Web 3 Requires Zero Gas Fees: They Are Talking About Hive Again
It is amazing that, as time passes, more people are talking about Hive. Of course, this is being done without them noticing since Hive is still flying under the radar. While that is upsetting to many, it is actually a major blessing. It provides Hive with the time to get infrastructure in place and develop the foundation that is required.
Nevertheless, the progress that was made over the last few years is really starting to stand out when we contrast what else is out there. We see people making claims about what is needed not realizing that Hive is already providing it.
Ultimately, as advancement is realized in many different areas, the gem that Hive is will be revealed. This is will likely take the blockchain world by storm.
Once again we see an article detailing how someone is coming up with a solution that was already on Hive for years.
Source
No Transaction Fees
This is at the core of Web 3.0 according to an article that appeared on Blockworks.
It details how SKALE is bringing a new model to Ethereum. Under the typical construct, users pay block producers transaction fees. This is a problem since many feel users will shy away from social media applications where fees are required.
SKALE takes things in a different direction by allowing applications to pay the validators directly, in exchange for the removal of transaction fees on its users. This is an interesting concept which is certainly a step forward.
Will it be the solution?
Here is where Hive stands out. To engage in this blockchain, there are zero transaction fees. Access is granted by the accumulation of Resource Credits, which are acquired by staking the $HIVE coin. Thus, while there is a "charge" per transaction, the Resource Credits regenerate throughout the day.
Here we see the ability to interact with the Hive blockchain move to an investment as opposed to an expense. Under the SKALe scenario, there is still an expense incurred for engagement. They are simply shifting who is responsible for the payment.
Thus, we cannot say the solution is offering zero gas fees. This only applies to the user, not the overall system.
With Hive, we can say there is zero expense on the part of either users or applications to access the blockchain.
Resource Credit Delegation
We see an additional feature being added in the next hard fork which, ironically, does follow the SKALE mindset.
Resource Credit delegation is going live. This will allow anyone with $HIVE staked to delegate their excess RCs to anyone who needs this. Here we see the concept SKALE is implementing coming to Hive.
Instead of individuals powering up $HIVE, the applications are the ones who can make the investment. Then, to enable interaction, the RCs can be delegated to newer accounts, allowing them to operate. This shifts the investment onus from the user to application.
However, it is still not an expense. By holding $HIVE, the application is betting on the future of the ecosystem along with enjoying any price appreciation that can occur over time. With straight transaction fees, the money is spent. This is the process that SKALE is providing.
Accessibility is vital to scaling. If applications cannot onboard users and get them active, an ecosystem will not go very far. Transaction fees are certainly a barrier, especially when it comes to social media. Web 2.0 does not charge directly, something that users are accustomed to.
Of course, this is subsidized by the sale of data along with advertising. Hence, users end up paying, just not directly. Here we also see where there is no financial benefit to the users.
With Hive, for those who opt to either invest in the coin or get rewards, the option is to stake it. This puts the user in position of not only having access without delegation but also to enjoy the potential growth in value that could come with holding the coin.
Taking Things For Granted
It is easy for us to take things for granted. The ability to operate without issue on Hive is something that most of us overlook. Yet, when we step back, we can see how novel this is.
Many detest Ethereum because of the fees. This is a problem that is hindering the expansion of that blockchain. While there are plans to address it, resulting in lower fees, that does not negate them.
Even this new solution does not put forth a zero fee environment. So far, Hive is one of the few to offer that.
Does wrapping the cost as an investment rather than an expense make a difference? We will not know for a few more years. However, we can say that this is in alignment with Web 3.0 principles. There is not a centralized entity which financially benefits from the success of the system. With Hive, each person holding stake will participate in any price appreciation. Of course, the stake also allows for governance participation, something that does not come from paying transaction fees.
Another focus of the hard fork that is about to take place is the upgrade to the system in general. We see a reduction of the size of the blockchain of 50%. This means the server requirements are reduced. At the same time, all blocks are compressed by the validator and sent to the other nodes in that state. This makes the overall operate of the blockchain more efficient since there is only one node compressing the data.
We have no idea how many transactions per day the blockchain can handle. However, we do know that a few million each day is done without issue. Once again, when we talk about scaling, Hive spent a lot of time making sure it was excelling in that area.
Ultimately, it is going to take a lot more than a CryptoKitties to crash the blockchain.
Hive is going to be at the center of Web 3.0. The more people discuss what is required, the more they are talking about Hive. When it comes to utility, $HIVE is one of the leading cryptocurrencies.
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STOPI’m hoping that we soon see extensive use of RC pools, not just RC delegation.
There won't be RC pools. We could implement something similar to EOS resource market (and from technical point of view it would be even cheaper and simpler to operate than direct RC delegations), but as far as I know there are no plans for that.
There is (always was) a way to make something that would resemble RC pools, although it has some limits. You can create a "pool account", delegate some HP to it (fill the pool) and then give selected users authority over that account (pool beneficiary). First limit is how many users can be supported by such pool - 40 if I remember correctly is the limit on amount of account type authorities, so you can't give access to the pool for more users. Second problem - it increases RC cost somewhat. The way pool is used is to put small custom json at the front of the transaction that you want to finance from the pool (that is the source of extra cost). That operation needs to declare the pool account as required authority. This way RC will be taken from the pool (it is always taken from first account which signature is required in transaction) and user can still sign with his own private key, as he is part of pool account authority.
Well that sucks. So nothing like delegating HP and in return earning a passive stream of Hive/Leo/TokenX?
I guess I wasn’t paying close attention, I thought that was the obvious thing to build. For me at least, the new RC plans are a big disappointment then.
Of course, my little world of self-interest pales in comparison to how this might improve the blockchain over time. A more robust chain is good for all.
There was never such on-chain mechanism, but it does not mean there can't be one on second layer. If you have a plan how it should work you could even create a proposal to finance implementation and make it yourself :o)
This I can relate to staking existing on Hive long before DeFi became a thing allowing staking. We tend to be ahead in the game and while they are trying to catch up we are busy with the next development.
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I've been saying for a while that we really take things for granted here. The idea of fast fee-less transactions is just second nature to us. It's only when I need to use ETH for something that I am usually reminded of this!
Sounds a bit similar to the current credit card system where businesses can either pay a subscription to cover the processing fees or pass those along to the buyers.
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I totally agree with you that, over time, the infrastructure has been prepared, and in time, everything will be ready.
What you are reviewing is very complete and almost exhaustive in terms of mentioning what people are looking for and what they require for survival.
Allow me to use your analysis as a #Hive promotional material for those out there, Mr. @taskmaster4450
https://twitter.com/1480840258828779521/status/1579521017395171334
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https://twitter.com/1415155663131402240/status/1579629247609851905
The rewards earned on this comment will go directly to the people( @mypathtofire, @wilsonthe, @rzc24-nftbbg ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
They're trying to make no gas fees (for the users) as the standard for Web 3.0 since users don't directly pay a fee to access or interact with Web 2.0 platforms. I don't think it will sustainable in the long term especially if scalability happens on the platform.
The great thing is that it shows that Hive is on the right track and some steps ahead of its time.
Zero fees via rechargeable RCs on stake coupled with a small inflation going to an elected group of validators. From there the projects can find ways to burn Hive, (HBD Stabilizer is such a project) as will Ragnarok and SPK Network. The ultimate security comes from inflation yet the coin is overall deflationary. Of course there is a world where you can have a SIP, and thus removes the need for inflation, but even then inflation is needed on a flip switch basis for the most security.
No fees is the main reason I finally chose to settle with HIVE and its ecosystem. I could never imagine to have to pay fees for each transaction you make in the blockchain, a concept like Hive.blog would be instantly useless. It is very true and thanks for pointing out the obvious. Sometimes we forget what we have, we should be thankful of it
one of the best
Hive. Always ahead of the game.
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It is funny how for fiat people are usually against inflation, yet the system that is financed through inflation is chosen over the one where everyone pays directly for what they are doing. And don't get me wrong, I feel the same way - Hive model is superior to Ethereum model in that regard. So maybe the problem is not the inflation itself, but its instability caused by politicians. Or one more difference might be the key - with Hive inflation the richest accounts pay the most (are most affected by inflation), but in case of fiat rich people are not rich due to how much money they have in the banks, but due to other assets they hold, and those assets increase in price due to inflation. However, asset management is not free. As a result, in the world of fiat its those that have some money, but not enough to cover asset management costs, that end up paying the most (the middle class).
The price of gas from the network is looked at differently depending on the users. A Venezuelan or Cuban would not make a transaction on Ethereum without a well-justified purpose, gas would represent much more than the average daily wage, impossible for many in this world. The potential of Web 3 is in the massification of its use and for that everyone should have the opportunity to use it, which is achieved if the cost of its use does not mean a day without eating. Thank you for your post.
I !love that last statement:
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It's kind of funny to see them propose a solution similar to Hive after all the changes sin ETH. I guess they do understand that users don't like transaction fees and the new model would push that cost on the application owners.
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what? hive is amazing..future money
Truth be told , Hive’s services and potentials are really being slept on. It is a huge plus for this decentralized blockchain platform to give its teeming users the ability to go about their activities on here without any transaction fee whatsoever. Eth users unfortunately can’t say the same . I believe with time Hive will really be a talking major point , I mean it is living up to its potentials.
The WEB3 era will be the success of many ecosystems that work and interact together. Paying some fees is not a big problem if this helps the ecosystem to stay secure.
Very well, I believe Hive is still underrated. But like you said, it is giving us perhaps more than enough time to build up our structure such that when more users come in there is enough to convince them about what Hive is capable of.
You explained how RC is used instead of gas fees. Honestly, I got to know about that recently when I read the white paper. I must say, how brilliant that was! I think I should get to read some more white papers on projects soon.
And how with the latest Hard fork, RC delegation shows forth...
As someone who recently went through the onboarding process, I can say that gas fees were the LEAST of my worries as I tried to get up and running on this blockchain. I won't go into all of the gnarly details here, but suffice to say that had I not been massively helped by someone who's been here a long, long, time, I would've given up days before actually getting a wallet and purchasing HIVE. Hell, I wouldn't even have an account if it weren't for him!
Before evangelizing the future, HIVE needs to get their present ducks in a row. I think this is a nifty system and economy, but accessible? Not even close.
I was surprised at the amount of difficulty you had, too. I guess I've come to take a lot for granted.