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Hive

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About Hive

Hive is a decentralized blockchain network that operates as a social blockchain. It was founded in March 2020 as a hard fork of Steem, with the goal of creating a more decentralized and censorship-resistant social blockchain. The Hive platform allows users to publish content and be rewarded in cryptocurrency for their contributions.

History of Hive

Hive was created by a group of Steem community members who were concerned about the excessive centralization and lack of transparency in the Steem blockchain. In February 2020, Steemit Inc., which owned a major stake in the Steem network, orchestrated what some viewed as a hostile takeover of the blockchain. This raised alarms about the excessive power held by a single entity.

In response, a group of Steem stakeholders forked the codebase to launch Hive as an independent blockchain. The new Hive chain was designed to limit the influence of any one group or individual and create a more decentralized governance structure. The Hive community airdropped HIVE tokens to STEEM holders who opted in. This allowed many users to seamlessly transition to the new chain.

How Hive Blockchain Works

Like Steem, Hive utilizes a Proof-of-Brain consensus algorithm that incentivizes quality user contributions. When users post content or vote on posts, they earn Hive tokens as rewards. The system places more value on posts that receive greater engagement and higher quality votes from reputable users.

Hive operates on a delegated proof-of-stake model. Hive token holders can vote to elect ‘Witnesses’ to secure the network and produce blocks. The Witnesses act as block validators and rule enforcers. Having Witnesses chosen democratically helps prevent centralized control over the blockchain.

Features of Hive

Some key features of the Hive blockchain include:

Censorship Resistance: Content cannot be altered or removed by a central party. This preserves freedom of speech.
Fast Transactions: Hive offers 3-second block times for quick confirmation.
User Rewards: Authors earn Hive tokens when users upvote their content. This incentives quality contributions.
Decentralized Apps: Hive supports community-built apps for social media, gaming, finance and more.
Low Fees: Transactions on Hive have negligible fees, making micropayments viable.

Hive’s Consensus Algorithm

Hive utilizes a unique consensus mechanism called Proof-of-Brain to incentivize users and distribute power. The algorithm rewards users who post high-quality content that receives upvotes from other reputable users. This places the value of content above the wealth or influence of any one user.

Post payouts are calculated using a scoring algorithm that considers the post’s quality, author reputation, voter reputation, post engagement and other factors. Quality content earns greater rewards. Spam and abuse are disincentivized through diminished payouts.

This design aims to keep power decentralized between all users. No one entity can seize control over the consensus process or censor others. The community collectively moderates itself through voting.

Hive Token

The native cryptocurrency of the Hive blockchain are called Hive tokens (abbreviated HIVE). Like STEEM, Hive tokens possess utility as a digital currency, governance token, and reward mechanism.

A fixed amount of new HIVE is created each day through block production and paid out to content creators, curators and Witnesses. This introduces new tokens into circulation as an incentive.

Users power up HIVE into ‘vests’ to boost their voting influence on content and Witnesses. The vesting mechanism encourages long-term commitment from token holders.

As a utility token, HIVE can be traded on exchanges, used for payments, or held as an investment. Its value is driven by community activity and demand.

Hive’s Decentralized Applications

In addition to social blogging, Hive supports a growing ecosystem of decentralized applications (dApps). These community-driven apps expand the utility of the Hive blockchain.

Examples of popular dApps on Hive include the gaming platform Hive Engine, the social network eSteem, the blogging site PeakD, and the apps LeoFinance, 3Speak and DTube for finance, video and video sharing respectively.

Because they are decentralized, these applications are owned and controlled by the community rather than a centralized company. Anyone can build dApps to leverage Hive’s low fees and active userbase. The blockchain’s shared security model protects all dApps in the ecosystem.

Governance Structure of Hive

Hive utilizes a democratic governance model where stakeholders collectively control network parameters and development. Any changes to blockchain economics or technical features require stakeholder approval.

The primary stakeholders with voting influence on Hive include:

Token Holders – Vote on Witness elections and policy changes. Influence proportional to vesting shares.
Witnesses – Validate transactions, produce blocks, enforce policies. Elected by token holders.
Workers – Perform specialized network functions like curation, QA, coding. Elected by token holders.

This multi-stakeholder process aims to prevent centralized control. No single party can dictate activity on the blockchain without broad alignment across the community. Collectively enforcing policies helps make Hive a public, permissionless network.

The decentralized governance structure of Hive provides transparency, aligns incentives, and gives users a voice in decision making. This empowers the community to guide the direction of the blockchain and dApp ecosystem.

How to Invest in Hive (HIVE)

Investing in Hive gives you exposure to a unique social blockchain that rewards users for quality content. As activity on the network grows, increased demand for HIVE tokens may potentially drive the price up. Here are some tips on getting started with investing in Hive:

Acquire HIVE Tokens – You can purchase HIVE on cryptocurrency exchanges like Binance and Bittrex. Be sure to store them securely in a wallet you control.
Stake your HIVE – To gain more influence on the platform, you can stake your HIVE tokens through a process called “powering up”. This converts them into vesting shares and increases your voting power.
Earn HIVE – Participate on the Hive platform by posting content, commenting, and voting to earn HIVE rewards directly through Hive’s built-in incentives. This allows you to grow your investment.
Hold Long Term – Hive encourages long-term commitment from token holders through vesting. The more tokens you hold long-term, the more say you’ll have over governance decisions.
Vote on Witnesses – Research Witness candidates and vote for ones aligned with your values. Witnesses help secure the network and direct development.
Build on Hive – If you have developer skills, you can create decentralized apps and services on Hive to capture value from its growing user base.

As with any cryptocurrency, investing in HIVE tokens carries risks like volatility. But over the long-term, actively using and governing the Hive platform can potentially yield returns on investment.

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FAQ

Hive (HIVE) is a decentralized blockchain platform that focuses on fast and free transactions, with an emphasis on social media integration. It was developed to address the issues of centralized social media platforms, offering a censorship-resistant alternative where content creators are rewarded with HIVE tokens.

The Hive network was founded as a result of a hard fork from the Steem blockchain in March 2020. This action was taken by a community of developers and stakeholders in response to concerns over centralization and control of the Steem blockchain by external entities.

Hive operates through a Delegated Proof of Stake (DPoS) mechanism, which is more energy-efficient compared to traditional Proof of Work (PoW) systems. In DPoS, token holders vote for a small number of delegates who are responsible for validating transactions and maintaining the blockchain’s integrity. This system not only enhances transaction speed and efficiency but also decentralizes the network’s governance.

To purchase HIVE tokens, interested parties can visit several cryptocurrency exchanges. Some of the most prominent ones include Binance, Huobi, and Bittrex. Users should compare these platforms to find the one that best suits their needs in terms of fees, security, and user experience.

For storing HIVE tokens, users have several options. The most recommended are hardware wallets like Ledger or Trezor for maximum security. Alternatively, Hive tokens can be stored in software wallets that support the HIVE blockchain, but these might be less secure than hardware options.