Spknetwork SIP: Potential To Eat Up A Lot Of Hive

With the introduction of the @spknetwork Light Paper, we got a bit more insight into what that project is planning. It seems the scope is much bigger than any of us were led to believe. This is not just adding decentralized video storage to the world of social media. Instead we are seeing an entire platform being built that is using multiple chains. It looks like it will be capable of providing any services that are available on Ethereum.

Since there were no target dates announced or specific road map, we are only left to speculate the timing of all this. What we do know is that as this unfolds, we are going to see a system put together that takes decentralization to a completely new level. This will further enhance the push away from the centralized entities that are able to control accounts and remove content.

There is a lot to digest in the Light Paper. It is something that most of us will not fully understand until it starts to roll out. Despite that, it is evident this is a terrific opportunity for anyone who gets involved. This platform is going to offer many different ways to reward people. Thus, each is free to determine how involved he or she would like to be.

Of course, this is not operating in a vacuum. It is going to be built upon a couple different blockchains. Hence, it is not a new blockchain project as much as a multi-chain platform that seeks to offer users all the technology that is needed.

spknetwork.png

This is great news for Hive. To start, the platform is going to use Hive for all its text posting. Just like we see with 3Speak.tv, all posts on that application appear on Hive. Naturally, the video is not on the blockchain since Hive only stores text. Nevertheless, it seems that all videos that are run on the Spknetwork system will be posted to Hive.

Here we could see a major increase in volume if this is indeed the case.

Is this a situation where Hive becomes a major part of the account management system? This is another thing that is unclear at this point. The system is going to allow users to sign up with Twitter, Facebook and Google accounts. It is an easy way to start to onboard people without the hassle of dealing with keys. However, on the back end, to interact with this blockchain, a Hive account is needed. Will it be a proxy account handling it all or will each user have a Hive account created that they can claim similar to what Leofinance did? It would seem that it all depends upon how payouts take place.

That said, the area that could have the biggest impact on Hive is the SIP.

This stands for Service Infrastructure Pools. It looks like this is a foundation for which the entire project is build. There also is the case that could be made that it is about to entirely change how we approach token usage.

From what we can garner, the SIP is a one-way street. What goes in does not come out. Think of it as a lockbox very similar to a Null account. When projects burn tokens, they do so by sending them to an account, often Null, where there are no keys. Hence the tokens are "burned" in that they are removed from circulation.

The SIP is a bit different. This is not a burn nor are any tokens being destroyed. It does not reduce the inflation rate nor lower the float. Instead, it puts the tokens to work.

Why burn money when you can use it to generate more money? That is the concept that is being followed.


Source

To give a basic overview, the SIP will have 4 tokens tied to it: LARYNX, SPEAK< BROCA, and HIVE. The last one is there to be a pair for all the rest.

The HIVE token goes into the SIP via purchases of advertising or LARNYX (mining) tokens. When this happens, the HIVE is split 3 ways: 1/3 each in SPEAK, BROCA, and HIVE.

Here we have a permanent liquidity pool forming for each of these tokens. This is a decentralized "exchange" that allows for the swapping of tokens. Over time, the goal is for all the activity to feed into this pool, growing it in size. This means that we could see the largest pool of these tokens, thus reducing slippage while also having massive liquidity available to all traders.

We can also surmise that if enough activity is taking place, the feed generated can fund a host of different options. In addition to miners, it is a way to pay for development, either on the Spknetwork or the associated blockchains.

Going one step further, this is just the base layer of the SIP. This is not the end of it. As communities decide to build on the Spknetwork, they will also have the ability to create their own SIP. Think of it as ultimately a web of SIPs, all containing different tokens and providing liquidity for all who need it.

This is from the Light Paper:

he SIP model can be adapted and applied to any digital service on DPoS chains, not only service infrastructure providers for content.

As the project progresses, the vision is that all Breakaway Communities (see section 8) will be backed by their own SIP's, all tying into an integrated, optimised multi SIP infrastructure ecosystem.

Hence, the idea is to keep duplicating this idea across many different communities, most of which will end up being tokenized. This could provide a great deal of liquidity to their projects as they follow a similar governance model as SPEAK.

From Hive's perspective, this could lock up a great many tokens. We know the advertising money that is generated by the likes of YouTube. It runs into the billions of dollars each year.

While we will not presume the Spknetwork will match that (it could over time), it is easy to see how this is providing an enormous sink. The fact that HIVE is the only token used to acquire new miners AND advertising provides a great use case.

All that goes in does not come out.

This is akin to burning HIVE each time someone makes a purchase on the Spknetwrok. If there are millions of videos being uploaded, viewed, and tokenized, we will see this process eat up a ton of HIVE. There is simply no other way for it to unfold.

One of the key ideas behind this project is that content creators can earn not only token but the revenues from the advertising. This is something they miss out on with YouTube and platforms like that.

Therefore, they have more control over their content as well as operating under a better monetization system.

To be honest, this concept could spread very quickly. It would not be surprising to see a few large communities jump on this idea.

Finally, we are only focusing upon the area that most of us are familiar with. This project is going to also be heavily focused upon DeFi and NFTs. All can be built on the network but utilizing the inexpensive fee (or fee-less) structure.

Be sure to check out the Spknetwork for more information.


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

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Bang, I did it again... I just rehived your post!
Week 55 of my contest just started...you can now check the winners of the previous week!
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The fact that HIVE is the only token used to acquire new miners AND advertising provides a great use case.

That should have a positive impact on the price.

This project looks very promising and it might change my view regarding vlogging. I hope it will attract content creators outside Hive as well.

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I would imagine it will. Dan is going to market this to some good communities.

Hopefully the platform will be rolling out soon.

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Had totally missed this... and this seems huge! Thanks for the heads up!

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Is there a timeline for rollout? Do you have a link for the Light Paper? Also is there any potential for this system to connect in any way with Polkadot?

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My only worry with decentralised video/image platforms is what happens when/if child pornography is uploaded to it? A centralised authority can act on reports to expunge content, but on an immutable decentralised ledger it becomes much harder to do. I suppose witnesses/nodes could all come to an agreement to remove the content but there would need to be some near infallible method of doing so that wouldn't be able to be abused to remove other content that breaks no rules/laws.

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This is a very, very good question to be asking. Though I have a sneaking suspicion that the actual offending content will not be stored on the Hive blockchain itself, as the blockchain does not store images. Any reference to such imagery would be a link to where it is hosted somewhere else. If that were to happen, odds are good all the front ends would decline to serve it, and probably alert Interpol to the link's existence. From there, they've done their due diligence and they don't necessarily have to worry as much.

As for SPK, they're going to be the ones who will have to decide what to do if the images/video are uploaded and stored on their servers. I suspect there will likely be a ToS addendum somewhere to prohibit such obscenities.

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Video is not on the ledger, only text. So there is nothing on the blockchain.

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So then the videos aren't actually decentralised, just linked to via text that is decentralised. Exactly as it is now on Hive. Struggling to see what's so different about this then, seems like more tokens for the sake of tokens.

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The videos are going to be housed on different people's computers through the client. So you decide what you want to host and then be a part of the video storage.

For Hive, it is only text.

Videos right now, as far as I know, are on a centralized server that the 3Speak team is paying for.

seems like more tokens for the sake of tokens.

If you think that then you really havent been paying attention.

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The videos are stored by miners on IPFS. The CID hashes from IPFS are stored on Hive in order to perform the PoA "random file access." Bot the videos and text are stored in a decentralized way which is incentivised by the speak network.

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To further expand, in order to get a reward from mining on the Speak Network, you'll need to prove you have a random historical piece of the network downloaded. Fail/pass checks are performed on IPFS. Blockchain is used to reward miners with the SPK token. So the videos will need to be downloaded, or the miner does not get paid. It's using both IPFS and Blockchain combined into a fully autonomous system.

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That kinda of garbage is already floating around everywhere on decentralized torrenting places, yet none of the torrenting places are shut down nor do they remove it. In my opinion stuff like that should be removed.

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PoA allows for miners to be very flexiable. You can add as much or as little of the network as you want and you can delete any part of the network you want. In the event of illegale content, miners can flag such content, when enough miners flag the content, it becomes booted from PoA. Miners, users and platforms can also opt into "filters" where certain content, IE rated mature content, can be filtered out.

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It is up to the front ends to filter that out just like it is now for any centralized front end.

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(Edited)

The entire SPKNetwork seems to have been designed around openness, decentralization AND interoperability. What the economy of SPKNetwork does (including the SIP component) is take the most successful ideas around and make a whole (communities, IPFS, PoS, PoB, PoA, "proof of watching ads", defi, NFTs).

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It was certainly put together after a lot of exploration and testing of other systems out there. They took a lot of what others are doing.

This is going to probably push it ahead of most other things.

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Before getting to the last paragraph while reading along, I thought to myself what if these tokens gets involved in DeFi as well and seeing you mention that in the plans in your last paragraph, it appears we will be tapping into a massive source of wealth here and it would be wise for everyone to stick around for this party.

A party which everyone is free to attend!

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Certainly a possibility that we could see a lot of money attracted.

It all depends upon what is built upon the network. I am sure we will see a ton of different applciations.

This is getting very exciting.

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As someone has to mention in every post, here’s yet another thing to keep up with. I’m tickled pink. I’ve never been so happy to be so busy trying to keep up with anything. Hive is beginning to dominate all my free time and it’s just not enough to stay on top of it all. I don’t recall ever having such a complaint and I hope to be bitching and moaning about it all the way to the moon and beyond.

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I cant argue with it. There is so much to keep up with. We will really see a different world once some of this stuff starts to rollout.

We are in the planning stage of a lot of stuff (or perhaps coding). Either way, we need to get the applications on the market.

In due time.

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Honestly, it feels like there’s no stopping us. Even if we stayed flat 5 more years our tech is superior, our devs are dedicated, and the community that’s been here through it all isn’t going anywhere without a catostrophic event from which there’s clearly no recovery. Even if we only get one new member a week, and it takes a century Hive will be around to herald the dawn of the new age.

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Well the development needs to keep going. Flat in terms of price, that is one thing.

Flat in terms of what is being built, that is something completely different.

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😊 My position just assumes development will keep rolling out because of the devs we have and the community backing them through the gates of Hell if we have to.

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(Edited)

all Breakaway Communities (see section 8) will be backed by their own SIP's

What would be considered a Breakaway Community? Is it different from the existing communities?

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I think it is a community like on Hive.

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Yes but would a community on HIVE have to create a new community on SIP and what would be the incentives of doing so? I have a hard time trying to figure things out.

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Todo se puede construir en la red ciertamente aunque con un modelo descentralizado. Existen algunos riesgos que es necesario preveer.

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Very interesting. I am not sure I understand the mechanics of it all yet, but it is a little more clear than what I had first heard about it. I think a lot of it will just boil down to me seeing it in action and then I will probably be able to figure it out a bit more. Is there a concern that eventually the Hive will run out if it really takes hold and then what happens?

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Is there a concern that eventually the Hive will run out if it really takes hold and then what happens?

I am not sure what you are asking. Would you elaborate?

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So I am assuming Hive has a fixed supply. If you are locking those Hive up into the spknetwork to get those other three or four tokens couldn't the supply of Hive eventually run out if the platform is really successful. Am I not understanding it correctly?

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Hive has an inflationary rate that is decreasing each year but more Hive is created. The SPEAK token is capped which is the deflationary one. Maybe that is what you are thinking about.

HIVE will be locked up in there reducing the float that is around. That will add more to the price of HIVE (or should) which means it will take less HIVE to acquire LARYNX or pay for adds.

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Ah, okay. I was just worried if there isn't an infinite supply of Hive it might all get locked up and there wouldn't be anymore liquid for people to buy the other tokens with.

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The more Hive this project will burn the more I'm going to be excited for it :) I'm not going to stress my last brain cell with how it will all work until we are close to launch :)

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I need to draw it on paper so I could visualize it better. It's a lot more to grasp than I thought haha.

Perhaps it would be cool if @theycallmedan and @starkez agreed on making an AMA with the community - Both on Twitter and Hive.

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I was super excited reading the light paper. They are combining true decentralized video storage with things which people can get super hyped about because they can make lots of money. So we have true technological decentralization AND likelihood of adoption due to excitement and capital flowing in. Great job!

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It is much bigger than decentralized video storage and, thus, more exciting. I think people need to be aware of this opportunity.

We could see something fabulous in the making.

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Yep hive and the decentralized social media owner ship is something great!
I’m happy that I’m on hive now looking forward to see it unfold.

Namaste 🙏

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Thanks for sharing your views @taskmaster4450!!! I am really excited about this and it would be so great to see it becoming a reality.

From what we can garner, the SIP is a one-way street. What goes in does not come out.

I have a doubt though, Will SIP not use this locked HIVE for anything? If this locked HIVE is not used, then we can say those coins are out of circulation and they won't be further used to mine more Hive through curation or probably delegation.

But it might as well burn those tokens by sending them to @null. Somebody must own the SIP account, right? Most probably the 3Speak Team.

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Think of the SIP as a liquidity pool like on Ethereum. The money going in for advertising and LARNYX tokens are automatically put into the LP. Users go in and out of the different tokens but they are never removed from the LP by the owner.

The keys for that account are destroyed just like with a null account.

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Ah, I got it now. Thank you so much for the explanation.

So nobody will hold any authorization on that account. And it will all be automated. Sounds really cool!

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I have no inside knowledge but that is how I would presume it would be. The account needs to be locked and the easiest way to do that is to lose the keys.

That is what Null accounts do.

As for the automation, I do not see someone manually doing the swaps every time enters so that will have a bot that does it.

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Yeah, must be a bot handling those transactions. Since they are allowing anyone and everyone to participate. It doesn't make much sense to do it manually.

Once we see things unfold and developments start to happen, maybe then we will get a clear idea of this.

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This looks great and should increase traffic which is good for using RC credits.

Thanks for the breakdown.

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I would surmise that this will feed a great deal into the need for RCs if the network takes off, at least the video part of it.

More posts on Hive require more RCs.

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Yeah, always baffles me why some of the large stakeholder seem to work against the idea that the more people "Feel" like they are winning, the more they want to play.

That is playing out everywhere in crypto, yet we seem hell bent on making up weird rules and being critical of users.

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Yeah I agree with you. Unfortunately, many who own a lot of stake have a great deal of coding skill but that is it.

It takes people like Dan a lot of times to change that. Things such as this can totally overwhelm the system and alter the path of Hive radically.

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Hive is really good at generating some startup revenue for various projects and communities. Makes me want to try and start a new project.

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Glad you are around to help simplify what it actually does and how it works. This is way bigger than what any of us first thought and is definitely a massive undertaking. Things are warming up and this is really exciting.

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Well I am not sure that I am simplifying things. It is a pretty involved project it seems. I just focused upon one aspect that were discussed in the past and laid out in the paper.

There are still areas I am in the dark about but that is okay. We will get more info in due time.

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Sounds pretty awesome still trying to figure it all our reading over thing we have but wont fully grasp all of it until it launches and can get hands on with it.

One of my favorite things so far about the project is the easy on boarding. Allowing for easy creation of an account which is familiar to people on the likes on Youtube, twitter, facebook etc. but then allowing them to guide in to having a Hive wallet with earnings within it. This is going to drastically improve onboarding new people and instead of hitting a brick wall of confusion with setting everything up they can take it all at their own pace.

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Man. Web3.0 is going to be absolutely wild.

Linked this post to a few content creators I know.

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Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

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nice to read your take on this I have just been looking at The spknetwork proposal its holds some exciting prospects.

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I did not realize that they were doing onboarding using facebook, twitter and google. This is exactly what I was talking about the other day! I like the idea of generating tokens with the burnt supply, but am a bit wary over it (perhaps due to my lack of understanding) because if there is no null account won't someone have access to the keys? They could be stockpiling for a rug pull (I don't believe this I am playing devils advocate)

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If I'm honest, the SPK network is probably the most exciting piece of development coming to Hive.

For me, even more so than anything that the LeoFinance team is building.

I just hope that it's not merely talk and something actually gets done.

Take a leaf out of Khal's book and just build :)

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I read it a couple of time, but didn't get the full picture to understand which token I should buy as a (semi)passive investor.
The white paper was quite complex.

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Why burn money when you can use it to make more money.
This is a new learning for me. This is also an appealing concept.
My only question is that will there be any restrictions on the content that will be uploaded? As people get carried away and upload nsfw content.

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