The Future Of Hive: What Makes It Unique
We have seen the future.
Sometimes things can be so obvious it slaps us in the face. My view is that history will look back on the hard fork which instilled resource credit delegation as a monumental moment, even those we didn't notice it at the time.
Hive is a unique animal. Not only are there two coins on the base layer, we also have one being an access token. Many blockchains have transaction fees yet, on Hive, an investment is required (by someone) to transact.
Here is an example of someone who posted yesterday.
Notice how this individual lost the ability to interact with the blockchain. While we can acknowledge it is just one person, this can be extrapolated out.
Hive offers something very valuable. We hear a lot about NFTs and how they can be tied to digital assets that can skyrocket in price. Taken this view, if we strip it down, Hive is digital real estate.
This means that anyone who wants to interact requires resource credits.
Network Effect And Increased Numbers
What makes real estate valuable?
Mostly this comes down to supply and demand. People wonder why real estate prices in major cities (and the surrounding areas) have skyrocketed. The answer lies in something called urbanization. In the United States, along with most other developed countries, the flight has been from rural areas to urban. The decline in manufacturing jobs only heightened this.
Hive is no different. What makes Hive valuable is the demand for access to the real estate. Unlike digital collectibles which utilize an NFT, Hive simply has the $HIVE coin. This is fungible but does give everyone a portion of the blockchain, especially when powered up.
As we can see, without it, there is no way to gain entry.
This is rather different from the common design of most networks. On Bitcoin, as an example, to transact one simply has to pay the transaction fee. This means getting some BTC and spending it to engage in a medium of exchange. This can be a one off event depending upon what the individual is doing.
With Hive it is completely different. The individual is required to make some type of investment into the ecosystem to transact. Simply buying the coin to pay a fee doesn't work. It has to be staked to impact the on-chain activity.
Here is where the network effect will hopefully enter. There was a time where we have hundreds of thousands of users who were active in some form. This fell off during the previous bear market which was painful. We also had the Justin Sun episode in the middle which further fractured things.
Nevertheless, the solution is fairly clear. Increased numbers due to game or applications that excite people cures a lot of ills. Here we see the demand for $HIVE enter as resource credits are needed. At the moment, the ratio is heavily tilted to an abundance of RCs versus demand.
This is the situation that the community has to focus upon.
Applications Bear The Responsibility
Hive is going to be driven by the applications. What is built upon the blockchain will determine how the future unfolds. If projects are highly successful, kicking off the network effect by pulling in more users, we can see how the numbers shift rather quickly.
Applications are going to need to have their users engage. There is no way around this. An application or game is useless if people are not able to interact. If it is tied to Hive, on any level, it will require resource credits.
As the above image shows, any on-chain activity has a "cost" to it. Of course, the fact that RCs regenerate at a rate of 20% of the total, per day, is helpful.
What happens if Hive is able to get 100 million transactions per day? That sounds like a lot but it really isn't when you think about it. Consider all the activity tied to:
On Hive, each of these is a transaction. The daily total for all these entities is in the trillions. Therefore, we are talking about a small fraction of the global total. In fact, 100 million transactions on Hive doesn't even make a dent in what is taking place just in social media.
Hive Is Different
The resource credit system is rather unique. It separates Hive from most of what is out there. We discuss the potential of the Hive Backed Dollar (HBD) and how much of an impact this can make. Here again we see the same concept forming: RCs are required to engage using HBD. This means each transaction is tied to an investment in the "digital real estate".
Of course, we can push this out even more into the financial realm when we start to consider more financial products such as bonds, swaps, and futures. All of this could be constructed and tied to Hive.
In the end, the future of an access token is fairly clear. Just get the numbers up and the rest takes care of itself.
It is really nothing more than supply and demand.
If you found this article informative, please give an upvote and rehive.
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Ohh, yeah the blockchain is magnificently different, there's more to Hive than what people think it is, it actually a direct interaction with web3
Thanks for the insightful post @taskmaster4450
There is a lot going on although we are going in many different directions. This is something that is good since it will eventually interconnect.
Incremental steps forward can have exponential impact in the long run.
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Exactly, Wow I love this
Thanks for this very insightful post
I'm @josedam
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Smart analogy of Hive as real estate and a clear vision of the accessibility intrinsic values of it. I am amazed lately by different apps popping in from every corner of this blockchain and things can only help. And when we'll see some mammoth apps like Speak Network get released, that will truly exponentially grow this ecosystem.
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Even the "smaller" apps can have a major impact. They only need to bring in a few dozen dedicated users to have an aimpact. If we spread that across dozens of apps, compared to where we are, we can see a nice jump.
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This reminds me of a friend I onboarded whom I delegated to and she also got delegation from Leofinance, she murdered her RC like the user in this article and that was before the RC delegation.
Applications are surely going to need lots of HP to keep their users busy, just a few of those applications and it is going to be exciting as users seek RC to engage with the chain.
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Yes. I was able to delegate RC to get this user going. It makes things a lot easier. We need to keep trying to attract more people to Hive. There is a lot going on.
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I think as the cost of RC gets higher, users will need more of it to keep their activity going on the blockchain especially when there are many ways to engage or more fellow users to engage with. I did encounter the lack of RC to engage during my first days on the blockchain.
There is no doubt we will see things altered as more people start using it.
We are going to wake up one day to find out that things changed overnight.
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Why is there no emoji of someone nodding their head enthusiastically? Because if there was one, that would be me when I read this post.
We will have to drop that into the suggestion box.
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Tell them and they won't believe it, but for me I strongly see hive setting the pace for massive financial freedom more than ever before in years to come
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Well people often miss what is right in front of them. With Hive it is hard to see.
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Maybe it's just me, but I have a hard time believing that Hive will ever be a mainstream platform when we have people downvoting posts for reasons like this. And it's not like it's a rare occasion either. I see it happening all the time. This instance with @cageon360 just happens to be one of the more recent ones I remembered.
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The resource credit issue is a growing pain and I remember dreading it when I was first starting to be active. It's a unique aspect and I agree that the applications should bear the costs otherwise people will have a worst user experience.
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This is a beautiful analogy. At first, I did not fully understand the concept of activity on the chain but overtime, I realized the uniqueness of hive lies in factors such as resource credits for engagement, powered up hive (which has become my favorite these days) etc.
Thank you for this explorative and insightful post
Summing up what I learn from you so far about Hive:
For most people in developing countries that are deprived of real estate ownership due to the exclusivist nature of both the global and monetary system, the concept of Hive offering access to a digital estate by powering up the token is revolutionary. For this type of digital ownership to prosper, the number of users has to increase, and here lies the significant role of decentralized applications. These applications show the diverse and rich character of Hive as a digital asset. Hive is indeed an amazing technology where owners can do blogging, post both long and micro-content, engage, play games, upload videos, trade tokens, and do micro-earnings and micro-investment. As such, it appears that Hive is indeed the embodiment of an inclusive economic and monetary system that embraces all types of people: bloggers, traders, savers, investors, gamers, programmers, artists, musicians, photographers, etc.
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I think the entire concept of Resource Credits goes over some people's heads. Not because it's inherently complicated, but because people are so used to having "free" to use applications, like those you listed, where the user is the product (Payment For Order Flow, anyone?)
I think RCs inherently make Hive totally different from any other blockchain in existence, especially because the focus on Hive is content creation and gaming, and not just number-go-up and make me rich HYPE fomo cults like Bitcoin, Ethereum, or altcoins
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