What the fork is happening?

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I got a few calls about the Hardfork today and some of the callers raised concerns about it. The calls were mostly about whether Hive is going to turn into something else, because, well, that's how Hive was formed in the first place right?

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Okay, let's start from the beginning, so we can all be aware of the situation. In Blockchain terms, a hard fork is kind of like an upgrade/tweaking of certain parameters and it is only achieved when there's a consensus between the witnesses, servers or whatever that network uses.

Hive's formation was also a hardfork, since it was technically an upgrade of the system that was meant to fix the Justin Sun situation and of course sort out the Ninja mined situation. In a situation where there is disagreement, a hardfork will still happen but in the situation that formed Hive, some witnesses chose to retain the Steemy way and others switched to the hive side of life.

Okay, now we're here today and we're doing Equilibrium Hardfork and technically speaking, we're creating a new network but not like the Hive vs Steem way because there's no disagreement amongst the top witnesses that handle most of the block producing. So, in essence, this Hardfork will create a new network but it will be a seamless migration and will seem more like an upgrade than the creation of a new Network.

What the actual fork?

Okay okay, calm down. The fork is actually a good thing because it is going to fix bugs, increase the speed of transactions and make Hive prettier. Amongst the upgrades, there will be a couple of new additions that will make Hive more fun. Among the changes, my favourite is in curation and the two-way HBD stabilization thingy that I've always wanted.

Two-way HBD stabilization thingy

This new feature will allow users to convert Hive to HBD. Remember that we're only allowed to convert HBD to hive in a mechanism that assumes HBD to be $1 and then swap it to Hive at the price of Hive.

Now that we're adding this new feature, we will be able to exchange Hive for HBD and hold stables. On top of that, there's also more incentive to hold HBD since you will be paid interest for keeping it in savings.

Through this process, Hive aims to create a self-sustaining stable coin. So that's one step closer to DeFi and if it works out, it will be big for Hive in the coming years.

Curation

I'm particularly pleased about this part because it will make curation more fun around here. It will reduce the complicated method of curation by flattening the curation curve for 24 hours. You won't also receive any penalty for voting too early.

I think this move is pretty important in the general scheme of things because it will encourage more manual voting. Speaking of manual voting, the upgrade will also prevent redundancies in witness votes.

This basically means that you have to actively manage your votes at least once a year or else the votes will just be deleted. That makes sense on the surface of it but it would be even more awesome if there was some sort of incentive for voting witnesses like they do on Tron and vite blockchain.

Not forking around

So the point is that Hive is upgrading and your funds are safe. Exchanges are supporting the fork, so you might want to hold off making any transaction for a while.

Once the dust has settled and everything is confirmed to be working fine, life will be back to normal. The fork is scheduled for 2pm UTC, and if everything goes well, then I'm sure everything will be back to normal by tomorrow.




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6 comments
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Thank you for this nice summary. Let's hive on! 😎

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wow this is great, the upgrade is needed, it shows that the HIVE team is actually working and providing a better system for us.

The upgrade concerning voting is cool as many find it difficult to vote in the platform.
Thank you for the update.


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