What is Hive (HIVE)?
Hive (Hive) is a blockchain operating on the delegated proof of stake (DPoS) consensus mechanism. It was launched in March 2020 as not only a hard fork of the centralized Steem blockchain but also as a gateway for transitioning from Web 2.0 to Web 3.0. The blockchain claims it can provide 'lightning-fast processing speeds and zero-fee transactions.' Use case examples include social media that provides monetary rewards for content creators, interactive blockchain games, identity management, microloans, etc. The platform supports decentralized applications (dApps) such as Splinterlands, PeakD, and HiveBlog.
Hive is a social network for applications (apps) and services, allowing users to leverage the capabilities of blockchain technology to connect platforms and securely share content through fair value redistribution. Therefore, users are the owners of the network, and sponsors can directly connect with the community and artists without intermediaries.
Hive is an open-source blockchain focused on scaling through second-layer sidechains, while still benefiting from the public first-layer blockchain backbone to ensure the integrity of distributed data. There are two cryptocurrencies operating within the Hive ecosystem: the native governance token Hive and the dollar-pegged HBD stablecoin.
Who are the founders of Hive?
Members of the Steem community announced the launch of the project. The birth of the Hive platform stems from a power struggle between Justin Sun (CEO of Tron) and Steemit Inc. over management control. Developers hard-forked the original Steem blockchain to continue independent operations but focused on decentralization.
What makes Hive unique?
Hive is a blockchain that claims to be designed for Web 3.0, emphasizing speed, scalability, security, and massive storage space in its social media dApp.
Hive has a future-oriented bandwidth and resource storage system. Its network can securely store large amounts of data and rapidly develop through time-based monetization methods.
All published original content is permanently stored on the Hive blockchain. The platform allows content creators to vote and to do so within 7 days using HIVE and HBD tokens. Its Proof of Brain protocol is responsible for maintaining the quality level of content, leveraging human subjectivity to stimulate the development of the creative economy.
This blockchain also claims to be easy for developers to adopt, allowing them to create, deploy, and run dApps. Developers can choose to use Hive's open-source code to implement the operation of new public and private networks.
What is the total circulating supply of Hive (HIVE)?
HIVE is the native cryptocurrency of the Hive network. According to its DPoS protocol, the more users stake their HIVE, the more financial rewards they can receive from the reward pool.
HIVE is an inflationary token with no fixed issuance cap. New HIVE tokens are issued according to a fixed schedule and distributed as follows: 65% to content creators and content managers (equally divided); 15% to HP stakers, 10% to witnesses; and 10% goes to the Decentralized Hive Fund (DHF).
How to ensure the security of the Hive (HIVE) network?
This decentralized blockchain is built on the delegated proof of stake (DPoS) consensus mechanism. Delegates (or witnesses) need to verify transactions and create blocks on behalf of investors on the blockchain; specifically, 20 selected witnesses randomly create blocks, while users can stop their delegation at any time. Generally, this process reduces centralized control over the network.
The platform has a decentralized governance system, allowing users to stake within its network to gain voting rights; their stakes are represented by locked tokens stored in special wallets to protect the protocol. The company that launched HIVE stores all digital cryptocurrencies in cold wallets.
Currently, Binance's spot savings has an extremely high annualized yield, which can be described as terrifying. Those with spot holdings may consider it.
Of course, for those who do not have it, it's okay. There is an arbitrage opportunity in the contract market. That is the funding rate.
The funding rate of HIVE has been maintained at -2% throughout the day, settling every 4 hours. That means short sellers in the HIVE contract market have to pay 2% interest to long buyers every 4 hours. Since there is a profit margin, there is room for operation. One can open a long position with low leverage on the contract and close it after the 12 o'clock settlement, with the risk being that the drop during this stage should not exceed 2%. It is a risky approach.
Another arbitrage method is borrowing coins. However, the operation is slightly more complex, so I won't go into it for now. The short-term yield of spot savings is already high enough. There's no need for additional hassle.