Hive As A Settlement Network

The is a lot of discussion about what the future of cryptocurrency holds. With the bear market upon us, many feel the Crypto-Winter could be the end.

Fortunately, this is not the case. As is often the case with technology, the market and advancement in terms of innovation. The former has a way of getting ahead of itself.

With cryptocurrency, this is certainly the situation we saw unfold. However, with the removal of excess (some might say insanity), we are starting to return to basics.

It was not too long ago that the headlines were all about Bitcoin going to $100K or Ethereum topping $25K. These are replaced with those discussing the future from an innovation stand point. What is this going to do?

That is something we have to focus upon. They say bears are when the builders come out. We are now seeing ideas tossed about of what the next generation of things is going to look like.

One of the major things that makes cryptocurrency impenetrable is the fact they cannot be separated from one of the most powerful mechanisms we saw in a long time: blockchain.

Real World Application

When people ask what real world application cryptocurrency solves, we see the focus in the wrong area. Instead, we should concentrate upon the underlying technology, blockchain.

This single innovation has the ability to disrupt trillions of dollars worth of existing business. When looking at a disruptive force, this could be more powerful than the Internet, by orders of magnitude.

Sometimes the greatest advancements come from a simple idea.

One thing that is repeatedly overlooked with blockchain is the ability to send money anywhere in the world without the use of an intermediary. This can revolutionize the international payment system.

Of course, we saw instances where the options on blockchain were worse than the banking system, at least from the fee perspective. When transaction fees are near $100, that makes the banking system look like a bargain. This is a major shortcoming of some chains and will really hold them back, at least in this regard.

One chain that doesn't have this issue is Hive. We are sitting on a blockchain which has no direct transaction fees. Due to the Resource Credit system, anyone can send a transaction for zero cost. Yes, that person needs some $HIVE staked but that is all. After that, one can send money to as many places as desired.

While this might not seem like much, we are now entering a multi-trillion dollar industry.

How big is it?

crossborderpayments.png

That is a large chunk of change. We are looking, by the middle of this decade, near $40 trillion in cross-border payments. Can you imagine how much that generates in fees considering the costs for providers such as Western Union, Moneygram and the entire banking industry?

Blockchain can handle that easily.

There is a major advancement to those entities that service this market. When using cryptocurrency, the need to pre-fund accounts in different countries is eliminated. In fact, there is no need to fund anything. The blockchain handles all settlements.

In fact, this is being recognized by the industry:

New, emerging trends in payment technologies, such as Blockchain and Distributed Ledger Technology (DLT) can improve the transaction cost and transfer time, and generate real-time data focused on key aspects (e.g., customer behavior). DLT can solve cross-border transaction and settlement problems by verifying the origin and authenticity of a product as it moves across the value chain.

Source

Notice how we were discussing Distributed Ledger Technology (DLT) of late?

Can anyone see where this is going?

Hive Offers The Best Solution

Hive is already far ahead of everyone else in this area. However, it is about to expand upon its lead. We are getting something called One Block Irreversibility in the next hard fork.

This is going to take an already rapid system and make if even faster.

Let us step back for a second and look at this market.

What we have is an expensive way to send money internationally, having to use intermediaries to facilitate the transactions. Not only is this costly to the user, the companies have to pre-fund accounts in each country. At the same time, the process is slow, often taking hours to complete.

Now, with that backdrop, let us look at what Hive is doing.

For those unaware of OBI, here is an article One-Block Irreversibility for Delegated Proof-Of-Stake (DPOS) that explains it completely.

At present, the system is very quick compared to the traditional money transfer system.

Since the current irreversibility algorithm requires 15 blocks to be built off a block before that block becomes irreversible, the fastest time a block can become irreversible in Hive now is 45 seconds (15 blocks * 3 seconds /block).

We are looking at 45 seconds for a block to be irreversible; in other words for the transaction to be fully settled.

But wait, it gets better.

In a normally well-connected Hive p2p network, this should result in most blocks becoming irreversible on a node within a second or less after they are produced. The exact time required depends on the message latency between nodes and number of network hops between the node and the block producers. -(Emphasis mine)

So now we are looking at a system that makes blocks irreversible in roughly a second. If we combine that with the 3 second transfer (block production) time, we are looking at a total of 4 seconds.

Think about that compared to any other system out there. We know Ethereum and Bitcoin can take hours to settle. Plus their fees are high. Of course, the traditional system is even worse. Even the EVMs can be much slower and have fees.

Therefore, after the next hard fork, Hive will be a 4 second settlement network with zero transaction costs.

Keep in mind, this is the basis of an industry that is expected to move around $40 trillion dollars in the next few years.

Is that an opportunity for the Hive blockchain?

Let us know in the comment section below.


If you found this article informative, please give an upvote and rehive.

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Blockchain technology is still very much underated yet the things is can do are countles. This is an amazing space to watch, with that said the bears are a great time to learn and know the fundamentals of the crypotsphere

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And something to highlight is that although RCs require HIVE, the end user can resell that HIVE later (for profit or loss), so it isn’t like they lose their initial investment altogether.

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Hive settling transactions in 4 seconds will be an improvement and capable of handling its share of blockchain transactions with zero cost which is the sweet part.

How many transactions can Hive perform per seconds against VISA's 24000 per seconds?

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Hive is so so underrated right now. There are so many advantages attached to the block chain and the zero transaction fee alone makes it top tier coupled with sustainability.

As for me, the Hive blockchain is my new home amd I'm not going anywhere soon.

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It the advent of hive-engine side chain, scalability is highly needed as confirmation use to be 3 seconds but now it’s been pushed to 45 seconds and more users are on boarded too the blockchain and the block size has also increased.

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Can you imagine how much that generates in fees considering the costs for providers such as Western Union, Moneygram and the entire banking industry?

Makes me think of that saying "how do you make money in Vegas"... "own a casino". The good thing is with blockchain and cryptocurrency we actually become the owners, something that would have been very unlikely in the legacy system.

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I'll say it's a very big opportunity for Hive especially if you put the Unbanked into the picture. This third party payment remittances are slow and take a large fee from every transaction.

There are lot of individuals and businesses that send cross border payments every week. It will be a huge blessing for them if they knew they could send money instantly with zero fees to anywhere as long as both of them have operational Hive accounts.

When it comes to cross border transactions and payments Hive is definitely the leader.

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Right now what most have predicted is happening, we are entering a recovery stage and we could have left the Crypto Winter behind. What is known in Biology as "Natural Selection" has occurred, since the best adapted to technology will be the ones who achieve good results and when those who have left try to return it could be too late

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i been around dpos now for over 5 years. My second day coming into contact with dpos i said this can work as a global remittance payment system. Bitcoin MYK figured it out and it pursued that course.

Hive still hasn't figure it out. It's confused about being ethereum.. it wants to be tron or something.. then it tries to be bitcoin and everything. it's a complete mess. Now the problem is because it's taken you all like 6 years to figure this out. Now you got all these ethereum forks that are low fee with a ton of liquidity and stable coins .. eth 2.0 almost here and it will have i'm assuming very low fees for this.

Now you've squandered your window of opportunity when the light could have shown on you all and these other projects had nothing to compare. Now they got everything to be a competitor in a small pool of money. This is why i have so much issue with you all. Then when i years and years ago wrote posts about this and had the mechanism you all could get behind.. you went nah we don't wanna do that. We wanna be a gaming chain .. we can be all these jacks of all these products and masters of none.

Even now you all still don't get it.. Your post is late.. way too late. So if i wanna do settlements and global remittance i want most of the crypto space or the entire globe connected to my network. What sets me apart from the rest. Well in our case it's the citizens dividend. I want all those poor western union people who need to send money and most of their money is lost to the transaction of the money to have bitcoin myk accounts that pay them the citizens dividend like a rebate for using it.. or you can say a dividend whatever.. or however people would like to think of it.. the bottomline it's just more advantageous for everyone to use use. we need those payment gateways and everyone to want to hold them. we don't need the guy who only interested in a 20% return on hbd. thats like one guy of a billion. that's not what a western union transferee or receivee or paypal or cash app person is concerned with. that's what a small group of investors are concerned with.. The seling pressure keeps the product stable we don't want your money to be worth less or more when it gets there.

anyway i've found it's two groups of people that are the worse to speak to. One is a drunk the other is a hive community member. They are in similar company.

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ok, you know me. love the idea of using Hive as settlement platform, but how do we incentivize it and how do we promote it as such.

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It is vital to know what Hive can do. The timing is impeccable knowing sometimes getting things done is the first.
Secondly we need to find ways to let the world knows the actual capacity of this blockchain.
Sooner or later it has to reach the investors.

!BEER

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