Hive: Mini-Ethereum?

in LeoFinance3 months ago

Ethereum is on fire. There is no denying that fact. The second largest cryptocurrency, by marketcap is at a new all time high. Many are projecting we see the price cross $2,000 in a short period of time. On a bit longer horizon, $4,000 and $5,000 price targets were put out there.

We will see how the markets handle all of this. What we do know is that DeFi is still raging on Ethereum. Each day there is more activity and the amount of money involved grows. Of course, the run in the token price aids in this effort.

However, not a single day goes by that I do not see multiple messages about the transaction fees on that blockchain. Whether it is in the comments on Hive, Discord, or Twitter, someone always has a story about trying to do something and the fees get in the way.

@disregardfiat has the perfect summation of DeFi on Ethereum: It is WhaleFi.


Source

This makes sense since the fees hinder most activity, at least on a small scale. After all, if the fees are near $50, one would want to keep it at around 1%. This means that transactions of $5,000 or greater is the ideal.

Of course, not many are going to play in that area.

There is another issue with a blockchain having such high fees: suddenly, the banks look better. After all, most will charge $35 for a wire. Of course, the settlement time is still awful yet cryptocurrency was suppose to correct the problems the banking industry presented. Having a more expensive system does not provide much optimism for the future.

A final challenge is that even though Ethereum is switching to PoS, from what I understand, the fees situation will not be resolved for another couple of years. This means that if the blockchain gets more activity, which is should, the fees will only go up more.

Hive: Mini-Ethereum

There are a number of projects on Hive that are working on providing smart contract capability to the platform. This is one thing that has separated Hive from participating in the DeFi game to a great degree. Without smart contracts, we are limited to what can be done on (and off) chain. Focusing upon Layer 2, this solutions will be easy to implement since they do not require a hard fork to enact. Also, all upgrades can occur frequently, improving the offerings, for the same reason.

Hive solves the biggest drawback to Ethereum: the fees. With Hive's fee-less system, people can operate without worry about the transaction costs surpassing the value of the transaction itself. How often do we read about someone screwing up and making a transaction that cost a hundred thousand dollars?

That is impossible on Hive.

Since Hive uses the Resource Credit system, an account will simply need enough HIVE to operate. Considering the recent costs on Ethereum, one transaction would buy enough HIVE to allow one to likely transact for the rest of his or her life.

With the price around $.15 for HIVE, $50 would mean that someone could have around 75 HP. That is enough for all but the most active of users. At these levels, $100 would virtually guarantee transaction-free trading for life.

Merging Social Media And Finance

Hive is expanding its offering in the decentralized social media world. For years, it was a blogging platform. Soon, we are going to see a decentralized twitter like service along with video storage that is not tied to any central servers.

With the number of users who are being displaced on Big Tech social media due to their views on certain topics, the market for this is only growing. The spat that WallStreetBets had certainly is shining light on a problem that is outside social media.

Here we see another opportunity for Hive. The view from years ago of using social media as an onboarding to further offerings is starting to take shape. A new application like what Leofinance is going to release can bring tens of thousands of users to Hive in a short period of time. This means that people will suddenly be involved in crypto, even if they do not realize it.

At the same time, the situation with Reddit over WallStreetBets shows there are rather large groups who might want to have the freedom (and security) that a Hive offers. This group is obviously an ideal candidate, not only for a community, but also to partake in whatever DeFi services are ultimately offered here.

The great thing about Hive is that, instead of WhaleFi, it can be MinnowFi. Anyone can participate in whatever amounts he or she has available. That is going to be vital as more people join crypto and start getting rewarded in different tokens. Compounding tells us that people often have to start small before growing their accounts over time. This is difficult to do on Ethereum unless you have a significant pile of money already on hand.

According to Blocktivity, Ethereum did about 1.3 million transactions in the past 24 hours. With Hive doing a little over 900K, that means this blockchain could easily do the transaction volume that Ethereum is without breaking a sweat. The best part is that it could do it for a fraction of the cost.

Ultimately, the goal of new technology is to drive costs down, not up. Hive accomplishes this goal, at least compared to what it costs to run Ethereum.

This could put it in ideal position to attract a lot of the smaller players on that blockchain. Uniswap is reported to have over 1 million users. How many of those people are presently forced to sit out due to the recent fees?

They could find a nice home on Hive.


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No man koinos is a scam
We have our own shit we dont need turncoats like @andrarchy fuuck him bro

We have real developers and andrarchy ignores our projects and promotes his own when he could have helped hive engine and dapplr and appics and @hellotelos

Look telos can have hive FORKED IN And we can have all hive engine tokens on metamask using telos virtual machine vroooo u all are loke chilrren im so kuch smarter than all of you hive users and yet i am goibg to deliver you to salvation and $100 hive by using pnetworkdefi node for $30,000 so we can have PHIVE on bitfinex as an erc20 and on uniswap

Screenshot_20210203-112001_Telegram.jpg

Go to ptokens.io telegram DEMAND they cover the node cost and GIVE us PHIVE for free ! They know @dan is here and they WORK for block ones people so THEY KNOW ....but like Enlil and Enki Dan must stay hands off and just let us develop hive into an eosio erc20 hybrid

We can have a block producer on eos and telos voted in by hive users... we can basically take our best hive witnesses and have them run a BP on telos and eos hahaha

We can do better than any current WRAPPED hive made and cutsidianed by some anonymous liability

We will have the node run by the hive witnesses so they are repsonsible for the gateway that allows PHIVE to be issued by burning hive snd hive to be redeemed by burning PHIVE ... check Githube ProvableThings. Search for that term u will find it https://ptokens.io

yes here it will come, it is a great form to get mining pool from minnow.

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Once the realize the crazy fast, fee-less transactions, Hive will explode!

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With the price around $.15 for HIVE, $50 would mean that someone could have around 75 HP. That is enough for all but the most active of users. At these levels, $100 would virtually guarantee transaction-free trading for life.

And the best part is one need not invest everything..they can earn from various ways and can reach 100-150 HP easily .

Also I think you got the numbers wrong :p . 50$ will give us around 340 HP . So actually 25$ is enough for posting and transacting at hyper active level.

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I have never liked ethereum because of its the high transaction fee. Maybe hive spoilt me with feeless transactions, but having to pay so much to transact is a big turn off and I might say that ethereum is missing out on micro players who are as important as whales because cumulatively they bring a lot of volumes, hive is an example of how this plays out. So I wonder how we are not a top 10 coin. My guess: people aren't getting into crypto for the right reasons yet.

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Yep; but they don't care about the micro players and the big end of town does not care about the fees (they are used to fees)

The 99% can move their money and engagement elsewhere. Nothing is static. At some point, people would want to use blockchain technology for something other than making quick gains. When that happens the tide will change. I believe.

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Agree; but its a question of uptake and users for any decentralized system to get critical mass. But hive is getting closer to what I consider a critical usability level where the apps are easy to use and add value to peoples lives. Uses will only come on mass when its easier and more functional than what they are used to (to most decencasliation is a bonus not a necessity).

Following the same path as the Internet. Mass adoption came long after it left the "geeky" stage.

Ease of use was something missing in crypto. It is starting to move in the direction where the average person can join.

Hive is making strides, something that will help it stand out in my opinion.

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Keep in mind, as the price of ETH keeps rising, so does the cost of transactions in USD terms.

If the price does hit $4K or $5K like many expect, that could really send them skyrocketing.

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Yep; I guess they have their hopes in ETH 2.0

They do but from what I understand, it will be two years before the fees are addressed.

That seems like they are overlooking the elephant in the room to me.

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The fees will be a problem when the masses start to come on board. Think about the different applications and what crypto is used for. How can that operate with high fees? Gaming for example, will get devastated on there.

Smart contracts that are decentralized is vital to the future success of Hive. That will really open another door that we do not have right now.

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If we fork hive into telos we can have ethereum metamask experience for Hive with 0 fees using ethereum virtual machine

![Screenshot_20210203-112001_Telegram.jpg](UPLOAD FAILED)

Hive is so much more accessible to those of us starting out from zero. And the fact that we can earn the tokens by being active on Hive and re-invest them is just one of the attractive aspects for me.

The reward system is a gold mine for users. It is a great way to get people involved who have no money to invest. That is the challenge with Bitcoin and Ethereum.

For that reason, we should be able to leverage the possibilities on here to great heights. Opening up the door to a lot of people is really what it is about.

This will appeal to the large numbers in the less developed countries since the impact can be felt there first.

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Yes, @taskmaster4450le! I truly believe that this will be the rising tide to lift all the boats.
!ENGAGE 20



Made in Canva

@lisamgentile1961
___

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

According to Blocktivity, Ethereum did about 1.3 million transactions in the past 24 hours. With Hive doing a little over 900K, that means this blockchain could easily do the transaction volume that Ethereum is without breaking a sweat. The best part is that it could do it for a fraction of the cost.

Hello, I think it's difficult to compare the transactions done in Ethereum including smart contracts, with the transactions executed in HIVE. But I'm a complete newbie in this kind of knowledge.

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The gas fees on ETH is crazy. I personally like the model HIVE is build on. RCs recover over time and if someone does not want to wait, they only have to power up some HIVE. I do think that it is ridiculous that ETH now cost more in fees compared to a wire transfer.

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And it will only increase, in USD terms, as the price of ETH goes up.

That is something that few are not taking notice of. If ETH does hit $4K, think of what the fees would be.

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Agree the potential here is so huge. I just picked up another 60k hive , hoping this breakout is the start of something big.

The pricing action will do what it does. The development is more important at this point. I believe you made a good buy simply because there is more that is rolling out in the next couple months on Hive.

For this reason alone we see the opportunity for some rapid growth, something that was missing for a long time around here.

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I know this is probably a much longer conversation, but can you explain to me what the main goal is for DeFi? I mean what do most people use it for? Are they putting up collateral so they can borrow larger sums of a cryptocurrency and then try to take advantage of arbitrage opportunities or buy the dips and sell the highs to come out ahead? I am still trying to wrap my head around all of it. I certainly have a bigger stake on Hive than I do on ETH, so being able to finally take part in some of this DeFi stuff would be a cool thing.

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DeFi is in its infancy. It obviously stands for Decentralized Finance. Thus far, it mostly is used for yield farming.

However, the terms applies to all aspects of finance. A DEX is DeFi since it provides financial services in a decentralized manner. Then, leasing of HP on Hive is also DeFi. The fact that each account is paid "inflation" for all HP is DeFi.

Eventually, you will likely see much of the financial system's offerings done on DeFi. We could see collateralized loans, mortgages, and a host of other services done through smart contracts.

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Alright thanks! Looks like I need to go Google yield farming now :)

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It feels unfair that we're hive is feeless, maybe the use of resource credit is the only fee to actually use the chain itself. As for me ethereum is progressively doing well despite its high fees, it feels as if people would rather prefer a feeless chain in hive. But there's something I have realised. High fees or no fees, people will still use a chain they deem good.
People could find that home in hive like you said, it feels rather frustrating that they haven't.

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As the price of ETH goes up, so does the fees when priced in USD.

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Well I guess this will become something we have to get used to.

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at this moment, ETH is basically a store of value since I can't really do much with it either than hold it in a wallet.

even moving eth to exchange is also a pain because of the fees

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That is true. Except for the biggest players, it is hard to do anything on that blockchain. Have to hold until it gets much larger in value.

This situation will only get worse as the numbers keep increasing.

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I'm really glad that the price of ETH is mooning, however at the back of my mind... "oh no, here comes the ridiculous fees again"

that's something that small crypto investors can't put their head around

eventually, people will realize Hive is a better option because of the almost free tx fees, they just have to be educated about it

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Hive is lurking, it seems that nobody monitors Blocktivity's movements, but there it is more than clear, where the old chain is steem, apparently it has completely disappeared there is no trace.
Well, many of us would like to enter ETH unis suchis kimchis and all those swap meals but it is not possible due to the high costs nor am I going to get in to spend the only US $ 50.00 that I have earned with a lot of sweat and effort so no, hopefully our developers have something well in mind that it helps us normal users in the follow-up of the path towards the great advances that we see are being carried out in the defi world, but we are going well we are on the right track, with hiveengine on the lookout and dex they are also seen as tools very good that will allow us, among others, to advance on this path that for now we are missing many small fish but that will come and hopefully we will be there to take advantage of it.

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where the old chain is steem, apparently it has completely disappeared there is no trace.

Blocktivity was clever there. Notice how it says Decentralized on the top of the page.

They dumped Steem because it is centralized I belive.

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Fantastic imagine that if that's why I kept thinking about where it is, it was simple curiosity, but if they surely conisde it so centralized that they don't want to put it but hey that's history,
Let's hope the new era of defi to come in hive, as well as the new ones from possible twitter, give us other opportunities to see how the unrealized lost profits due to capital gains that come soon due to the rise, well I will continue dreaming of buying a house with my hive and that will be enough to achieve the financial freedom we want so much.

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We tend to forget how great hive's technology is after staring at that god-awful price for so long

Ignore price and watch the development. In the end, that is what truly matters going forward.

The rest is just pumps.

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morale is also important is what I'm trying to say :)

suddenly, the banks look better. After all, most will charge $35 for a wire.

Bought some crypto using FIAT money today...Made a simple SEPA transfer to send the money to an exchange. Cost 2.5 Euro. It took 4 hours to see it in my balance but still...some eth trx don't even go through and you still pay fees while in other cases it takes up to an hour depending on the traffic...

HIVE>Banks>ETH...atm

Ethereum as you said, it's for a selected few and maybe the price is going up also due to being an exclusive club for the rich, so to speak.

Hive is for the masses or it will be for the masses. And you're right, costs should go down, not up.

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Bang, I did it again... I just rehived your post!
Week 42 of my contest just started...you can now check the winners of the previous week!
10

Another fantastic read 😊

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Esperemos que sea asi!Yo mismo acabo de entrar en HIVE ,me gustaria muchisimo si sigue comportandose bien en e mercado.Y que suba del precio claro ..ejjej un saludo! 🙂

Will you kindly explain what Defi is and its advantages to Hive?

I am not sure but look like disregardfiat proposal is not getting support from DHF.

If Bank transfer become cheap then crypto will lose it's sheen because 90% of time we know our money requirements (and can wait.) Governments in many nations are still trying to curb the crypto or the "true decentralized currencies." and pushing their own centralized digital currencies.

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Hive is different to Ethereum. We can coexist.

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Exactly

I agree 100%

Hive/Leofinance/3Speak are creating a unique Ecosystem where all current centralized data absorbing social media, along with DeFi can be hosted on one platform, where content creators and investors can escape the current, corrupt social media, investing and banking system. To take control of their content, money and future.

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Awesome! 3.png

I was surprised by the speed of this token and the very low fees

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👏 😎 That should go to the masses:

Hive solves the biggest drawback to Ethereum: the fees.

Hive would certainly be ideal for the scalability and affordability of the blockchain.

Nominee investors would have to pay absurd fees and transactions would be immediate. What are we waiting for? 😁

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I keep saying that the entire DeFi movement is a hugely underrated instigator of this entire crypto bull run. It was the DeFi industry that was building building and building all the way through the bear market.

Wild that Ethereum is only just starting to run above its 2018 all time highs now, when you could argue that it was the leading reason for the crypto resurgence!


I actually love the concept of Hive being the mini-Ethereum. The capacity we have here on Hive for DeFi is undeniable.

LeoFinance and the LeoFi brand is going to have a major role to play when it comes to getting the word out. The current Hive-elite have continued to build a great product behind the scenes, but it's LeoFinance who's taking that product to the masses.

Keep pushing guys!

PS. I love reading your work and I'm already voting your daily blogs from your @taskmaster4450le account. What's the difference between the two and should I be changing to vote this one?

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hive smart contracts second layers will have fees.

Mini fi sounds like a winner to me as opening up this to the masses is what is going to make Hive what it is. I have been looking on at DeFi in Etheruem and haven't got involved and know that there will be an opportunity on here at some point and can't wait.

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People doesn't realize how great Hive is. Ethereum fees is very painful to the pocket, compared to Hive which is fee-less. How great it is that there are Scot tribe out there,including Leo which is doing really great.

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Soon, we are going to see a decentralized twitter like service along with video storage that is not tied to any central servers.

Feel the potential of HIVE

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Damn it!

ETH path is really on fire!

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Check out the last post from @hivebuzz:

Feedback from the February 1st Hive Power Up Day

How many of those people are presently forced to sit out due to the recent fees?

Count me as one of them. Ethereum and bitcoin is a whales game. I've been spoiled by Hives ease of use and low fees. I find this aspect of Hive to be very unappreciated by the blockchain industry. I don't think it will stay under the radar forever though. Hive's gonna have its moment in the sun eventually.

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Seems to me there are definitely some parallels here... I'm not entirely sure that ETH reaching new ATH's because "it's Ethereum," as much as because of all things people are doing on Ethereum.

I expect Hive will also start going towards new ATH's when we have 10-15 LeoFinance0like communities cooking and all manners of other projects going skyward in their own right.

Yes, I realize this comment is a little off topic, but yes, I think Hive has every possibility of becoming a "mini Ethereum," in time.

=^..^=

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According to Blocktivity, Ethereum did about 1.3 million transactions in the past 24 hours. With Hive doing a little over 900K, that means this blockchain could easily do the transaction volume that Ethereum is without breaking a sweat. The best part is that it could do it for a fraction of the cost.

That comparison sounds great. It baffles me that with all of these testimonials about Hive, its adoption has been slow by even the crypto sect. What could really be the impediment.

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WINE Current Market Price : 1.100 HIVE

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Very interesting post! It is good to know all of this what you're saying. Thanks!

There is another issue with a blockchain having such high fees: suddenly, the banks look better. After all, most will charge $35 for a wire. Of course, the settlement time is still awful yet cryptocurrency was suppose to correct the problems the banking industry presented. Having a more expensive system does not provide much optimism for the future.

I am new to this technology and from the information and advocacy materials I saw about blockchain, they claim that blockchain will really make financial transaction less costly and affordable for ordinary people. Democratization and financial inclusion are the mantra that crypto advocates utter. However, I have been reading also a lot and read that people are complaining the cost of ETH and BTC transactions which is contradiction to the goals of blockchain. High cost will only benefit the rich and perpetuate financial inequity.
I am glad that HIVE and Leo are thinking through about how to lessen the cost of transactions.

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