Use HBD For Payment At 44 Million Locations
Over the last few days we focused upon how the Hive Backed Dollar could become a store of value. This is done via the use cases that are developed.
There are 4 main areas we chose to focus upon. They are:
All of these, when combine will give HBD a strong store of value. This is something that most stablecoin providers are not focusing upon. Instead of trying to develop use cases, their sole focus is on financialization. While this is one piece of the puzzle, this approach misses a great deal.
In this article we will upon the third one listed: Payment System.
Anything it can do, we can do.
Lightning Network is getting a lot of attention. This is the second layer solution that is tied to Bitcoin. It allows for fast, low-cost transactions using the largest cryptocurrency.
Now, we see that Lightning Network is actually a layer 2 solution for Hive. Any user on Hive can easily access this network with his or her wallet. Thus, each Hive account is basically a Lightning wallet.
This project was funded by the Decentralized Hive Fund which used community resources to get the development done. The application allows anyone to send Satoshi over Lightning, where they are converted to HBD or HIVE and submitted to one's wallet. The reverse also can take place where one is able to send HBD or HIVE as payment across the Network.
The advantage to the @v4v.app system is that one does not require an active Lightening node to receive payments. On Hive, payments are available even if we are logged off. This is not the case with Lightning. Hence, one uses the v4v node to receive the Satoshi which are then converted and forwarded to the individual Hive account.
We also see how this expands the reach of Hive. When HBD is sent using this, it effectively can access anything Lightning is coupled with. If a company will accept payment using this Network, people on Hive can pay with HBD.
Of course, any expansion that takes place with Lightning will only enhance the use cases for HBD.
Pay With HBD Anywhere Visa Is Accepted
As development takes place, we see things starting to come together.
How would you like to use HBD for payment anywhere Visa is accepted? Do you think this would enhance the potential of this stablecoin?
Even in these early stages, we can see how this is possible.
Suddenly, we see an ocean of possibilities. Visa is reportedly accepted by 44 million merchants around the world. Even though there is a limit to what can be put on the card, we are seeing how HBD can be further utilized.
Once again, simply tapping into the Lightning Network makes this possible.
It also greatly enhances the value of the Hive ecosystem.
Reward And Spend
Much of the cryptocurrency world is still the same. The most common way people get a hold of cryptocurrency is to buy it. This is still the main access point. Of course, with the emergence of Decentralized Finance (DeFi), people are now getting returns for the cryptocurrency they stake.
However, most still enter it via the purchase route.
One challenge with this is that it is exclusionary. Only those with resources are able to play. Hive is different. Through one's activity, an individual is able to get rewarded in a number of different coins and tokens. This will ultimately lead to being able to accumulate HBD for spending purposes.
This moves us to another level altogether. Suddenly, cryptocurrency is on par with our native currency whereby it can be earned. This is how most acquire the money in their bank account. It is through one's efforts that compensation is provided.
Being rewarded on Hive follows the same path. One takes some action and, if it is rewarded, gets the payout 7 days later. Once this occurs, the person is free to do with the money as he or she sees fit.
Over the years we saw faucets, giveaways, and a host of other means to try to get cryptocurrency, especially Bitcoin, into people's hands. With Hive, none of that is an issue. We have HBD and HP being issued daily out of the reward pool. At the same time, there are a host of layer 2 tokens that people receive.
When we combine all this, we can see a system where people can get rewarded and then spend the money on goods or services they need.
Get rewarded on Hive and pay to get your nails done or a round of drinks at the pub.
Piggybacking The Work Of Others
In these early stages, Hive has the opportunity to piggyback off the work of others. There are a large numbers of developers working on the Lightning Network. Since we are now able to tap into it, any progress they make only enhances the reach of Hive.
We also see how this all works without an exchange. The system, behind the scenes handles it all.
Ultimately, Hive's base layer provides a better payment system than what Lightning is doing. However, until applications are built that take advantage of this, Hive can access the work of others. This actually expands Hive's reach within the cryptocurrency world.
To bring people into the ecosystem, we have to reach further out.
HBD could potentially be used at 44 million locations throughout the world.
This is one of the ways we can build HBD into a powerful stablecoin.
Let us know in the comment section below what your thoughts are regarding these two applications.
This article is not to be considered financial advice nor is it validation for either of the applications discussed. Please do your own research regarding them.
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