The recent events with FTX, once again, exemplify how centralization is the commonplace of cryptocurrency. For all the talk about decentralization, the reality is that other than Bitcoin, there isn't much decentralized about any aspect of cryptocurrency and blockchain.
Even the term DeFi is misleading since much of that is tied to centralized projects. As we saw over the last month or so, anything tied to Ethereum is, by default, centralized since the base layer is run by a few major node operators. It got to the point where many believe KYC on Ethereum is going to become a reality.
There is one shining star in all of this. Fortunately, Hive is taking a different path, offering the industry an alternative that can be more expansive than the limited Bitcoin.
In this article we will cover just a few of the recent announcements that show how infrastructure is regularly being put in place. This only enhances the resiliency of the entire ecosystem.
Hive Base Layer
We repeatedly discussed how the block producer, or witness, system works. There are over 100 nodes in operation, producing blocks on a rotating basis. Unlike many of the Proof-of-Stake (PoS) systems where we see the production come from those with the most stake, with Hive, it is evenly split among the top 20, with a 21st node serving on a rotation basis.
This is only one aspect of the infrastructure that we have to concern ourselves with.
There are also the APIs. Here is where frontends are able to pull the data they need. These are equally as important since applications need to be able to garner the data they require.
Here is where we see some recent announcements that really show what is taking place.
The first comes from the @actifit team. They recently announced that its API node went live.
The RPC node currently supports hived, yet we intend to add hivemind support over the next few days, completing the setup with a jussi node as well. For now, the node is completely functional and ready.
For those unfamiliar with what this does, we get this:
Hived nodes are what make queries to the hive blockchain possible. There are several nodes currently available and supporting dapps and front ends (listed here and here).
Having more hived nodes helps with more reliability and decentralization. Being core supporters of hive blockchain, and having our own Actifit app, we made the move to making this new node available.
This quite is coming from people who understand the technical side of things. Having them focus upon decentralized infrastructure forward is vital.
We have another move similar to this.
@deathwing already was operating a few different nodes for Hive. As it pertains the API, we see an expansion.
According to the post, we see another node added in the United States, seeking to reduce latency and improve the capacity of the system.
We also see this:
All the nodes are setup using HAF and use HAF structure. (HAF itself, HAFAH etc.)
As HAF is under heavy active development, things are changing almost every day, however, as soon as everything is more or less stabilized, I am planning to write a shell script to speed up the overall deployment of what we call a "full" node, so by simply running the script, you can also have a full-fledged HAF node :)
This is not only helping the base layer but is assisting in the rollout of the second layer. We can see how enabling projects to easily run their own HAF node is only going to further decentralize that project.
Layer 2
Resiliency can come in many forms. One of the ways Hive can enhance itself in this manner is through a robust, decentralized layer 2. We are fortunate that we are seeing this built by the @dlux team. Honeycomb is offering some solutions that can help applications integrate with decentralized infrastructure that is beyond base layer operations.
One of the keys going forward will be the availability of decentralized exchanges. On Hive, we have the Internal Exchange at the base layer. This houses both HBD and $HIVE. This is a fabulous solution for those two coins yet is limited.
Honeycomb is looking to expand this to other tokens. By incorporating smart contract technology, we can see how the shift away from centralized exchanges is underway.
Here is how they explain it:
HoneyComb (dlux at the time) was the first token I'm aware of that built it's own DEX outside of the ecosystem it's based on. 0x and swap protocols on ETH made it possible to swap different assets in ETH contracts but... HoneyComb is built as a layer 2 to Hive, which lacks a smart contract platform. As such it went through 2 iterations. The first was an atomic swap protocol... which to my knowledge suffered exactly 0 losses or hacks, and the current autonomously managed multi-sig paradigm, which allows partial fill orders.
It is important to get away from centralized exchanges. These entities are showing themselves as replicating banks. They simply take large risks with capital through leveraging that can cause systemic problems. The only difference, at this point, is the size of the markets.
We can see there are many on Hive who are interested in getting away from this reality. For all their posturing, CZ and others are not interested in this. With Hive, we see the infrastructure being built that provides alternatives to what the others are constructing.
Over time, this will only enhance the resiliency that Hive has. Attack vectors diminish with redundancy, distribution, and decentralization.
That is what Hive is actively working upon. Today, we saw three announcements of the progress being made.
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