The Real Selling Point Of Hive

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(Edited)

The Holy Grail of mass adoption has so far been elusive due to some sizable barriers to entry, chief among them being fees.

This is a quote that appeared in an article on Cointelegraph.

At the price of Ethereum races higher, so does the transaction fees. This is putting the blockchain in a really bad position. The more success it enjoy, the closer it moves to a cap whereby it all could collapse.

The truth of the matter is that we cannot foresee a world where transactions keep accelerating at an enormous pace and there is a fee tied to each one. This is going to take Ethereum out of the equation down the road if the pace continues.

We are going to see a future where there are a lot more to transactions than just sending money from wallet A to wallet B. As we enter a world of smart cities and Internet of Things, do you think the volume of transactions will remain the same. Automation is happening all around us meaning that the number will only grow.

Thus we are faced with the situation of not only dealing with trying to convert the present transactions on the centralized system over, but have to deal with the increase in volume.

Sadly, as Ethereum is presently proving, it cannot even handle a smidgen of what is generated each day on the centralized servers. This is going to have to be overcome if DLTs are to be taken seriously.

Most of the world is not accustomed to paying fees. Sure, those who trade understand a transaction fee. Also, those who wire money are also acclimated to it.

Nevertheless, for the masses, a charge per transaction is not something they are accustomed to. We also need to keep in mind that, at present, on Ethereum, the fee is not nominal. In fact, it is a healthy rate.

The quickest way to eliminate these barriers is by offering a feeless alternative to blockchain. Individual users and businesses would not have to worry about learning how to buy, store and use digital currencies for traditional “data-based” applications. Corporations would not have to send their accounting department back to school to learn how to handle a completely new currency system. And ultimately, feeless DLTs could speed the shift to smart cities, smart roads, smart homes and dozens of other promising ecosystems that require the swift, secure transfer of data and payments.

Source

It seems once again that Hive has a solution. There are no fees per transaction on Hive. This is a huge bonus for services such as social media and data storage.

After all, how many people do you think will pay $40 to have some data stored on the blockchain? This goes against the main concept of what the blockchain is suppose to offer.

With Hive, the main selling point is that all data can be stored for absolutely free. The only requirement is to have enough Resource Credits to do the data dump, something that recharges every 24 hours.

The main drawback to Hive at the moment is the lack of smart contract capability. This really hinders what can be tied to this blockchain. However, that is being addressed and we should see a viable solution (at least one) near the end of this quarter.

Having this capability would put Hive on par in terms of feature set with most other blockchains. Even if it is a Layer 2 solution, the ability to interact in an efficient, inexpensive, and rapid manner is all that matters.

Here again, once that is in place, we see the major selling point as the ability to operate without fees. How much of an appeal is that to developers who are trying to develop games and other projects yet trying to work around the fees structure that inevitably arises.

The industry is encountering a challenge in this area. As more attention is garnered, a grand opportunity is lost because institutions realize how much is taken out of the equation in fees. It was posted that Ethereum miners made more than $3 million in just fees in an hour.

Again, this is a number that is only likely to increase as Ethereum becomes more popular and the price keeps rising. Wall Street firms are now starting to buy into the token, meaning they are investors and not users. Thus, they do not care about the fees yet their buying will increase them.

Perhaps Ethereum could become a second store of value to Bitcoin. Unlike Litecoin, maybe this is the silver to Bitcoin's gold. However, it does not solve the transaction problem that the chain is presently facing.

Hive can handle it. We have a lot of capacity untapped on chain as well as a system that does not charge fees. This is something that institutions are looking for.

For now, the key is to get the development in place so the infrastructure is there. Once that happens, we can see things start to change in a rapid manner.

The industry is failing in this area and Hive is one of the chains that can offer a legitimate solution.

We only need to tout Hive's biggest selling point.


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Great perspective on the Hive benefits in comparison with the others and with the smart contracts coming to the blockchain we might see it pushed up like never before. With the amount of the influx transactions that are going to arrive here will capture many of the eyes of the public. If we could enroll at least one influent institution within our stakers, I think we might see a new world built around Hive.

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I think the first step forward is going to be the microblogging application. That will add a lot of transactions to the blockchain. Leofinance tweeted out that a lot of the discord discussions can end up on chain with a feature that it will have.

That should push the numbers up, giving us a lot to promote.

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pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 43 of my contest just started...you can now check the winners of the previous week!
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Yes hive has a lot usefull things to offer, is fast and scalable. let's hope for a bright future.

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Free or low fees is the only thing that helps the retail people have an edge in the system. We can't exactly compete when the big financial institutions put down their money and resources to drive the smaller people out. This is why having the fee as resource credits evens out the playing field for the average person. A smaller trade would avoid ETH because it is hard to make a profit after deducting fees.

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Sent you 287 HIVE. It's a social experiment called Steemtorch. You've got all the info here: https://peakd.com/hive-147983/@stayoutoftherz/hivetorch

You're supposed to "pass the torch" on to someone else, preferably to someone who hasn't had it yet.

BUT, it looks like I screwed everything up by putting in a bad "count" number, so, if you could send me the 287 I sent you ... with no memo ... then I'll do my send to you over again, and hopefully we'll have things fixed.

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If you want a serious smart contract layer capable of handling billions of dollars locked in DeFi, it needs to be very decentralized.

Good luck competing with Eth 2.0, Polkadot, Cardano, Binance chain, EOS, Kusama, Solana, and another 1000 "next ethereum" blockchains. It is unlikely.

A hive smart contract layer will be awesome to provide useful tools for communities and games. Let's focus on remaining more scalable than others, and let's keep the Dapp network effect.

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Good point.. seems like a challenge for sure. But I think we have a lot going for us now, so fortunately it's not just about smart contracts. Hive could be social media 3.0

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The smart contract layer that @disregardfiat is constructing allows each app to decentralize itself. It isnt even the entire layer but the "community" involved in the project.

Hence each DeFi app could be on its own in terms of the nodes that run it.

I dont think you see that anywhere else. Plus, since the transactions are posting on hive, there is no fees at that level.

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Sharding is a bit like that. Cosmos also allows second layers building on top of the main chain. Polkadot also kind of works like that. Each shard is independant. Fees are not an issue for DeFi apps when you talk about billions. Scaling is also coming.

That doens't mean that DeFi on hive will be useless. It will be used to make hive better, but not to compete with others imo.

In terms of social media and gaming, we are not only winners, but we are the only players around.

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Mannn hive is super unique! The world needs Hive, it is inevitable, just like the world needs bitcoin

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It does have a lot of things going for it. We are seeing more being added to the ecosystem.

In the end, we are going to have a lot of the same features that other blockchains offer, albeit a bit differently.

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Another selling point is the MEMO key. Anyone can encrypt any message and send it to any account. It would be theoretically pretty easy to get Wallstreet bets on here sending secret messages to each other right on chain.

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I used to use that on the old chain. An then one day (a HF?) it just stopped working. Tried several times over the next month, no go. It now works on Hive? Been so long, was it the # symbol that makes it work?

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Yeah I'm not sure if it works at the moment with frontends like peakd and such. The way it works on the backend we could set up entire encrypted chatrooms... I don't think they'd even have to be on-chain... just the memo keys used to encrypt the messages on a private server if needed.

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If I am not mistaken tribaldex developer is trying to integrate swap.eth and other token in hive-engine smart contract that wil enable defi protocols. If that can happen, hive will be booming of social media with defi and other smart contracts on it

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I am not aware of that but it would not surprise me. @klye just put up a proposal for collateralized loans using one's hive account. A very interesting concept to say the least.

There is a lot developing, more than one can keep track of.

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Is there a place I can go to see Hive’s development roadmap or proposed changes?

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Hive has the capacity to do it. As the growth will be not all in the same day it has the chance to tweak what it can hold and how fast it needs to adapt to new needs.

Hive will not be the payment processor as it needs a faster block time, but who wants it to be as it can cover the market of ETH with a lot of potential.

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Not sure it needs faster block time to be a payment processor.

How many people get their money in 3 seconds with any system?

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There are roughly 16000 bank transactions/second and VISA+Mastercard have a share of 5000 of them. It shall work also on 3 seconds, where I think there are better solutions on the cryptomarket. Hive has the potential to replace ETH and that shall be the focus, as for the user HIVE is the best option!

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when do you think we'll have the infrastructure ready for something resembling mass adoption ?

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Depends upon what leads that adoption and what you mean by mass adoption?

If you are talking billions of people, most likely never. If you are talking 10-50 million doing basic transactions periodically, we can probably handle it now.

Finance is easier than a lot of other things since it is most likely just a single line in the blocks as opposed to a full blog post.

Gaming will also fall into that category since custom json are a lot less.

Before mass adoption can take place, the RC need to be figured out and how to get accounts. Those are the two big issues I see at the moment.

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I was thinking a good 100 million people messing about on the chain like we do now

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It is just matter of time , A little more development on Hive second layer and smart contracts, Hive will boom.

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There is a good chance of that.

We are seeing a lot of development coming from different sectors. We will soon witness a lot of it starting to tie together.

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I do agree with your perspective on the fees part, the problem we have is that Hive has been mostly marketed as a censorship-resistant social media.

This means that most folks know it for being censorship-resistant. and not for developing Dapps or development.

We as the Hive community need to start marketing our zero fees selling point especially at this time when Eth fees are over the top and maybe the fees issue will be looked at by other developers outside Hive.

Thanks for this great post.

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The problem with what you are saying is the problem we have with "marketing" hive, there is not one size fits all. There are different targets and we must cater to them specifically.

For now, the censorship resistance is put forth because it is what we can provide now. There isnt the smart contract capability at the level that it is needed. Also, the target market is there since it is in the news all the time.

Have to pick somewhere to start. Bringing in users will likely catch some attention of developers.

But you are right, we need to tout the idea of zero fees too.

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The most exciting thing for me is the possibilities micro transactions will allow. The blogging side of Hive has given me a taste but being able to send 1 cent of value to someone without some middleman taking a cut is revolutionary.

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That is a world that is really unexplored at this point. How will microtransactions operate in the future?

My thinking is that it lines up great with the Internet of Things and automated transactions. There are many areas where lots of automated transactions take place. These could be done on Hive since, as you said, a part of a cent can be sent.

It opens up a completely new denomination of pricing. No longer is a penny the lowest one can go.

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I do see a world where we go about our lives as lots of little transitions that are happening in the background. Like and ebb and flow of value from and to the person. I figure that is how they do it in Star Trek, cause you never see them carrying a wallet.
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Playing devil's advocate here for a change :)
What if Hive gets the same success as ETH in terms of price ?
Let's even say Hive is 100$, trx require RC which require HP.
Every new user will have to buy Hive (around 20 to be able to play with Hive smart contracts), that's damn expensive to start playing on DeFi :)
Not sure Hive could scale very nicely with a high price.

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The witnesses have the ability to adjust the pricing for the Rcs.

So in that instance, they could alter it. Plus, on Hive, if delegated some HP, one can then earn through his or her actions, bringing in more Hive to power up. This is why the inflation rate being a bit high is vital as well as the ability to earn HIVE.

It keeps the ecosystem spreading further out.

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I didn't think about that !
This is what we would automatically see I assume then (I mean a decrease in RC price if Hive moons)

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I think hive needs really good sidechain or onchain smart contracts + smts.

I see the biggest success will be if finance ( internet money wallet) + social media will work together hand in hand.

99% of other cryptos will fail for daily payments because of fees or too complex. Hive can easily have a QR code payment app. With names are payments more easy.

Besides that, HDB needs to be fixed, haircut sucks and can be only make more damage as the benefit is.

A loan HDB version pegged to 1$ would be the best we can have. SO average user can have savings in Hive and if the money is needed = loan.

Hive is then a payment service / social media/project funding/investment and a bank.

I don't know where devs talk about the future of hive, but HBD should get more attention. I see really no benefit to having it with the current parameters.

DAI proofs it works, so why not HDB is hives DAI version?

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Very interesting! Thanks for sharing.

I'm interested in learning more about smart contracts on the blockchain. I'm doing some research here and on the internet but if you happen to know a good source, I'd appreciate that.

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If we could just have Uniswap like pools on Hive-Engine that alone will be a huge step. One of the biggest strengths we have right now is the community. You could launch it right now & you'll get 1000 Dapp users in hours.

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Here again, once that is in place, we see the major selling point as the ability to operate without fees. How much of an appeal is that to developers who are trying to develop games and other projects yet trying to work around the fees structure that inevitably arises.

This is the reason why the only blockchain game that I play is Splinterlands. The ability to trade, buy, and sell cards with zero fees makes for a great user experience. I think the same thing is going to happen to blockchain microblogging with LEO's new microblogging venture. It will make other blockchain microblogging attempts look inferior in terms of user experience.

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Those ETH fees are a killer - I wanted to get some USDT into Celcius to take advantage of their 12.5% return, but it's a $9 transfer fee, I can't face it - now I'm exploring what I can do on other networks.

It's great how one can just trade at one's leisure here without worrying about Fees at all!

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