Cryptocurrencies known as stablecoins offer stability in volatile markets. Stablecoins like DAI and USDT are widely recognized as the leading stablecoins in today’s cryptocurrency market, but there is also another stablecoin that does not seem to be recognized as much as it should be — HBD.
Hive Backed Dollar or “HBD” is the Hive Blockchain’s native stablecoin. HBD has a very unique and innovative model that many in the crypto space haven’t yet realized the potential of. HBD has a lot of great technology and offers a lot of great functionality, however, at this time the majority of users in the crypto world simply don’t understand how much potential HBD has.
About HBD
HBD stands for Hive Backed Dollar and is a decentralized stablecoin that has been built on the Hive Blockchain. The primary purpose of HBD is to maintain a 1-to-1 ratio with the dollar, while still being fully integrated into the Hive ecosystem.
HBD is unique because it is a decentralized stablecoin and runs on a decentralised network (e.g., HIVE Blockchain). So you will not have to worry about HBD’s regulations, as it is decentralized like other crypto assets and is not dependent on any company. Users are able to generate HBD through the use of HIVE, and then convert it back into HIVE, when needed to meet their liquidity needs.
the Hive ecosystem that benefits content creators and users alike.
Key Benefits of HBD
- Decentralised
The decentralisation of HBD is its biggest advantage over many other popular stablecoins that operate from a centre-controlled reserve. HBD operates according to the rules of blockchain technology and smart contracts, which adds a layer of transparency and resistance to censorship that other stablecoins do not have. - Earn Interest on Savings
Another unique aspect of HBD is that it allows owners of HBD to earn an interest rate on their savings through the Hive savings platform. This is a feature that most stablecoins do not offer out of the box. For long-term holders of HBD, this can become a passive income opportunity as well. - Fast & Free Transactions
The Hive blockchain is also known for providing fast and free transaction processing. Sending HBD from one user to another, even within the same account, takes less than 5 seconds and there are no fees charged for making those transactions. HBD is ideal for use in day-to-day payments, or for making tips or micro-payment type transactions. Other blockchain networks typically charge transaction fees to users to provide transaction processing. - Part of the Hive Ecosystem
HBD is a key part of the Hive Ecosystem. Platforms such as Hive.blog, LeoFinance and other decentralised applications utilise Hive and HBD for the purpose of paying and rewarding users. Content creators are able to earn HBD in a direct manner by blogging, curating and participating in communities. HBD is not only a stablecoin, but also a component of the Hive Ecosystem that will provide direct benefits to both users and content creators.
HBD Compared to Other Stablecoins
HBD Compared to USDT
According to market share, Tether (USDT) is the most traded stablecoin on cryptocurrency exchanges. Its centralized company controls the reserve assets necessary to create and issue USDT. As a result, users of USDT must rely on the credibility of the issuing company to ensure those reserve assets exist and that the company is solvent.
In contrast, HBD operates on blockchain technology and does not rely on reserve assets held in trust by a third-party entity.
HBD Compared to DAI
DAI is another example of a decentralized stablecoin that is issued by the MakerDAO Protocol. While DAI is also a decentralized stablecoin, it relies heavily on collateral and uses very complex systems to operate correctly.
In comparison with DAI, HBD is a simpler token created using the Hive Protocol and has a much easier onboarding process for individuals who already use Hive-enabled applications.
Why HBD Is Underappreciated
There are several reasons that HBD remains underappreciated in the market today.
The majority of cryptocurrency investors are not familiar with the Hive Ecosystem.
HBD and Hive both have very little marketing compared to much larger cryptocurrency projects.
Most people in the cryptocurrency community tend to focus solely on the largest stablecoins by market cap.
That being said, individuals who use the Hive ecosystem on a regular basis know how powerful and convenient HBD can be.
What Will HBD Look Like In The Future
Now that the world is focused on Web3 digital assets & the decentralized social media space, the integration of stablecoin with blockchain communities may lead us to a much more valuable future.
If the Hive ecosystem continues its expansion, then HBD will receive greater adoption, as a practical asset (stable coin) for both creators of content as well as traders and everyday users alike!
The many advantages of HBD: decentralization, ability to earn interest, and speed of transactions; as such, stand firmly for future growth & expansion.
In Closing
While HBD may not be very well known currently in comparison to other stable coins; the unique attributes of HBD make it a unique and powerful force within the crypto space. With the increasing number of decentralized platforms & Web3 communities, we believe HBD will receive a lot more consumer recognition in the future.
For those individuals who have already committed to Hive; HBD is much more than just another stablecoin — it is a method for earning, saving, and engaging in a decentralized economy.