If the future of cross blockchain trading is Modular Blockchains, are Hive and Hive-Engine a peek at the future?

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(Edited)

Hive the futuristic blockchain?

I recently wrote a post about modular blockchains, here. And in this post I spoke of Modular Blockchains as the future of Ethereum, and a potential solution to Ethereums issues. In brief, the concept proposes that instead of changing Ethereum's consensus mechanisms, and utilizing a proof of stake blockchain to improve transaction speed, and potentially lower transaction costs (gas fees) that Modular Blockchains are a setup where a second blockchain utilizes the same token as the Ethereum blockchain, but it is only used for transactions. Settlement (security) and data base storage, would occur on Ethereum. This allows improved speed, lower transaction costs, but retains Ethereums security. Its a bit of a long discussion, best viewed Here.

After writing that post and interacting with people in the comments of that post, I realized that in some ways what Hive developers have created here is a modular blockchain like construct.

  • Hive is the main chain.
  • Hive is the token.
  • Hive-Engine is a side-chain.
  • Transactions occur on the side chain, but settlement occurs on the main chain Hive.
  • Although there are many tokens on the side chain of Hive, like Leo, POB and others, they all define their value in terms of Hive token.
  • Although we clearly developed the Hive-Engine side chain for different reasons then transaction speed and transaction cost, the result is similar.
  • The three core functions of a blockchain are transactions, settlement and data storage.
  • The concept of modular blockchains suggests that all three functions don't have to occur on one chain, and transactions can occur on a side chain, which is faster and cheaper to transact on then the main chain, while settlement and data storage still occur on the main chain.

Hive Centric Bias

I realize this posts shows my bias towards Hive. And I realize that Bitcoin and it's side chain Lightning Network are a better example of the concept of modular blockchains at work.

  • Bitcoin is the main chain.
  • The Lightning Network is the side chain.
  • Both Bitcoin and Lightning use the same token Bitcoin.
  • Transactions occur on The Lightning Network and they are bundled and ultimately settled and stored or recorded on the Bitcoin main chain.
  • Thus of the three core functions transaction, settlement/security and data storage/recording only one has been moved to the second blockchain; The Lightning Network. While security and data storage are still being performed on the Bitcoin main blockchain.
  • The entire purpose of the Lightning Network is faster transactions, and cheaper transactions, and it has been successful.

Last Words

The future of cryptocurrency is dependent upon innovation. Hive and Hive-Engine are a marvelous examples of innovation, which we take for granted. But if you spend enough time on other blockchains you realize how far ahead of the other blockchains we are here, and how lucky we are to live on Hive.

The End..for now.
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16 comments
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No doubt Hive is far ahead of other's with the number of projects built on here.

It'll only take time before we start seeing more being built, which will further increase the future use case and value.

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I agree that Hive is far ahead of many of our brethren. As you state, as more projects are built, others will discover this place and it will grow and flourish. Thank you for commenting, I am going to your blog to look around now.

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I think most of us on HIVE are kind of bias towards HIVE. I can't see a reason why we should refuse a fast and feeless blockchain. It's the reason why I think people are willing to do more transaction

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(Edited)

Just a couple of points about Lightning:

  • It's not a blockchain and the vast majority of transactions are private;
  • The only part of it that is public is channel opening and closing, what went on in those channels while they were open is known only to both sides of the channel;
  • Even channel owners, however, sometimes route payments and don't know where those payments are coming from or going to;
  • You can't publicly verify a payment from one node to another, but the sender and receiver of a specific transaction both have proof that it occurred.

Having now gone deep into using Lightning, it was a hell of a job to get started with it especially compared to Hive. It has some significant drawbacks but for small payments and temporary small holding accounts it's very good.

If you want to play with it, you can immediately get a few thousand sats (up to 70k in a single 4 hour period) from my bridge: lnd.v4v.app into any of the common Wallets like Breez, Muun, Wallet of Satoshi or any of the Podcasting 2.0 apps like Fountain, Podfriend and a few others.

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Hi @brianoflondon

Thank you for sharing your knowledge of the Lightning network. This is why I am here, to read snippets of information from the brains of hundreds of others operating and experiencing things in this space through them. This is fabulous.

@defigeek

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It’s true that hive users are all lucky. Because it is far ahead of other blockchains. Hopefully in the near future Hive users will get many more benefits and will be more lucky.

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