Hive is a Web 3.0 blockchain that offers a decentralized environment for applications, communities, and individuals. 

Hive’s goal is to build a platform that feels more welcoming and goes beyond cryptocurrency-related finance. As a result, beyond recording information tied to financial transfers, Hive Blockchain also keeps other kinds of data-such as social materials (including blogs and gaming information) as well as votes. The network is designed to scale, and it looks ahead to becoming a broadly adopted social and economic platform. Because blockchain-based transactions can be costly and slow, Hive is built to eliminate transaction fees and improve processing speed.

The Hive platform runs on two tokens. HIVE is available in a liquid form (HIVE) that can be traded, purchased, sold, and staked. When staked, it becomes Hive Power. Hive has also issued Hive Backed Dollars (HBD), a stablecoin meant to track the US dollar. HBD’s price is influenced by the token’s supply and demand, along with the platform’s capacity to buy back US dollars.

Hive Blockchain was launched after the sale of Steemit Inc to Sun Yuchen in February 2020, operating as a decentralized, independent fork of the Steem blockchain and created to address concerns around centralization that followed the sale.

What are Hive Blockchain’s key features and how does it work?

Hive focuses on delivering quicker transaction performance than many other blockchain systems, with transactions currently taking under three seconds.

The Decentralized Hive Fund (DHF) is a decentralized autonomous organization (DAO) that supplies funding for developing the platform. Community members can propose development efforts and submit suggestions, and they can vote on them as well. DHF is intended to prevent centralized control over regulatory updates.

What is noteworthy about Hive Blockchain?

Instead of using ‘proof of work’ mining, Hive uses a ‘delegated proof of stake’ approach. In this setup, witnesses (block producers) create new blocks, rather than miners. The system includes 20 full-time witnesses that users choose, plus a 21st slot for ‘backup witnesses’. In particular, only 10% of newly issued coins are paid to witnesses.

Hive also notes that blockchain adoption is still not widespread. Because of that, it aims to make the ecosystem easier for more people to access and participate in. It does this by setting aside the other 90% of new HIVE coins for participants who contribute in different ways, including creators, people interacting with content, curators, and Hive Power holders. Examples include publishing blogs, playing games, and building and engaging with dApps.

The Hive Ecosystem currently includes 126 apps, communities, and projects. One example is Hive Blockchains, which refers to Hive.blog, a social platform built by Hive blockchain and designed to bring social media experiences to a blockchain-based environment. Users receive HIVE token rewards for posts and blogs, allowing them to earn HIVE without needing either financial investment or technical mining knowledge. All content is stored on the blockchain and stays publicly viewable.

Hive relies on a stake-based Resource Credit system, so transaction fees can be eliminated. Users receive a limited allotment of Resource credits each week, and every action consumes a portion of those credits. If a user runs out of Resource Credits, they won’t be able to carry out transactions on the blockchain.