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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Posted Using LeoFinance ^Beta