Two Unique Security Features of the Hive Cryptocurrency Wallet.
Your Hive wallet is different from other cryptocurrency wallets because of it's unique security features.
- During 2022 we saw millions of investors lose their cryptocurrency through so many different ways.
- But here on Hive or Leofinance are cryptocurrency is protected by our private keys.
- And in addition to the usual wallet cryptographic security here on Hive we enjoy extra protections against theft of our crypto.
Security Feature number one: Hive Power
- You are paid rewards on the Hive platform for posting, commenting and upvoting in Hive or HBD.
- The strength or value of your personal vote depends on how much “Hive Power” you have.
- Your wallet has a menu option called Powering-Up. If you use this feature you change the Hive in your wallet into Hive-Power.
- This increases the value of your vote. But did you know that Powering_Up your Hive to Hive Power is a security feature?
- Yep! Powering-Up is a security feature because you can’t withdrawal Hive Power, you have to convert it back to Hive.
Powering Down
The process of converting Hive Power to Hive is called “Powering Down”.
The Power Down process has rules, you can only Power Down 1/13th of all your Hive Power once every seven days.
So it takes 13 weeks to Power Down all your Hive Power to Hive.
This is a security feature because most crypto currencies exist in only one form and they only have one password, which is usually called your “Private Key”.
So if someone gets your “private key” they can transfer your cryptocurrency out of your account to their account and basically steal all of it the same day.
However in the case of Hive our cryptocurrency exists in a liquid, easily transferred form called Hive or Hive Dollars and as a illiquid and nontransferrable form called Hive Power.
- If someone gets your passwords and wants to withdraw your Hive Power, they have to initiate a “Power down”.
- This converts your Hive Power to Hive. Each “Power down” takes 7 days.
- Each “Power down” is limited to 1/14th of your total Hive Power.
- So it will take someone seven days to steal your 1/14th of your Hive and it takes 13 weeks to Steal all your Hive.
Security Feature Two: your hive wallet talks to you!
- Your wallet talks or communicates to you with messages!
- Did you know that every time you sign into your Hive account and check your wallet it tells you if your “Powering Down” or converting Hive Power to Hive?
- So because it takes 7 days to “Power Down” or convert your Hive Power to Hive, so you have 7 days to catch any attempts to steal your Hive.
- If you see this and you didn’t start the withdrawal, you can cancel it and then use your Master password to change all your other passwords.
- I like this security feature because I think it increases my wallet security and I think it increases price stability by reducing impulsive selling in reaction to bad news and it encourages commitment to the platform.
Security Feature number three: Hive Savings Account
- If you don’t want to convert all your Hive to Hive Power because you might need it and want to keep it “liquid” or readily available you have another safe alternative built into the wallet called Savings.
- Each Hive Wallet has a built-in Savings Account, into which you can transfer your liquid Hive and your liquid HBD.
- If you transfer your Hive or HBD into savings, it takes 3 days to get them out.
- In order to get your money out of Savings you initiate a withdrawal.
- Then every day for three days when you sign in and look at your wallet it talks to you and says “Withdrawal in Progress”.
- So if someone steals one of your passwords and starts a withdrawal you have 3 days to see it and stop it.
- Then you can use your master password to reset your other passwords.
My Final Thoughts
- One of the beauties of cryptocurrency is its decentralization, so there aren’t any bank employees telling you when and how you can access your money.
- But this also means there isn’t anyone guarding the way you access your money; your passwords.
- Hive is a unique cryptocurrency because of its multiple passwords and wallet protections.
- I don’t know of any other cryptocurrency with these security features.
- I suggest you utilize to them to protect yourself.
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Thanks for stopping by and reading my blog.
If you have questions please ask them in the comments.
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Photo Credits:
Wallet Photo from Pixabay Rpyalty Free Photographs