Is HBD The Digital Dollar of the Future?
Crypto Currency is a rapidly changing landscape with many rise and falls along the way and the search for a reliable, safe and trusted digital dollar has been long sort.
Currently there is no real decentralised digital dollar on the market place with both USDC and Tether centralised and coming under the watchful eye of regulators. Not that this is a bad thing but this does bring about some common questions mainly that the digital USD's are company owned. So that means someone profits and those profits are shared amongst the community which is the backbone of Blockchain technology.
There is also BUSD another stable coin offered by Binance but with all the recent issues surrounding the centralised exchange and many global regulators honing in on them, there is quite a lot of uncertainty and market fear.
Since the collapse of Terra (Luna) Network and it's decentralised stable coin there is only one true stable coin on offer that no one has control over and is completely owned and operated by the community, not one person or people.
And that is the coin, if you are reading this blog you will know a lot about, Hive Backed Dollar (HBD)
What is Hive Backed Dollar (HBD)?
HBD is native to the Hive Blockchain what started off as a decentralised social media platform where account holders could be paid Hive and HBD for blogging on the platform, but has since expanded to gaming, NFTs and broader community orientated groups and interests.
It is a success in it's own right and there is nothing else quite like it or as successful out there in the Web 3.0 world and if you're looking for actual Web 3.0 projects and protocols than you can't go passed Hive.
Hive has it's own stable coin called HBD and is maintained by the HBD Stabilizer which is a bot that trades Hive and HBD on Hive's internal exchange to ensure the price remains pegged.
Success of the HBD Stabilizer
Since the bot's inception in 2021 HBD has maintained a close peg to 1 US Dollar a struggle the chain previously had where people could undermine the pegs integrity and cause it to spiral. But significant investment in the bot has ensured that HBD has continued to remain within 1 USD, a great achievement by the development team.
By maintaining a value pegged to 1 USD it minimises the volatility that is often seen with other digital tokens and creating a more reliable store of value. Hive itself has also implemented a savings account for all Hive users which enables people to earn an APR of 20%. The highest on offer and first initially developed the combat against Terra's UST.
Image Source Hive Wallet
Security
A core advantage of HBD savings account that protects it from death spirals is that there is a 3 day waiting period to withdraw meaning there is a delay in bank run activity. Also this gives Stabilizer time to get things under control so by the time things do get hairy, it's probably already sorted and people are less likely to dump the token on the open market or if they do it is at par.
The other thing that sets HBD above all others is that there are no transaction fees on the Hive Blockchain meaning that transactions are fast and free. Unlike many other Blockchains where people may lose large amounts of value simply by undertaking a simple transaction, none of that will happen on Hive.
Hive's system operates on a resource credits (RC) scheme and the more resource credits you have the more transactions and activities you can participate in on the Hive Blockchain.
Hive has the Blue Print for the Future
Out of all the stable coins currently on offer HBD stands out as a true contender for future use cases that align with what Blockchain technology is all about. It is immutable, unable to be censored and has a broad range of use cases with no fees.
With billions of small businesses across the globe many can not afford the fees currently set by Blockchains of flavor today, further impacted by congestion it can cause small businesses many headaches and lost revenue not only on price volatility but also fees alone and wait times.
Hive is currently best place to lead the Web 3 integration and the more people that learn about HBD and it's capabilities we will continue to see the token power much more of the decentralised world.
What are your thoughts on HBD and the Future? Can you see it as a main payment method across the world?
image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.