Hey friend. Welcome to my blog. It has been a great week so far. Trust you're making the most out of yours. I would like to share with you some acquired knowledge on the workings of Hive engine tokens. I have been doing more research about some secondary tokens and considering making some investments. This is not even a piece of financial advice; just some insight and shared understanding. You are welcome to do your research and put your money where your mouth is. Let’s dive in.
What are second layer tokens?
A blockchain platform utilizes tokenization which allows the creation and exchange of digital assets between users. There is usually the main token and sub tokens sustained by the main. Secondary engine tokens are subsidiary tokens founded on a blockchain distinct from the primary token of the blockchain. They are different from the native digital asset of the network and not a core part of the system that powers the operation. However, they rely on the stability and functionality of the native token to work.
The use of tokens as a blockchain resource and utility is only feasible due the use of smart contracts. Smart contracts are a series of programmable commands which when met, triggers the execution of the issued command. This fosters the ability of users to easily transact with these tokens without any third party huddles.
There are different types of secondary tokens that exist on different blockchains but the focus of this conversation are the Hive Engine Tokens.
Hive Engine Tokens
Hive is the 21st-century financial system that rewards its contributors on a multi-faceted level. Utilizing the layer 2 tokens is one of the ways to earn on Hive and receive rewards for our daily contribution to the running of the network. Hive Engine Tokens are the other digital assets that exist on the Hive blockchain. While Hive has $Hive as its native token for exchange, other tokens such as Leo, Proofofbrain LGN,etc also exist. Because Hive operates an open source software, we have numerous applications and communities running on the platform. Most of these applications are tokenized to create utility and encourage users to interact with and contribute to the success of the project. Holding some of these tokens gives its holder access to features within a specific network or community.
Benefits of Hive engine Tokens
Incentivize Users: this is one of the basic benefits of Layer two tokens to the hive ecosystem. Communities and projects built on hive, with the use of incentives encourages users to interact contribute, and invest time and resources in these projects.
Scalability: The blockchain is a vast community with tons of transactions occurring daily. The creation of different Hive Engine tokens helps to bring a balance in ensuring that the system continues to grow and meet the voluminous demands issued.
Tokenization of communities: Communities implore the use of tokens to develop their distinctive characteristics, provide utility and build representation. For instance, the proof of brain token represents the Proof of brain community, the Leo token represents the Leo Finance community etc.
How To Accumulate Hive Engine Tokens
There are different ways of accumulating second layer tokens. The easiest way is the use of community tags in the publication of long form posts. Using the specific community tags and receiving an upvote by someone who holds said tokens secures you some of it in your engine wallet.
Another means is investing in the tokens directly. Some second layers tokens are promising, sustainable, and worth investing some hive dollars in. The Leo token for instance, is a great example of a layer two tokens worthy of investment. You can invest time by creating quality contents in hope for curation which will earn you some Leo tokens, or you take some hive nickels and buy them. You can either stake these tokens or hold them. The #LPUD is a general day for staking you preferred quantity of Leo tokens, usually the fifteenth of every month.
Conclusion
Hive Engine tokens are crucial to the well being of the hive ecosystem; we must not neglect them. They deserve as much attention as we put in the native token of the community. This is a good time to check out some tokens you deem worthy and invest in them. A good hiver includes Hive engine tokens in their earning strategy by using the appropriate tags and contributing to the right communities. These tokens when accumulated can either be staked, converted to hive or used to purchase other tokens. A prime example of this is using my earnings in other second layer tokens to buy Leo tokens for powering up or holding.
Hive a gift the continues to cater to the sustenance of the blockchain and its users. It is filled with immense possibilities which we continue to tap into in different ways. Take your time to know which appeals to you and go for them. As always, we keep an open mind as we hope for greater outcomes. Good luck!
Thank you so much for reading. ❤️❤️
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