Interview with Hive in Capital | By Capital | Capital | June 2021
Since our last interview, we have been busy researching the underlying Hive technology and its infrastructure.
Hive hard fork balance It is scheduled to be held on June 30th at 1400 UTC.
What is the goal of the latest Hardfork protocol change?
In this hard fork, we paid special attention to improving the economics of Hive.
Introduce recurring payment operations
Our vision for Hive is to create a powerful platform for decentralized applications and services. As part of this driving force, circular payment operations have been added to the blockchain protocol to improve the efficiency of dApps and services that benefit from receiving subscription-based micropayments.
Stabilize the USD peg of USD supported by Hive
Hardfork 25 aims to stabilize the dollar peg of the U.S. dollar supported by Hive. Hive-backed U.S. Dollars (HBD) is a unique trustless stablecoin supported by the potential value of the Hive blockchain itself, rather than external collateral or centralized entities.
This support takes the form of on-chain conversion operations, allowing HBD to be converted to Hive’s own dollar equivalent value. For example, 10 HBD can be converted into HIVE worth 10 USD. This conversion mechanism from HBD to HIVE effectively links the value of 1 HBD to the value of 1 U.S. dollar. However, due to intermittent speculation on cryptocurrency exchanges, it did not prevent HBD from gaining a value much higher than $1.
In order to solve this problem, a new conversion operation was introduced that can convert HIVE to HBD, allowing market makers to create more HBD to meet the demand for HBD when the price starts to rise above $1. This new HIVE to HBD conversion will create a balance point where HBD will be pegged to the high side and low side of dollar pricing.
Create stable investment opportunities for chain investors
In related changes, the HBD stored in the Hive savings account will receive a variable interest rate (the current interest rate is set based on the median vote of the block producer). This will create an attractive opportunity for cryptocurrency investors who hope to obtain a reasonable rate of return on investment through low-volatility assets (that is, stablecoins that do not require trust), but they also want to keep the assets in their own crypto wallets. Instead of entrusting the assets to the custodian cryptocurrency exchange or bank.
Improve the reward system for content curators
An important aspect of Hive is that it is not only a decentralized financial ledger with one of the highest transaction throughputs, but also a network for sharing and rating information generated by the Hive community. Funds are paid to content creators and content. Curator. This hard fork continues the trend of improving Hive.
The average Hive management reward of voters who rate social media posts on Hive usually results in a 6-15% return on the pledged HIVE (aka Hive Power). But in the competition for these rewards, artificial intelligence-based voting robots usually have an advantage over human voters. Hardfork 25 simplifies the rules of how to distribute rewards to content curators and further rationalizes the reward system by placing manual voters on an equal footing with robot-based voters. The new rules also eliminate the need to “vote in a hurry” before other voters to maximize curatorial rewards.
Improve and strengthen Hive governance
First of all, some backgrounds are in order…
Hive was originally created in a 51% attack. In this attack, the controlling stake was concentrated to forcibly take over the public Steem blockchain at the time and overthrow the witnesses of the community election through centralized producers. These attacks are one of the main problems in the DPoS protocol, and they occur when an entity reaches a consensus with a majority of votes. Although Sybil attacks are usually solved through the DPoS mechanism according to their original design, governance attacks that use rights as a weapon are not. Before the hostile acquisition of Steem, no clear coordinated and time-sensitive DPoS blockchain acquisition case was successfully executed. Such attacks usually require a large investment of funds to form a series of indicators in the market. In Steem’s case, the attack was carried out by three major exchanges, which placed their customers’ funds on the blockchain. This is unprecedented, for many reasons, including collusion between seemingly unrelated exchanges.
Is your team trying to solve these types of attacks?
Yes we are. We understand that no type of attack can be completely eliminated as a threat. The first step in mitigating future attacks is a 30-day delayed vote on governance to monitor for obvious signs of attack preparations. The vote of witnesses and DHF (funds) proposals is postponed for 30 days after the “power-up”, that is, the mortgage of funds. Before these 30 days, no equity is considered in governance. However, this alone is not enough; in order to further ensure DPoS and prevent abnormal situations while promoting a dynamic governance system, the participation of stakeholders needs to be emphasized.
Starting from Hardfork 25, voting will expire. Each account needs to conduct a governance transaction (voting for witnesses or proposals, deleting their votes, or changing their proxy status) once a year so that their votes remain the same. An equity account that is inactive or locked due to the loss or destruction of the key or the death of the owner will naturally weaken its impact on the consensus. The end result is an active community and realizes that during the 30-day voting delay period, they will be reminded of indicators of attack preparation signs.
Hive developers will continue to strengthen DPoS governance and increase the protocol’s resilience to malicious actors and attacks.
A complete list of Hardfork 25 changes can be found on our website Gitlab repository.
There is a lot of discussion about the environmental sustainability of cryptocurrencies. Will the Hive hard fork answer this question?
Hive already has one of the most energy-efficient footprints in existing cryptocurrencies, especially relative to its high transaction throughput. But we have been working hard to further improve the efficiency and scalability of the Hive network, which in essence also reduces the amount of resources required to run the network.
Network efficiency is also very important to Hive’s goal of providing a highly decentralized network in which nodes can run on affordable hardware owned by individual community members without the need to host nodes on expensive cloud-based servers.
With each upgrade, Hive has become more modular, allowing only the basic services they need to build new Hive-based dApps. New dApps can reduce their initial resource requirements by leveraging the publicly available services provided by Hive volunteers until they reach a point of growth, thereby making it beneficial to operate their own server infrastructure.
Because Hive infrastructure is highly distributed around the world, operators can choose their data centers and service providers ethically. This not only helps us reduce our carbon footprint, but also indirectly helps the local economy of our contributors. Hive Hardfork 25 is another milestone in our goal of minimizing resources.
Already very insightful. Before we end, would you like to share some of your social links?
Thank you for having us.
Although we are a huge ecosystem, here are a few key links:
…On mainstream social media: