The Utilizing of DPoS algorithm enables Hive Blockchain network to operate based on a decentralized mechanism.
For those interested in learning about how the Hive blockchain enables decentralized web 3 social media platforms like Hive itself?, Then this comprehensive introduction to hive blog is a must read.
Source: bctechnology.com
What Is Hive Blockchain?
Hive's fast and scalable technology sets it apart from regular blockchains making it an ideal fit for the demands of web 3. Additionally, Hive's evolution from being born out of hostility within the blockchain industry to becoming a thriving ecosystem containing over 126 decentralized applications (DApps) and online communities can be traced back to its creation as a community-run project.
Notable Features
By creating Hive as a decentralized and open source cryptocurrency with its own blockchain project, the community provided resistance against the censorship on the parent chain.
Hive boasts an impressive combination of speed and power along with the ability to accommodate a significantly larger database compared to its peers.
To establish a secure network with effective consensus mechanisms in place, Hive uses the Delegated Proof-of-Stake protocol.
The Hive platform was originally derived from Steem but has since surpassed it in growth and sophistication.
Hive is proud to present its new feeless blockchain technology which is not only free but also competes as one of the fastest chains currently available due to its remarkable 3 second tranasaction times.
Because Hive is so robust when it comes to security and scalability concerns are lessened giving developers the freedom to be creative.
As a way to incentivize creators and support projects within its ecosystem, Hive has created two assets; Hive Coin and a stablecoin known as Hive Backed Dollar.
Understanding Hive Blockchain
Thanks to its built-in functionalities that cater to builders/developers and content creators while also attracting investors, Hive is a decentralized blockchain with an ecosystem second to none. Moreover, Hive distinguishes itself as a scalable system built for the web 3 era by offering front-end accessibility via Myriad dapps and APIs.
As one of the few networks supported by delegated proof-of-stake consensus mechanisms where community governance underpins everything, Hive offers scalability without compromising on security or decentralization.
What Is Hive Coin? HBD? - Understanding Hive Assets.
To operate efficiently and effectively in regards to governance participation within its ecosystem and economy, hive coin has been developed into a multi-faceted cryptocurrency called which comprises various utility structures including staking coins into their network for “Hive Power” (more on this below)
Furthermore, Hive coins are awarded to various parties such as content creators, curators, stakeholders, witnesses, and the Decentralized Hive Funds(DHF), whereby asset are distributed among them on proportions.
Working in conjunction with Hive coins(HIVE), HBD is an algorithmic stablecoin and a reward currency that has been designed to hold a fixed rate equal to $1 while shadowing Hive coin's market fluctuations which serves as the collateral for reclaiming their actual value. Similar to many other algorithmically influenced stable coins on the market today, HBD is redeemable for a sum equal to one dollar's value in Hive and vice versa.
What Makes Hive Feeless? Explaining Resource Credit
Hive blockchain users can utilize a rechargeable system known as resource credits to pay fees, and the consumption of resource credits distinguishes hive network's transaction processing from other networks that require spending a portion one's balance.
How Does The Resource Credits Works?
A small portion of resource credit is allocated to new accounts created on Hive blockchain making it possible for just about anyone to access the network instantly and at no cost. Even though you cannot observe such resources just like how you see your wallets coin and token collections, they still hold significance because of being tied to locked up hive coins.
In accordance with the user's stake in the network structure they receive an amount of available bandwidth and resource credit that is proportionate, acquiring a larger quantity of Hive Coins allows for greater transactional possibilities.
Governance on Hive - Understanding DPoS (Delegated Proof Of Stake) And HP (Hive Power)
While using proof of work (PoW), Bitcoin assures its network's safety but as a result gives the power to determine currency governance to those with larger hash rates the miners. Governance and scalability on the Hive platform are more flexible than on others this gives immense scope for expanding the ecosystem. Experts believe that DPoS promotes democracy through its consensus mechanism Proof of stake's economical worth is presented while mitigating its somewhat centralized nature.
Although witnesses play an important role in verifying transactions and securing the ecosystem in DPoS unlike PoW they don't need to possess significant stake or hash rate.
When it comes to Delegated Proof of Stake blockchain governance system for blockchains; witnesses are chosen by the votes from the community and they possess rights along with network assets like hive coin.
Moving onto the topic of 'Hive Power', it's essentially a staked form of Hive. Many helpful utilities surround Hive in its different forms which make it an important tool. HP or Hive power denotes the locked-up form of hive coins. When you power up your hives tokens by locking them away on the network, you have a say in how things are run through participating in governance. This means you'll be able to vote for witnesses and proposals looking to be funded by The Decentralized Hive Fund (DHF).
Nonetheless, unlocking or powering off a hive that has been locked entirely,partly and/or energized remains open to the owner's discretion. However, all the assets are set to transform into a liquid state within thirteen weeks but sections of its total amount will gradually convert each week over an interval equaling seven days.
There is no exit from the hive, it only changes form and unlocks new abilities on the network.
Explaining Delegations
Hive blockchains require "resource credits" for users to conduct transactions, so some may run out and be unable to perform transactions on the network. To gain more resources, you can buy hives and power them up or just wait for them to recharge. A delegation can be offered to an individual if they have to do more than an average transaction.
It's typical for accounts to delegate HP to each other in hive. However, delegating hive requires it to be locked or powered first. Delegating HP means giving up your stake in hive and losing out on curation value as well as resource credit. While not possessing any extra hive in controlling wallet; getting to use those resources is a major advantage for the recipient, delegating only leads to resource depletion from the sender's wallets.
The Different Sets of Hive Keys Are?
Various keys can be found on hive all serving separate functions that collectively contribute to improved account safety. The followings are keys that are included:
Owner key: The use of the owner key goes beyond simply changing the ownership of an account, other functions include regenerating key sets and recovering accounts.
Active Key: An active transaction key makes it possible for any account to transact on the chain. If you sign in with your associated active key then you can perform various operations such as making transfers, voting for witnesses, and even approve DHF proposals.
Posting Key: It's possible to post text-based contents such as posts or comments by using Posting Keys on the chain, and an account's ability to complete this task depends on logging in with its associated posting keys.
Memo Key: A method for decrypting encrypted messages within fund transfer memo parameters.
Signing Keys: A witness account creates these keys to indicate that a witness is available to produce blocks or verify transactions. The key is unique to the witness and can also be used to indicate the unavailability of the block.
Where Can You Buy Hive?
Hive can be bought on the largest cryptocurrency exchange Binance and you can use different type of methods to make payment even with the use of Bitcoin or USDT.