Hive's three cryptocurrency tokens: Hive, Hive Power and Hive Backed Dollars [HBD].
Welcome Newcomers to Hive. I will be writing a few posts about some things in Hive that may not exist on other blockchains. First of these is the three forms of Hive.
The Hive cryptocurrency has three forms; Hive, Hive Power and Hive Backed Dollars.
These three entities have a relationship defined by smart contract and they are transformable into each other by a process executed by smart contract.
Thus the ecosystem is contains three tokens and is run by smart contracts.
Hive
Hive is a Cryptocurrency just like Bitcoin/Ethereum and Hive has it's very own blockchain or ledger.
The Hive blockchain a blockchain ledger where no one person has direct control over the network.
This means that the tokens are ”governed by code” and not an individual, corporation, government or bank.
Hive is tradeable on cryptocurrency exchanges like Binance.
Hive tokens are available on Cryptocurrency Exchanges like Bitrex or BInance, so the token is accessible to the general public, making it a freely tradeable token.
Hive Power is the second form of Hive.
Hive Power is the Hive Token locked up in a Smart Contract where it is not tradeable or saleable.
Emphasis on the word Power, Hive Power is symbolizing how much influence you have inside the Hive platform. Influence here is the same as value or amount of Hive you award with your upvote or approval vote on content posted here.
If you have a lot of HIve Power your upvotes will count more. An important point to make at this point is that your upvote awards Hive tokens from a pool of Hive called the Reward Pool which is regenerated daily. These Hive rewards don’t come from your wallet.
If you want to convert back from Hive Power to the base currency of Hive, it will be converted within 13 weekly conversions. These weekly payments are made directly to your HIve wallet.
Hive Backed Dollar or HBD this is the third form of Hive.
The Hive Backed Dollars is equivalent to one dollar US worth of Hive.
If you hold an HBD you can sell it on the internal market at any time for the market amount of Hive that one US Dollar buys.
The HIVE Dollar is essentially HIVE in the form of a pegged Currency.
HBD is also traded on popular exchanges.
This stability is remarkable in the Crypto Sphere where prices are never the same the next day, with unstable price fluctuation.
In fact, it eliminates some instability associated with many Cryptocurrencies, which most agree is the largest barrier for adoption of Bitcoin or or other Altcoins. Lastly, if you move the HBD in your wallet to the savings account you can earn 15% annual interest.