Hive (HIVE): A Hard Fork of the Steem Blockchain
Hive is a scalable, L1 blockchain employing a Delegated Proof of Stake consensus algorithm. Constructed upon the Graphene blockchain software architecture, Hive can process transactions within a swift three-second window and takes pride in its minimal fees.
The Hive blockchain is specially designed for decentralized social networks with the capacity for content monetization. Additionally, it can serve as a platform for launching blockchain games, NFT platforms, DeFi applications, and other dApps, thereby providing developers with a robust infrastructure.
The Hive ecosystem encompasses projects such as Splinterlands, Peakd, and Hive.Blog, to name a few. The blockchain itself features its own cryptocurrency wallets, HiveWallet and Vessel. Hive is also home to other publicly available cryptocurrency wallets such as Ecency and Keychain.
Any user can create an account on the blockchain, which then gives them access to all the social networks and other applications operating on Hive.
Applications forming the Hive ecosystem, source — hive.io
HIVE Cryptocurrency
HIVE serves as the native cryptocurrency of the Hive blockchain and its associated ecosystem, providing the project with essential liquidity.
When HIVE goes into staking mode, it morphs into Hive Power, a digital currency. Users who aren't operating a node to support the blockchain's functioning can delegate their HIVE to those who are, in return for compensation.
As per the project's tokenomics, the number of issued coins decreases by 0.01% for every 250,000 blocks. This equates to an annual decrease of 0.5% until it hits a floor of 0.95%.
The distribution of HIVE cryptocurrency is as follows:
- 65% intended for rewards for stakers and content creators.
- 15% allocated to HP holders.
- 10% destined for block validators.
- 10% reserved in the Hive fund.
At the time this article was written, the market capitalization of the cryptocurrency stands at $124.6 million, with 371.2 million coins in circulation. There is no preset limit to the max. supply of HIVE.
Beyond its native cryptocurrency, Hive's blockchain also hosts a decentralized stablecoin called Hive Backed Dollars (HBD). Its value is tethered to the US dollar. Holding this stablecoin in a cryptocurrency wallet garners interest payments. The interest rate fluctuates according to the community's consensus and currently, it's 20% per annum.
The Origin of the Blockchain
The journey started in 2020 when Justin Sun, CEO of the TRON blockchain, acquired Steemit, a decentralized social media platform built on the Steem blockchain. Following this acquisition, turmoil unfolded within the company. A faction of developers, supported by the community, decided to hard fork the Steem network, creating a new blockchain. This led to the official launch of Hive in 2021.
The Hive blockchain doesn't have a single executive leader. Instead, it's managed by the Decentralized Hive Fund (DHF), functioning as a Decentralized Autonomous Organization (DAO). In this structure, developers, validators, marketers, and other team participants propose various initiatives that require funding. These are then voted on for approval. The necessary funds are allocated from a common treasury, which is regularly topped up by contributors to the project.
Snapshot of Hive team members, source — hive.io
