trading and investment chat.
By launching their own front-end at leofinance.io and their own second layer token called LEO, they’re able to choose how niche content is displayed in their own community.
For example a piece of cooking related content may be highly rewarded and visible on Hive itself, but on LeoFinance it isn’t displayed or rewarded in LEO.
Alternatively, a Bitcoin analysis piece may have zero HIVE rewards, but due to being published to the LeoFinance community, is highly visible and rewarded in LEO.
Value of the HIVE crypto token.
But from an investors point of view, how does value transfers from the Hive blockchain to the HIVE token?
HIVE and LEO token demand
Let’s continue to use the LeoFinance community example from above.
If you’re a business in the crypto niche, you now have an immutable community full of eyeballs in your specific niche.
Eyeballs that you want to be on your specific content.
Remember you can’t just spam the community, because the front-end is still centrally hosted and the community has a number of mechanisms to not display your content.
If you want to succeed, you have to be smart and provide actual value to the community.
Getting community eyeballs on your content is best done by to your stake in LEO.
Do you want more attention?
Then buy and stake more LEO so your content is more prominently displayed.
You’re showing the community that you’re invested by taking a stake in the token’s success and building true value through quality content that isn’t spam.
The incentive is there to provide value because if you’re simply spamming, then your investment in the token is not going to make money.
As for HIVE, remember that you’re still using a Hive account running on the Hive blockchain.
You require a stake in HIVE to transact on the network and not to mention that all second layer community token purchases such as LEO are denominated in HIVE which creates demand that way.
As you can see, the success of the HIVE and LEO token prices are inherently linked to the success of Hive based accounts and communities.
Best of probabilities to you.
Direct from the desk of Dane Williams.
Why not leave a comment and share your thoughts on what gives HIVE value in the comments section below? All comments that add something to the discussion will be upvoted.
This Hive crypto blog is exclusive to leofinance.io.