Hive Getting Decentralized Smart Contract Capabilities "Soon"

in LeoFinance9 days ago

We are rapidly moving closer to the time when Hive will finally have a decentralized Smart Contract platform. This is going to really change the opportunities for the blockchain when it comes to DeFi.

This is something that was bantered about over the last few months. It is also one of the gamer changers for Hive that I listed for 2021. Getting this capability, even at the second layer, adds a great deal more flexibility to the blockchain.

Obviously Smart Contract can provide near unlimited opportunities for developers and entrepreneurs. They are not only financial but can serve other things. For this article, we will simply focus upon the financial aspects.

There is no doubt that DeFi is getting bigger. We are seeing a great deal more activity taking place.

Here is the present chart of the money locked up in DeFi. As we can see, the recent downturn in pricing of Ethereum hurt the numbers.


It is easy to see this is a realm which attracts a lot of money. Even the wLEO liquidity pool got up to near $1.1 million before the pullback.

Obviously, most of these numbers reside on the Ethereum blockchain. However, with Smart Contract capability, suddenly a lot of the projects on there can be replicated on Hive. Being decentralized will enable it to have the security and confidence of the using public.

Leofinance is one team (there might be more) who are looking in this direction. Here is a Tweet that was sent out providing a few details.


This project is focused upon its own token for obvious reasons. However, since the software is open source, it can be able to be replicated by other teams.

As for what this provides, once again looking at the DeFi aspect of things, we see this from their latest posts.

With LeoFi on the horizon, it's not hard to imagine collaterlized assets, lending, delegation leases and even synthetic assets arriving to the LeoFinance platform (and LEO token economy) within the first half of 2021.

This is a healthy list of options that look like they will be available within the next 6 months. Anyone who took a peak at what is taking place on Ethereum with DeFi will notice that names such as Maker, Compound, and Dai all apply to these areas.

Also, the swap feature is similar to Uniswap which allows for ERC20 tokens swapped for each other. We could see something similar on Hive with this sidechain.

Then we get a few more details.

To wrap this all up with a neat bow, we're launching a decentralized node network on top of the Hive blockchain. This will allow anyone to spin up a simple node that will verify sidechain blocks for the LEO token. The testnet for our new token will be out very soon (weeks, not months) and we will begin open stress testing. After we're comfortable with the testnet development, we'll deprecate the LEO token on Hive-Engine/scotbot and migrate our operations to our own second layer that is truly decentralized, robust and extremely fast.


The bold is my addition to highlight the decentralization of this chain. Anyone will be able to put up a node for block production. We will have to wait for the details but there will likely be some type of payout (return) for providing this service to the chain.

How Does This Help Hive?

To start, this is first of what I expect to be many platforms of this nature. Just like there are many UIs on Hive, including the Tribes who mostly have a clone of, this provides each community with another option. While it might not be for every development team, there are ones that will certainly pick up the mantle and run with it.

We got news of @threespeak's project which requires decentralized Smart Contract capability. Will they hop on what Leofinance is doing or create their own? In the end, from Hive's perspective, it really does not matter. That is more activity that is being added at the second layer.

As many of us keep harping upon, activity is the key. With more taking place, that requires more resources to interact. This Smart Contract design requires each node to have HP to operate. Naturally, the more active a node is, more HP is needed to facilitate the transactions. All transactions are recorded on Hive (I presume as a custom JSON) necessitating the Resource Credits to operate.

How much will be required per node on average is still a mystery. Nevertheless, try to envision thousands of different nodes operating, relating to many different projects. Some will have few transactions while others have an overwhelming amount.

In short, this provides another sink for the Hive token.

But let us not forget the Resource Credits. Not only will node operators need them for the transactions, but also the individual initiating the transaction. Like anything, to operate on Hive requires at least a minimal amount of Resource Credits.

Here is where things get very interesting, at least from the DeFi perspective. One of the major advantages that Hive has is no direct cost on transactions. As long as there are enough Resource Credits, there are zero fees associated with the transactions. This is not the case on Ethereum. Just recently, people were paying more than $50 on a single transaction. We know this excludes a large number of transactions. After all, who would logically pay $50 to send $75. That makes little sense.

On Hive, that is not a problem since the cost would be zero.

Hence, we can look at this as a subscription model; for $50, one can get, at present pricing, 416 HP. That is more than enough for most to transaction daily without a fear of running out of RCs. Stated another way, for the cost of one transaction on Ethereum during peak times will virtually give one a lifetime of transactions on Hive.

Hive As Ethereum's Little Brother?

Just looking at the numbers, it is obvious that Ethereum is for the big players. As stated, one is not going to make a transaction of a few hundred dollars with those fees. Even if they drop into the $10-$20 range, that is still 10% on a couple hundred. That is steep.

Hive has the opportunity to target smaller users who are looking to be involved in DeFi. Microtransactions can add up to a lot. Imagine having Liquidity Pools that will allow people joining with any amount of money. Again, on Ethereum, a certain threshold has to be hit before it becomes economically viable to participate.

Many in the world do not have thousands to put into something like that.

In my view, with developments such as this, we are starting to move towards being able to replicate a lot of what some of the larger chains can do. This is likely to provide Hive with a large boost in overall usage. In the DeFi world, it only takes a few projects getting a bit of attention to get the ball rolling.

Couple this with 3Speak's idea of the SIP, drawing even more Hive into a Smart Contract while locking it away, and we can see how there is suddenly a move of keeping Hive within the system as opposed to it moving onto exchanges.

We will see what information comes out in the next few weeks but this is exciting news.

2021 might just be the year Hive makes a statement that the crypto world does not ignore.

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

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2021 might just be the year Hive makes a statement that the crypto world does not ignore.

We've already made a statement but it wasn't exactly the best :D

The more development we have, the more advanced we become compared to other platforms. 2021 is going to be an exceptional year for us, I'm pretty sure of that.

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I think it comes down to the more offerings there are for people who show up here. The more of the different aspects of the industry that we penetrate, the better things are.

It could attract a wider, larger crowd.

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This kinda thing is exactly why I could care less what the hive price is. could drop to $0.01 for all I care, as long as people are still building I'm sticking around.

If it dropped to $.01, there would be a lot of buyers, myself included.

In fact, if it ever dropped to 5 cents, I think there would be a ton of buyers.

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Paying 50$ or 400+ hive per for a transaction is much and I agree with you that it's for big players.

While hive on the other hand is transacting based on resource credit and no additional fees attached. Thats what decentralization is all about.

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Well it is what will attract users I believe. I am not sure it has a great deal to do with decentralization. Ethereum has a degree of that too, it is just very expensive.

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This is great information for the community. Of course, obviously, for most content creators, even this is something a bit difficult to assimilate, since the main activity they develop is in sharing art and philosophy in its various expressions: literature, painting, music, photography, news analysis in various fields, science and religion, just to mention a few.

Now, having traveled a little over a year; I am turning my attention to these technical and financial issues, which I consider to be of vital importance to the success of #Hive. What you tell us is exciting and promising, and this encourages me to continue creating content for the communities in which I am involved. I think we now have a clearer vision of what is wanted.

The key is there is something here for most everyone. That is the cool thing that is developing. Blogging is still a part of the platform, microblogging starting to appear, DeFl, and gaming.

Who knows what else people will come up with.

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Well, if this were to be consummated, it would be the boom for us who here continue day by day, trying to grow more and more by supporting and creating content, this defi world is something very beautiful that has caused many to burn their hands, many people have made a lot of money and others have lost that money, as they say in finance the relationship is reversed, one gains another loses but that's the way things are.
Unfortunately we have not had the opportunity or the possibility of entering the DEFI world since as you say, who would think of moving US $ 75 and paying $ 50.00 for that, it is crazy true but hey once we get in between then we can do wonders around here.
Well, let's hope this gets here and our chain is one of the great drivers of these great changes, maybe @dan will join the party. We have seen him approaching lately. We hope to give a little boost to our brave and praiseworthy community.

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Man, I feel like all of this stuff is coming at me so fast I can barely keep up with it all. I know a lot of people are really interested in DeFi. I personally don't understand it too much myself. I think they need to make a DeFi for dummies book. I feel like a lot of people just use it to stake collateral so they can get crypto to convert into other crypto to stake more... Like I said, I don't understand it too much. I like what it stands to do for the blockchain though, that is very exciting.

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It is an interesting journey, well worth the time to learn about it over time.

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Now it's the time to market hive/leo and the new microblogging app. Now that twitter showed the people what they can do and how against free speech they are!

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Not until the application is released. We still have no idea what it will look like or pertain to.

It is exciting but it is still likely a month or more away based upon the post yesterday.

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One amazing game changer here will be from the fact that Hive will be capable of doing what ETHEREUM can but without fees!

With LeoFi on the horizon, it's not hard to imagine collaterlized assets, lending, delegation leases and even synthetic assets arriving to the LeoFinance platform (and LEO token economy) within the first half of 2021.

This part right here will put Leofinance on a pinnacle, we will experience the shift from a simple blogging platform into a full fletch financial platform. Suddenly it seems like earning a living through the various initiatives within the Leofinance platform is becoming a reality.

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Yep and in turn, it will turn Hive into that also. Also it might be a smaller percentage of the while for Hive, since there is blogging as well as game, it is opening a door for so much more.

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@taskmaster4450, In my opinion if anyone is reading this blog outside hive world then definitely they will not ignore hive. In my opinion hive is unsung space which is slowly building something really empowering. Stay blessed.

At this point, unless they are fairly technical or familiar with Hive, they might not understand it. The Resource Credit idea is not known to the average person. However, it will help pave the way when things do go live.

That is the ultimate attention getter; giving people something they can use.

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At first new users will face challenges to understand the whole resource points and whole hive ecosystem, in this case collective efforts towards knowledge sharing is needed. Stay blessed.

Great. Having lower gas fees is always better and It will be an incentive for people to actually stake their HIVE.

Nice Article thank you for this important information

On Hive, that is not a problem since the cost would be zero.

This has to be such an incentive that when we have this capability I think it's safe to say that we'll moon ;)

Great! But please, test it not in the production this time.


Cheers, @siphon You Successfully Shared 0.100 WINE With @taskmaster4450.
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WINE Current Market Price : 0.000 HIVE

I think it will be very cool. More, more and more activity !!!

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Big game changer! On the other hand I feel like all things Leo is doing is big game changer right now 😂

That is true although I will say, in this matter, it is likely just leading the charge. I have a feeling other communities will pick this up and do something similar.

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Yes, they should look at Leo and see that "this is one way to do it" and use that info to make it their way. Just the notion that someone has made it before them can help many tribes to see that it is possible

Leo does provide a road map for others to follow, at least as a guide.

My view one of the biggest things that is to be done is to make your own interface. Using the one that looks like is not going to attract users in my opinion.

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Amazing! animado.gif

Bang, I did it again... I just rehived your post!
Week 39 of my contest just can now check the winners of the previous week!

But what will become of Hive-Engine and the centralised and controlled exchange that it is. I think it has served a purpose but there is too much control and potential for abuse in the current format. All it takes is for one certain person to go rouge and we are in the poo!

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I believe that Defi on Ethereum has been a nice experimental experience. We can now learn what is working, what is necessary and what is not. Then we can translate this to Hive and here defi will explose because it will be available for any size of wallet and not only those that can afford to pay $50 per transaction!

We have the potential to be way more than some little brother to Ethereum. Our strongest feature is what @theycallmedan call the Layer 0 AKA the community. Take wLEO and wDEC. We have a significant amount of users locking up their tokens to provide liquidity since day 1. Release a DAPP and there will be a community ready to use and provide feedback.

@dbuzz is now world's #100 DAPP based on rankings. It's a project without any big tech involvement. It grew out of the community and HIVE users elevated @dbuzz to the level it is now. I haven't seen any other blockchain community with such a powerful community.

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Such a great news!

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soon = never... ahaha.