One Block Irreversibility In Next Hard Fork: Hive In The Lead

There is some amazing stuff taking place that often gets overlooked.

Most are aware there is another Hard Fork (#26) coming up in a little over a month. Like most, this includes a great deal of changes to operations at that base layer that will enhance the functionality of Hive.

For the majority of us, a lot of this is just techie mumbo jumbo that doesn't mean a lot. While this is the case, it is important to highlight the knowledge of the core development team along with what they are putting together.

When it comes to technical capabilities, there are not too many chains that will outshine Hive.

This is vital when building a foundation. Obviously, anything that is constructed on top of Hive is enhanced the more robust and powerful the base layer.

In this article we will discuss one of the additions and, more importantly, what it means.

image.png

One Block Irreversibility

Here we have a prime example where the technical stuff can override the use case in the minds of many. Nevertheless, we are seeing something very important developing.

In the most recent post, Blocktrades gave this updated:

Further optimization of OBI (one-block irreversibility) protocol

The optimizations to the OBI protocol are mostly done, but the dev for this work is currently tied up with another Hive-related coding task, so it still needs to be fully tested.

We can only presume this means it is basically ready for inclusion in the fork, once some testing is done.

So what does this really mean?

Here is a full explanation of what One Block Irreversibility.

For a quick overview, it is basically condensing the time that is required to make a block irreversible. That occurs when 75% (15 or 16) of the block producers produce blocks. Since Hive has 3 second block times, this means it is a 45 second lapse before a block reaches this state.

This, of course, is much better than chains like Bitcoin and Ethereum. Yet, it is about to get a lot 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)

Essentially we are looking at blocks becoming irreversible within a few hundred nanoseconds of being produced. Again, to contrast, since Bitcoin's time is so long, people are working on a layer 2 solution (Lightning) to be competitive.

With Hive, this is all base layer. It is also moving it to the top of the list.

As far as I’m aware, the One-block Irreversibility protocol will put Hive at the forefront in terms of transaction confirmation time.

Financial Settlements

Over the last 6 months or so, we delved into the plumbing of the financial system. While many notice the front end activities, such as swiping a credit card, they really do not consider what happens on the back end.

With this move, Hive is truly inserting itself at the "plumbing" level.

Before getting into that, let us highlight what was said about the front end:

Hive already had one of the fastest average blockchain confirmation times at 45 seconds, so you may be wondering while I think it’s so important to speed it up further. The biggest benefit comes for 2nd layer apps:

First, 2nd layer apps can now be more interactive with their users, since they have faster guarantees of irreversibility.

This is rather obvious. Who wants to stand at a counter waiting 45 seconds for a transactions to confirm? This is why the credit card networks are so powerful. They approve the transactions in a few seconds.

Naturally, for now, Hive's payment system ($HIVE and $HBD), is mostly web based. While waiting 45 seconds for one's subscription to renew is not the end of the world, it might be when it comes to gaming. If one is looking to buy a weapon, the benefit of block irreversibility under a second is obvious.

Things get really interesting when we start to dig deeper into this.

Let us use the example of a check. In the banking system, there are two layers to deal with. Here we will presume one is writing a check for $50K for an automobile.

The process looks something like this:

  • Buyer writes out check
  • Dealership deposits check
  • $50K removed from buyer's account
  • $50K deposited in dealership's account

This is a process most of us can envision. The problem is how long does this take? If we are dealing with checks from outside the area, the money might not be available for days. Why is this?

It all comes down to settlement. The banking system can take anywhere from a couple days to a week to fully settle the transaction.

We have another layer to consider. Since the banks all have reserve requirements, another settlement is required between the banks to adjust their reserve levels.

All of this is due to friction in the system.

Hive As One Of The Leading Settlement Systems

One of the key aspects to our monetary system is communications. In this era, that means computer networks. Blockchain epitomizes this. It is also one of the reasons why, when the US wants to sanction a country, one of the first things they threaten is to kick them off the SWIFT network. Why would they do this since that is nothing more than a messaging service? The answer is because communications is vital to money.

Having Hive as one of the fastest settlement systems is a real bonus. Consider the fact that trillions of dollars is moved around the world daily. All of banking (along with the associated networks that were built) are designed to simply arrive at consensus. Effectively, we have global ledgers run by a few different outfits that tell us who holds what and where it came from.

We are now looking at blockchains opening that up to a lot more players. Instead of a few major banks controlling the ledger, it is permissionless and immutable. We also see how it is decentralized.

It is rather obvious how this blockchain will lap the banking system. When you take settlement times from a few days to under a second, that is a massive increase in efficiency. Consider the global impact of having money available in a fraction of a second.

We also have to acknowledge how this stands out compared to other chains.

Look at something like high frequency trading. To disrupt this, would something like Bitcoin work? Obviously not. The idea behind NFT is to have computers operating milliseconds ahead of others. This means having a settlement system that is under a second is imperative. At present, it uses the same old banking system, settling at day's end.

Perhaps a more relevant example is paying for a rental car. Do you want to stand at the counter for an hour while the Bitcoin transactions is confirmed? The answer is no. This is why people are looking at joining Bitcoin with Visa cards. Here we have the Visa network being used for its confirmation time. The Bitcoin settlement takes place on the back end.

For this service, Visa takes a cut.

With Hive and OBI, this is all eliminated. Within a few seconds from hitting send, the transaction will be fully completed.

All of this positions Hive for core level money transmittal. With swaps, it is easy to see how one could flip into $HBD, use Hive to send it, then swap back to the other token (or whatever) on the other end.

Of course, since HBD is a stablecoin, there might not be a need to swap it on the other end.

The possibilities really open up with the addition of One Block Irreversibility. One of the keys is this is global system which, overall, trails those within developed countries.

Hive is about to offer the potential to upgrade the entire global settlement system to a level not see before.

It is rather impressive when you think about it.

One final point: We discussed speed of settlement but omitted the cost. The fact there are no direct fees on Hive also cannot be matched.

What advantage does that provide to the global financial system?


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

gif by @doze

screen_vision2025_1.png

logo by @st8z

Posted Using LeoFinance Beta



0
0
0.000
37 comments
avatar

pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 109 of my contest just started...you can now check the winners of the previous week!
!BEER
7

0
0
0.000
avatar

#Hive with the introduction of changes to improve all existing functions simply certify what many of us already know and that is that the more innovations to the blockchain, the greater adoption in the near future

0
0
0.000
avatar

The innovations certainly are coming. It is easy to overlook some of what is taking place. However, a lot of important stuff is being developed.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It's interesting to see where things are going and hive "block " have been put in a spotlight due to the upcoming forking and how to scale hive. It remains important that the witnesses keep doing their best to put Hive as a contender, solidifying it's ground so that when its time comes, Hive doesn't blow into the wind.

Posted using LeoFinance Mobile

0
0
0.000
avatar

Well the witnesses are important but this belongs to the core development team. They are the ones bringing the code to the witnesses.

The key message is correct. We just need to keep pushing things forward.

Posted Using LeoFinance Beta

0
0
0.000
avatar

thanks for making this clearer! Exciting :)

0
0
0.000
avatar

If we are dealing with checks from outside the area, the money might not be available for days. Why is this?

Usually checks that big they put a three day hold on when you are depositing it to so they can verify the funds are there...

That adds even more time to the transaction actually processing.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I imagine it is even longer if the check is written on an international account.

With Hive it settles in under a minute and with the OBI, under a second.

That is a big difference.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Making Hive faster than it currently is raising the bar, this way Hive is positioning itself as one of the fastest transactions chains out there, all this will play out in Hive's favor over time.
We keep building and upgrading, I like the culture around here.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It really isnt speeding up the transactions as much as the irreversibility of the blocks. This means that a transaction is settled in less than a second.

That is unheard of in the financial world.

Posted Using LeoFinance Beta

0
0
0.000
avatar

What's the downside, if any, to one block irreversibility?

0
0
0.000
avatar

According to what Blocktrades wrote up, it doesnt appears there is any. It is just a matter of getting it coded.

There is still manual reversibility just no automatic.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Sound great, hopefully it will lead to more use of Hive.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It could really make it attractive to those who are concerned about settlement times.

Of course, the fact that Hive is under the radar means that few will know.

But that is something we can start building upon.

Posted Using LeoFinance Beta

0
0
0.000
avatar

This is really impressive! Once the upgrade is made, Hive blockchain will be able to outperform this centralized organistions in transaction speed with also no direct fees?

Posted Using LeoFinance Beta

0
0
0.000
avatar

It isnt so much as transaction speed as settlement time.

Visa has a very fast network but merchants do not get paid for 24-48 hours.

Even then, the transaction can be reversed up to 30 days.

With Hive, once it goes through, it will be settled. It is on par with cash which settles as soon as you hand over the money.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I like how you explain complex things simply and for someone like me it really helps. Value being added all the time which has to pay off at some point down the road.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It is a massive benefit for merchants, vendors, and people selling stuff. This is especially true for things that are time sensitive such as buying things in games.

Posted Using LeoFinance Beta

0
0
0.000
avatar

From where these 45sec confirmation time comes? If I send over some Hive to another user, he has them in 10 sec. max. in his wallet.

0
0
0.000
avatar

A block is not irreversible under the present coding for 45 seconds. 15 witnesses have to approve it and they do it by liking the block they produce with it. Thus it is 3 x 15 = 45 seconds.

The tokens show up in the wallet but it is technically a reversible situation.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Full confirmation is 60 seconds.

But removing funds would need witnesses involved, so there should be not a big difference between 3 seconds and 45(60) seconds.

0
0
0.000
avatar

The OBI is an important concept for DPOS-based blockchains such as Hive. This new mechanism allows for block producers to reach consensus on the validity of a block much faster than the existing mechanism.

0
0
0.000
avatar

From 45 to just 1 second or under, this is huge but most probably it will pass unnoticed by most hive users, but it is something necessary to happen for Hive to evolve, especially for the gaming side, and for the speed of financial transactions, of course.

I really enjoy your written articles, for someone like me who is not an English native when watching/listening to your clips, many things can get overlooked but when reading I get a much better perspective of the things you try to say and explain.

0
0
0.000
avatar

I think the speed is one thing Hive has that most other chains don't. In my view, the 45 second delay wasn't really something I noticed as most people would just assume the lag before it gets read.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Kudos to the devs behind all these amazing upgrades behind the scenes. It's great to see Hive leading to the best that it can be. Thank you for bringing this to our attention.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I just can't wrap my head around why we call it hard forks?
Nothing is being forked, its just a regular update. Forking is when two different path start from the same origin: like BTC and BCH.

A new hive version is just a new version and another which dies within seconds.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I assume it’s Because those running nodes must comply and if some don’t they will fork.

0
0
0.000
avatar
(Edited)

Between what Brian is working on and this, Hive is making moves 🙌

Only negative I’d say is calling HBD a stable coin and used for purpose u describe “ Of course, since HBD is a stablecoin, there might not be a need to swap it on the other end.“ we’ll even though it rises back close or at $1.00 at some point weekly it moves massively like 10% moves in a day. I still think labeling HBD as good for stable coin use is not a good idea. It moves from $0.99 cents to .91 cents often. Yes as of now it goes back but it could cause issues if people use for a single in and out transaction and it goes from .99 to .95 in just an hour or so which happens weekly often.

Hive itself I’ve never been more positive about. I’m especially excited about the work @brianoflondon is doing and latest with @podping

We are in a good place overall and the future is bright for Hive. I just wish people would see the problem with these daily 5% plus moves in HBD. It’s not acting as a stable coin and shouldn’t be promoted as one that is used as a “Stablecoin”
But everything else I’m with ya @taskmaster4450 👍

Cheers to you & to Hive and it’s future 🍻
It’s pretty amazing where this is going!

0
0
0.000