Bitcoin Coming To Hive
It is likely we get a number of exciting announcements at the next Hivefest.
In the meantime, we got a bit of a teaser from the SpkNetwork team. They spent a number of months hinting at this addition yet, it seems, we are in initial testing stages.
What is this big announcement?
It is going to be the addition of bitcoin to the Hive ecosystem.
Basically, we are going to be looking at a way to move from $HIVE directly into bitcoin. What gets even more exciting is the prospect of being able to swap HBD for $BTC.
This opens up a world of opportunities while removing a major barrier to this ecosystem.
Access Any Fiat Or Crypto
Bitcoin is the king of the hill when it comes to exchanges and liquidity. There is nothing even close. Therefore, tapping into this only makes sense.
When there is the ability to swap our base layer coins for bitcoin, we can access any fiat currency or crypto. The path to all major exchanges is open. We know the tentacles of this coin are large, and we will be piggybacking off that.
Of course, the reverse is also true. By having this ability, money can come into the ecosystem through this same mechanism. Any token can be converted fairly easily into $BTC.
Use Cases
We often discuss the idea of use cases. This is extremely important for currency, especially stablecoins. With the Hive Backed Dollar (HBD), having outlets is crucial.
What is the top use case for HBD right now? I would say that buying $HIVE is the main utility. Here we see a direct path of purchasing something that people want.
Of course, that coin doesn't come close to rivaling bitcoin. With this addition, we are adding the ability to buy $BTC with HBD. That might quickly become one of the most utilized features. After all, the volume of $BTC/HBD swapping should be a lot higher than the internal exchange.
Whether it is trading, moving in or out of base layer coins, or simply adding to one's bitcoin holdings, this avenue is available. In fact, consider the potential of earning Hive-Engine tokens and being able to, with a couple moves, end up holding $BTC.
Hive As The Settlement Layer
What is the one drawback to bitcoin?
For most, the fees are at the top of the list. Perhaps some are put off with the speed of the network but that is usually secondary. What it costs to use this as a medium of exchange is the biggest hindrance.
This was the reason for the Lightning Network. Of course, that system has its own series of problems.
Much of this can be resolved with what is being built here.
What we are witnessing is the idea of Hive acting as the transfer layer for bitcoin. The wrapped version of the token will settle on Hive, meaning all the base layer attributes are present. We are dealing with no direct transaction fees, 3 second block times, and one block irreversibility.
Contrast this with Lightning which, due to the fees, has to batch the transactions to write to chain. With Hive, each transaction can be recorded as it occurs, going into the latest block. There is no need to wait since the only requirement is having some resource credits to post to chain.
No Longer An Island
Hive operates as its own island.
This is something that is not an issue for the moment. We are still building with many pieces of the foundation still being put into place. In the latest developer call, we find that HAF is really giving developers options when it comes to setting up APIs. This is something that is going to allow for great customization while also enabling smaller API operators.
By linking the base layer coins to bitcoin, we no longer are an island from a cryptocurrency perspective. The ability to swap directly on our own sidechain means we have access both in and out.
We all know regulation is coming and Hive does not fit into that mold. This is likely to be strictly a decentralized finance (DeFi) system since the coins will not be allowed on centralized exchanges. This is where using DeFi tools enters.
This is not the case with bitcoin. It will be embraced by all related to finance. We are going to see the largest financial institutions in the world acting as custodians for bitcoin.
While Hive offers a lot more than financial, we cannot overlook the importance of this. It is still what draws the attention in the Web 3.0 world. Certainly, this is much larger than cryptocurrency also but it is likely to be an important piece of the puzzle.
There are a number of things that are still required to make Hive a legitimate player on the Web 3.0 stage. The base layer is shaping up. Now it is building the infrastructure on the second layer that is related to these services.
Social media is no longer without finance. The two are merging. That means having the ability to handle both as users require. One key is going to be entering and exiting the coins in a way that allows users to move onto the larger world.
While we do not have the details, it appears what the SpkNetwork team is bringing forth will solve this problem.
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If this comes to be, oh man. Awesome fracking sauce 😎
The addition of BTC to the Hive ecosystem will be a great move forward and will give an opportunity to Hivers like me to own even a small piece of the crypto King.
you can trade swap.btc already since a long time on the Hive Engine.
Is that so? Thanks.
Yes exactly.
swap.btc is centrally controlled and issued. It is not decentralized and it poses a significant risk to the community. It's already been hacked in the past resulting in funds lost as prove of such an issue. SPK aims to bring fully decentralized swapping that remains trustless and secure. More details will be announced at HiveFest.
Bingo.
Oh, good to know.
oh never knew it had been
It will help a great deal.
“ Basically, we are going to be looking at a way to move from $HIVE directly into bitcoin. What gets even more exciting is the prospect of being able to swap HBD for $BTC.“
Doesn’t this already exist? Brian of London solved this didn’t he?
Will he be a part of this upcoming announcement? Or this is separate thing?
Either way sounds super interesting as someone who’s always thought Bitcoin & Hive are both complements to one another! Cheers 🍻
Exactly
Yes Brian solved this in some way. Sounds like this may be a next step bigger way. 🐸
It is a sidechain with BTC wrapped on a Hive based sidechain and settle on Hive.
v4v is an exchange that provides an interface between HIVE/HBD and BTC LN. It is not a wrapping system and doesn't allow for ownership of BTC on Hive itself. What this will enable is the ability to actually hold wrapped BTC on Hive. In the addition it opens up the potential for DEXs that allow more direct means of exchange.
Regardless, v4v will play an important role in providing an exchange point for this wrapping system, but it is not the wrapping system itself.
Thanks for the clarification on that.
He does it through Lightning Network. This can be thought of as a competitor to Lightning in terms of being infrastructure.
And it’s going to be decentralized? Pretty interesting indeed!
Bitcoin is cool an all but please bring in something like XRP as well because bitcoin fees are ridick
The way these describe it, we are going to see the settlement layer being Hive, not Bitcoin once the wrapped version built. As Vaultec clarified, it ties into LN.
So many blabla, what is the news now? How will be BTC brought to our ecosystem? There is already swap.btc, by the way.
Not even the link to the announcement was given.
It was discussed on a number of CTT broadcasts and they said there will be a presentation at HiveFest.
This will be great, although I am wondering how it will work in detail
Tp be presented at HiveFest according to what they said.
Can't this be done already with v4v? Or am I wrong?
No, you aren’t wrong, this is not new
I mean we already have exchanges, v4v is another exchange. It's simple an exchange from Bitcoin LN to/from Hive. It does not do native wrapping or anything that actually allows ownership of BTC on HIVE itself. What's being discussed here is building a fully decentralized swapping bridge allowing the BTC to effectively live and operate on top of HIVE and enabling to/from transfers with the Bitcoin mainnet from your hive account.
v4v will play an important role in providing an exchange point for this wrapping system, but it is not the wrapping system itself.
I understand what you are saying but I have another question. It is possible to have BTC in Hive-engine but do you consider it centralized? Would this be otherwise?
swap.btc is wrapped BTC, but it is centralized through a single entity to handle uwrap/unwrap. This would be decentralized using smart contracts and many separate nodes to handle wrapping/unwrapping BTC to HIVE.
Okay. Thanks for your answer. I'll be watching to see how it works.
That is the first piece of the puzzle. But getting BTC wrapped and using Hive to settle is the big step.
The future is looking good for hive , I think this will be huge
Technically, this function already exists as a SWAP.BTC <--> SWAP.HIVE utility on the Hive-Engine. I am presuming you are saying they wish to make BTC a Layer 1 asset and swap directly at this layer? I am not sure I would be so enthusiastic about such a mechanism, as it would expose the Layer 1 of Hive to BTCs designed volatility. Leave it as a Layer 2 swap system. It is already a steady top 10 in volume there. If people wish to increase the volume, let it happen there, off the Layer 1 wallet.
SWAP.BTC is centrally issued and controlled. You have to trust the deposits will not get stolen by the provider and will behave correctly. In fact a hack occurred stealing 10s of thousands of dollars happened a few years back resulting in BTC lost. This poses a significant risk to anyone using SWAP.BTC and treating as safe as normal HIVE or native BTC.
SPK aims to build a swapping layer that is fully decentralized and trustless retaining a high level of security through smart contracts and other mechanisms. More details will be released at hivefest in Sept.
This sounds amazing, I can't wait.
This is exciting news but i thought this has already been introduced in to Hive engine?
Vaultec clarified a few times. Read the comments above.
He explains how Spk is doing it differently.
Okay. That's great
Muy buen post, información importante para este mundo digital
The maybe we can work on stuff like stake Bitcoin and earn hive?? Or stake hive and earn Bitcoin??
This will allow for such wrapping and defi on hive
There could be numerous things set up in terms of DeFi.
Once the infrastructure is in place and the potential there, developers will have the option of what they build.
Exciting! Something better than SWAP.BTC ??
Absolutely.
I invested yesterday 300 euros in Hive. This post sounds pretty good to me. I am a believer.
!LUV
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! help(no space) to get help on Hive. InfoWelcome to the party. I invested in Hive in my early days too.
I am a believer also.
Are we talking about
The first two would not be particularly new or special, the third would be but a significant technical challenge to do it right.
It’s the first two.
Hive has no decentralised bridge to BTC. We believe without such a bridge, liquidity will be removed from hive over the coming months / years. Without a decentralised, non KYC bridge, hive essentially has a huge attack vector that could finish it off. With a decentralised bridge, hive becomes impossible to shut down or attack via removal of liquidity. We expect hive to be delisted from exchanges and any centralised bridges to be forced into kyc or shut down. (Maybe we are wrong, but this is serious stuff and we don’t want to take any chances).
Having btc moving around hive via a decentralised non kyc bridge essentially makes lightning network obsolete, and is something Brian of London will relish in as he shows the lightning bros movement of btc without fees via decentralised bridge where no kyc can be done and no attempted shut down can be done
Item 3 will be possible with VSC smart contracts on layer II
Absolutely: we need the decentralised input/output side, but I've got the template for that.
When that is coupled with a wrapped BTC/sats system within Hive itself, backed by over-collateralized deposits of HBD, we're going to be looking at something very new.
It’s impossible not to be excited about hive
I am convinced.
@starkers: please bring Dr Of London on the show to talk about this. This is exciting news!
I think I'd be more excited about it if it were USDT or something similar that is also "handled everywhere." BTC is a nice name dropper, but functionally has less utility, and the transaction fees are heinous.
What would be really useful for Hive would be if there were a "buy crypto with a credit/debit card" option that actually supported Hive, directly. Currently you have to buy any number of other cryptos, and then swap to Hive.
My point here being that what we desperately need around here is (a) ease of use and (b) features that make Hive appeal to those who are not already IN crypto. As in, being the option that addresses "I thought crypto was really complicated, but Hive made it easy!" THAT is worth pursuing. And THAT would drive new adoptions...
=^..^=
Agree with adding usdt, but btc is censorship resistant. Usdt’s backing assets are held and registered in regulatable jurisdictions. It’s a huge risk.
Btc as an exit liquidity layer is a gift from the universe. The system has not seen how much it shoots itself in the foot by embracing btc.
We just use btc as exit liquidity layer to fiat until there are enough hive and community tokens everywhere where we created circular economies.
Once that is complete we have a true separate, alternative economy that cannot be KYC’d.
The decentralised bridge to btc is essential to this.
No other chain can distribute like hive. All other chains distribute via mining rewards or defi. Plus they are made with icos that give regulatable VC the control over those eco systems.
Hive stands alone in its ability to distribute and without no VC. A decentralised btc bridge gives us protection liquidity until distribution is complete
That already exists?
The one advantage to BTC is the fact that even the SEC has stated it is not a security. With the stablecoins there is great regulatory uncertainty. USDT has always had people questioning the backing. What happens if the US Congress bans it since the company does not have a banking license?
Circle has filed and will submit to audits. That is going to be a minimum in any US legislation.
This will obviously be a special addition to Hive if it finally arrives.
Really positive news and I see this as another opportunity. Our bags will keep on growing and this is good news.
BTC merging nwith give will build a further standardized ecosystem, an opportunity for us all to have a tip of the crypto hero
It provides options.
Excellent news, The blockchain doesn't stop ! ☺️
Will this affect the value of upvotes?
Maybe over time. It could end up helping HIVE to become more valuable.
I doubt upvotes will be directly affected. Maybe tipping with wBTC, but that's separate
interesting thread
This is very exciting news!
https://reddit.com/r/btc/comments/15wyh41/bitcoin_coming_to_hive/
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This could completely change the valuation of hive
Well this is exciting news!!!
Maybe I am wrong in my thinking, but I wish someone (obviously with more development knowledge/availability than myself)...cough...cough... @khaleelkazi would just make a HIVE/HBD bridge to thorchain 😜
That would get BTC/ETH and several other top crytpos in a non-KYC, mostly decentralized fashion.
Maybe even team up with @theycallmedan and 3speak....maybe they are!! I guess we'll just have to wait and see.
Bottom line is though, if Speak can truly do this it will go a long way to stabilizing Hive for the long run.