Simplifying And Understanding The Hive Layer 2 - The Engine Of Hive


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A lot of people seem to be confused by Layer-2 solutions. What the heck is Layer-2. Is it like the Nutella over a bread slice?

To begin with Layer-2 solutions were primarily developed to address scalability issues.

For example the Polygon network, one of the most popularized Layer-2 solution emerged for the Ethereum blockchain.

Ethereum transaction speed is super slow. As a result increased number of transactions lead to network congestion and hyper inflated gas fees.

It's not a rare sight to witness people crying over the Ethereum gas fees and slow transaction speeds.

To mitigate this, Polygon was introduced as a Layer-2 solution.

What a Layer-2 does is, it takes the transactions off the main chain and processes them on a parallel chain instead. Increasing the transaction processing speed and throughput whilst also providing the main blockchain required room to breathe and operate efficiently.

But all the data and transaction records are still posted and saved on the main blockchain. Keeping the security, transparency and the end level decentralization intact.

In a nut shell, Layer-2 solutions can help in addressing certain inefficiencies and incapabilities of a blockchain whilst maintaining the complete network security of the main chain (Layer-1).

A Layer-2 is a separate network though. It is built upon the main blockchain network i.e Layer-1.

Layer-2 solutions can be of multiple types. Depending on the kind of protocols and structure they use to interact with the main chain. Which is influenced by what they intend to achieve with a separate network.

But we don't need to delve into all that and make it more complicated. That's all you need to know.

Hive Engine - The Hive Layer-2

Like I said Layer-2 solutions can be of different types built to cater different requirements.

But since Hive is no slouch like Ethereum. The need for a Layer-2 sidechain mainly arose to run smart contacts.

'Smart Contacts' make it possible to program/code/develop anything on a blockchain.

But the ability to execute smart contracts written by external users needs to be coded into the blockchain first. Or either you can use the Layer-2 to execute smart contacts by running them off chain.

Since Hive doesn't have the functionality to execute smart contracts yet. The Hive's Layer-2 solution i.e Hive Engine is the escape.

Which makes it possible to create and launch your own tokens at Hive. And liquidity pools. And blogging front ends. And even custom programs if you are a software developer.

Hive Engine provides a more user friendly interface suitable for non developers. Which adds and executes the smart contracts based on the parameters provided by you, to create a token or a liquidity pool.

You can check all of their offerings here Tribaldex

Hive Engine - The Ownership

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Since Layer-2 is a separate network. It can either be centralized or decentralized.

Meaning the network servers can either be owned by private individuals, groups or entities. But they can also be decentralized just like Hive.

Hive Engine is scripted on a decentralized network.

Witness and nodes. You must have heard of these words.

Like anyone can run a Hive node and contribute their machine's resources to verify the transactions happening on the Hive blockchain.

Similarly anyone can run a Hive Engine node and take part in verifying the transactions happening on Hive's Layer-2.

But instead of HIVE they earn BEE tokens (native token of the Hive Engine) for verifying the blocks.

In a similar fashion to Hive, becoming a Hive Engine witness also allows you to take part in its governance and subsequently the direction of its development.

Hive Engine - Tokenomics

BEE & WORKERBEE is the dual token setup Hive Engine relies on.

WORKERBEE - it is the miner token. And staking WORKERBEE mines BEE token by enabling you to verify blocks. The more WORKERBEE you stake, the more are the chances of network assigning you a block to process and earn BEE.

BEE - it is a token used as the main currency to employ any of the Hive Engine services. Creating a token or developing a frontend or setting up a liquidity pool, everything at Hive Engine requires you to pay in certain amount of BEE tokens.

Here is good tool - HIVE Monitor - developed by @primersion to check the Hive Engine witnesses and the staked WORKERBEE. it also shows the details about Hive witnesses.

Hive Engine Wallet

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Since Hive Engine is based on a sidechain that is different than the main blockchain. It also has a different wallet to interact with the Dapps and Services present on the Hive Engine.

That's the reason why you first have to convert the native Hive tokens like HIVE and HBD into their pegged Hive Engine versions namely SWAP.HIVE & SWAP.HBD to use them with the services present on Hive Engine.

Except for the SWAP versions, rest all the tokens are native to Hive Engine. As I have already clarified that any kind of external user development is not possible on Hive's i yet. So all the other tokens on Hive have been created on the Layer-2.

And you'll have to access the Hive Engine Wallet to fiddle with them.

Ways You Can Use The Full Potential Of The Hive Engine

If you are here, you must have already used/interacted with the Hive Engine knowingly or unknowingly. Whether the exchange to buy/sell a token or the Hive Engine wallet to stake/unstake/delegate any Hive Engine token.

Developers can use Hive Engine to easily integrate their web projects with the Hive blockchain. If you want to deploy your own smart contract script, though feasible, the functionality is not yet available. But you can contact the Hive Engine team and developers community at Discord and they will help you with that.

Normal users can use the Hive Engine for -
1.) Creating and launching their own token
2.) Setting up the functionality to distribute your tokens through a reward pool
3.) Getting a custom website/platform developed to interact with Hive
4.) Creating and setting up a liquidity pool
5.) Setting up a legal businesses in USA and foreign countries
6.) Executing other relevant token functions - like token funds, airdrops, mining etc.

And more functionality is being developed and planned to be added to this list.

A lot of people who are not coders are running their own businesses at Hive like dividend projects, commission based curation projects, marketplaces, niche blogging tokens and platforms, interest communities, engagement projects, asset management funds etc.. etc.

Anyone can use the Hive Engine services to establish their own business. You can hop on their Discord for any further information, clarification and help -

@aggroed publishes the recent updates and changes to the Hive Engine and some other projects as well. You can follow him to remain updated about the latest developments and happenings.

Relevant Web Interfaces Of Hive Engine

Hive Engine - Token marketplace, creator, explorer and wallet.
Tribaldex - Hive engine exchange and service aggregator including liquidity pools, NFT marketplace and various token contracts

Happiness is - Bringing smile to the faces. Please upvote and reblog if you find it helpful.

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This is great information about Layer-2 of Hive, this will surely help a lot of people. Great Job the explanation looks simple and easy to understand, keep it up!



Glad to know you liked my article. Thanks a lot for all the appreciation and support. 😊 🙏. Means a lot.

Keep Hiving & Showering Love


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Well this is awesome!!!

Great job at going over the entire Hive Engine platform. Ton of info and very useful for anyone looking to build on it!

Oh and thanks for using ListNerds to promote it, I saw the link from there!


Wow, thank you for landing here and all the appreciation mate.

This was my first mail. I am loving the listnerds. Its a cool approach to marketing. And also saw your pic today while exploring liketu, you seem even cooler 😎, haha 😄.

Getting verified gonna be a bit challenging I guess. But I will keep up with it. Thanks again for acknowledging my mail sir 🥳 Also have some !PIZZA


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