Since our last interview, we’ve been very busy working on the underlying Hive technology and its infrastructure.
Hive hard fork balance is expected to take place on June 30th at 1400 UTC.
What are the goals of the protocol changes in the latest hard fork?
With this hard fork, we put a special focus on improving the profitability of Hive.
Introduce recurring payment transactions
Our vision for Hive is to create a robust platform for decentralized applications and services. As part of this effort, recurring payment operations have been added to the blockchain protocol to increase the efficiency of dApps and services that benefit from receiving subscription-based micropayments.
Stabilization of the USD peg of the hive-backed dollar
Hardfork 25 aims to stabilize the USD peg of the hive-backed dollar. Hive-Backed Dollars (HBD) are a unique type of trusted stablecoin that is backed by the underlying value of the Hive blockchain itself rather than external collateral or a centralized entity.
This support comes in the form of an onchain conversion operation which allows HBD to be converted to an equivalent USD value from Hive itself. For example, 10 HBD can be converted into HIVE worth 10 USD. This HBD to HIVE conversion mechanism has effectively set the value of 1 HBD at or above the value of 1 USD. But it hasn’t stopped HBD from seeing values much more than $ 1 due to intermittent speculation on cryptocurrency exchanges.
To solve this problem, a new conversion operation will be introduced that will allow HIVE to be converted to HBD, which will allow market makers to generate more HBD to meet demand for HBD when the price starts to rise above $ 1. This new HIVE to HBD conversion will create an equilibrium point where HBD is anchored on both the high and low sides of the USD price.
Create a stable investment opportunity for onchain investors
In a related change, HBD, which is stored in a Hive savings account, receives a floating rate (the current rate is set based on the median of the block producers). This will create an attractive opportunity for cryptocurrency investors who want to get a decent ROI on a low volatility asset (i.e. a trustworthy stablecoin), but who also want to keep their assets in their own cryptocurrency wallets rather than in the care of a crypto exchange or one Bank.
Reward system for content curators improve content
An important aspect of Hive is that it is not only a decentralized financial book with one of the highest transaction throughputs, but also a network for the exchange and evaluation of information generated by the Hive community, with financial payments to both the creators of content as well as flow to the curators of content. This hard fork continues the trend of improving that aspect of Hive.
Average Hive curation rewards for voters who rate social media posts on Hive have typically resulted in a 6-15% return on staked HIVE (aka Hive Power). But AI-based voting bots typically have an advantage over human voters when competing for these rewards. Hardfork 25 simplifies the rules for distributing rewards to content curators and further streamlines the reward system by equating manual voters with bot-based voters. The new rules also remove the need to “rush to vote” in front of other voters in order to maximize curation rewards.
Improve and strengthen hive governance
First, some background information is okay …
Hive was originally created during a 51 percent attack that pooled control ownership to forcibly take over a then-public Steem blockchain and overthrow community-elected witnesses with centralized producers. These attacks are a major concern of DPoS protocols and occur when a unit has a majority of consensus. While Sybil attacks are generally addressed through the DPoS mechanism as it was originally designed, governance attacks that use stakes as a weapon are not. Prior to the hostile takeover of Steem, no clear case of a coordinated, time-sensitive takeover of a DPoS blockchain was successfully conducted. Such an attack would usually require the stake of large sums of money, creating a trail of indicators in the markets. In Steem’s case, the attack was carried out by three major exchanges that staked their clients’ funds that were already on the blockchain. This was 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 ever be completely eliminated as a threat. The first step in defending against future attacks was to put in place a 30-day delayed vote on governance to monitor for telltale signs of attack preparation. Votes for witnesses and DHF (funding) proposals will be postponed for 30 days after the “power-up,” also known as the stakeout of funds. Before these 30 days, the share is not taken into account in governance. However, this alone is not enough; To further secure and protect DPoS from anomalies while promoting a vibrant system of governance, an emphasis on stakeholder engagement is needed.
From hard fork 25, the process of votes is implemented. Each account must complete a governance transaction (vote on a witness or proposal, remove their votes, or change proxy status) annually in order for their votes to remain as they were cast. Accounts with stakes that are inactivated or blocked due to the loss or destruction of keys or the death of the owner naturally lose their impact on the consensus. The end result is a community that is active and aware of the indicators that would alert them of any signs of attack preparation during the 30 day voting delay.
Hive developers will continue to strengthen DPoS governance and make the protocol more resilient to malicious actors and attacks.
A full list of changes to Hardfork 25 can be found in our Gitlab repository.
Much has been said about environmental sustainability in cryptocurrencies. Does the Hive hard fork answer that?
Hive already has one of the most energy-efficient footprints of existing cryptocurrencies, especially in relation to its high transaction throughput. But we are constantly working on further improving the efficiency and thus the scalability of the Hive network, which naturally also reduces the resource requirements for operating the network.
Network efficiency is also very important to Hive’s goal of offering a highly decentralized network in which nodes can run on inexpensive hardware owned by individual community members without having to host nodes on expensive cloud-based servers.
Hive becomes more modular with every upgrade, so new Hive-based dApps can only be created with the basic services required. New dApps can reduce their initial resource footprint by using publicly available services provided by Hive volunteers until they reach a growth point where running their own server infrastructure is beneficial.
Since the Hive infrastructure is widely distributed around the world, individual operators can choose their data centers and service providers in an ethically correct manner. This not only helps us to 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.
It was pretty revealing. Before we close, would you like to share some of your social links?
Thanks for having us.
While we’re a large ecosystem, here are a few important links:
Hive blog: @hiveio
… And in the mainstream social media channels at: