Why User & Development Activity on Hive is Thriving as Other Blockchains are Declining

in LeoFinance5 months ago

Why User & Development Activity on Hive is Thriving as Other Blockchains are Declining.png

As I'm writing this on June 14th, 2020 one of the top news headlines for crypto is "Developer Activity Surrounding Eos, Tron, and Bitcoin Cash Plummets".

The talk of the town is a discussion on why these supposedly "top blockchains" with billions of dollars in market cap are seeing their developers (and users) drop like flies.

Monthly Active Development by Outlier Ventures

This chart shows the decline in monthly active development on Tron, Eos, and Bitcoin Cash. We've seen many blockchains in the space decline similarly in terms of core and third-party development over the past two years. Many are popular protocols, applications, blockchains and even top market cap cryptocurrencies.

These projects have millions and even billions of $$ in the bank, wouldn't you expect them to be able to drum up some paid actors to use their applications.. at the least?

Why Are These Projects Seeing Such a Rapid Decline in Their Developments and General User Base?

As many in the crypto media and crypto analyst fields are doing, I'm racking my brain for ideas as to why these projects can't drum up any sort of meaningful activity. The reason that I keep coming back to is something that @theycallmedan often tweets about:

You can't buy a community.

I've seen other large crypto twitter influencers utter a similar sentiment (some even referencing the Steem->Hive Situation).

The main reason why these projects are failing to develop great tools and cultivate a growing user base is because they fail to understand people.

While they sit in their ivory towers with millions and even billions of dollars in their bank accounts (or private keys), they are unable to understand the very core competency that nearly every blockchain platform needs to have: the ability to build a strong layer 0.

If you're a user, developer or investor on the Hive blockchain, then you understand this point well. You already know what a strong community looks like. While Hive is far from the biggest blockchain out there in terms of market cap/"money in the bank", it is one of the largest blockchains out there in terms of developer and user activity... and that my friends, is a fact.

Using Activity on Steem vs Hive to Illustrate this Point

ICYMI: There was an amazing analysis published by the team over at DappRadar in which they illustrated a "flippening" in the dapp activity on the Steem blockchain as compared to the Hive blockchain.

The author, Jon Jordan, kicks off the article talking about the "Steemit strategic partnership with Tron" that was announced on the 14th of February 2020.

This announcement along with the subsequent hostile actions of Justin Sun toward the existing layer 0 (community) on Steem is what led many leaders in the community to create a hard fork called Hive.

Hive was created by the community and for the community. Since the point of this post is to discuss the primary reason why these other blockchains are failing, we needn't look any further than a community of users, developers and investors who came together to create an entirely new chain that embodies the principles of decentralization and community-ownership.

DappRadar Analysis

This chart illustrates a very interesting relationship between Steem and Hive. Splinterlands is obviously the most used dApp on Hive (and is one of the most used dApps in all of crypto, for that matter) and was truly the only thing that kept Steem looking "alive".

Splinterlands migrated from Steem to Hive on June 1st (just a few weeks ago) and on the day of the switch, you can see a complete flip in the dApp user activity on Steem and Hive.

Note the trend line: Hive has steadily seen growth since it's launch back in March in terms of dApp user activity while Steem has seen a steady decline. Users on Steem have been migrating to Hive alongside their favorite applications.

The central point that I'm trying to put forward here is that a community existed on Steem. Not just any community, but arguably one of the strongest dApp platform-oriented communities in all of crypto. When any threat was posed to that community, it rallied together to protect the collective interest.

When you look at these other blockchains - be it EOS, TRON or BCH - you won't find this same quality. You won't find a core community that will do anything to see the platform succeed.

You won't find a core group of developers, witnesses, users, content creators and investors willing to build the project out of passion and not profit.

This is why these platforms are slowly dying. They are propped up by large cash reserves and a few prominent figureheads who are capable of marketing their developments to raise more funding and token valuation in the short-term.

The problem here is that one day the bill comes due. One day, everyone is going to stand up in crypto we're going to look around and see that many of these projects are nothing but a shell of development, hype and a lack of real-world usage.

Dan also sums this up well in his tweet: "The days of a small group getting rich off the back of the community are going away. The future is ours".

The reason why Hive fits so perfectly in this conversation is because it is a small platform. It's the David in the story and these other projects (not dissimilar to the corporations/govs outside of crypto) are the Goliaths.. biding their time and maximizing self-enrichment until the day they fade to dust.. and that day is coming.

As people continue to find the best places to build projects in the crypto space, I think many more will realize that Hive is one of the most viable options. There is an existing community and while it is small relative to the outside world, it is huge in the world of crypto.

Some who read this may call me a Hive maximalist. While I obviously have a major biased toward Hive - having built the LeoFinance project and all the various applications we've created on top of Hive - I am actually a community maximalist.

In the process of writing this and thinking about the value of community, I've realized that the primary reason why I invest in a stock or a crypto project hinges largely on the community that underpins it.

A few of my largest bags:

  • Bitcoin - the OG group of hodlers
  • HIVE - the community to build and be a part of
  • Ethereum - a community of talented, forward-thinking developers
  • BAT - a project led by community-oriented leaders centered around the idea of revolutionizing digital advertising to the benefit of users
  • Tesla - another die hard community outside of crypto
  • Square - a community has been forming around Square at an exponential pace. The ability for people of my generation to buy fractional stocks, Bitcoin and spend it/send it easily is going to revolutionize finance. It's a bridge between traditional finance and crypto

With Hive and these other investments, I've come to realize that everything comes down to community. Your true value ought to be measured by the core community that underpins all that you do. So to throw my hat into the ring on this discussion as to why projects like EOS, TRON and BCH are lacking growth, here's why:

Community. Community. Community. Oh and community.

 
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I was at one time excited about EOS. I thought it had potential. It probably does. However, as you state, EOS lacks community. There are people trying to build things on it; but, they aren't drawing people in the way that Hive is. Perhaps this is the reason why they are trying to get Voice going. There needs to be a flagship product or community that will then drive developers to create products to cater to that crowd of users.

Personally, for me Hive allows me to do what I would naturally do on my own. With other projects, I would have to figure out what to do with them. I can buy ETH and hold it or spend it. But, otherwise, there isn't a compelling service out there that makes me want to maximize my ETH holdings the way Hive does. Having said that, I have to wonder why I've invested so much in other cryptos. Time to reflect.

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Yeah I spent some time researching EOS in the past, but honestly I was never impressed enough by my research to warrant buying any significant stake in the project.

I wrote a post a few days ago talking about how I used to invest in 20+ cryptos just before the altcoin bubble hit in 2017. Since then, I've dwindled my holdings (in crypto) down to just HIVE, BTC, ETH and BAT.

I've become very harsh in how I evaluate these projects and I think there is a good reason behind doing that. In my opinion, many of these other projects out there like EOS and TRON put up a good front and basically trick people into investing rather than provide a tangible product delivery that makes sense.

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I totally agree on the point about having and building a community vs just money projects.

Witnessing the growth of communities on HIve really gives you some understanding about these things.

This:

While they sit in their ivory towers with millions and even billions of dollars in their bank accounts (or private keys), they are unable to understand the very core competency that nearly every blockchain platform needs to have: the ability to build a strong layer 0.

@tipu curate

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I think it's a combination of actual use case with projects that aren't in beta forever, combined with a community of passionate users.

I mean, EOS and all these have all the hype in the world, but the working product is...Well...Is there one?

HIVE might not have the market cap of these but wow, does it ever make up for that in users and passion!

Good read.

You limit your view toward millions of things you don't know.

Creating community, maintaining it and making that community a win win situation for all is the way forward in any domain

It's great how passionate and eager the community we have is. The amount of development since the split is amazing and that's after leaving some people behind. Hopefully we see them join somewhere along the way.
While steemit was always a basic site it gave people a centre to work around and organize projects. It gave people a chance to connect and form that strong community that we have today.
Development is continuing with great projects like yours and marketing is stronger than before. Steady growth wins every time. As long as we keep adding people will take notice.

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You can have a great idea and plan, it will not be real thing until it's available. People are excited about what would happen and at the same, if we do not have something that we can use and are comfortable with, it will decline. Yes, it's about community. That's one of the most powerful layers that make the difference.

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