There is a lot of discussion, of late, about what Hive needs to do for it to proceed forward. Many feel that adding smart contract capabilities is the way to go. This would allow for much greater variance in the opportunities presented to developers on this blockchain.
Which brings up the question should it be at the base layer or a secondary one? Before we get to that, another important question is what about SMTs (Smart Media Tokens)?
Let us first start with this then proceed to the smart contract discussion.
Tokens
When it comes to smart contracts, most people are looking at the tokenization process. As we know, Hive already offers a couple tokens. We also see many tokens being created on Hive-Engine.
- Smart Media Tokens:
For those unaware, Smart Media Tokens (SMTs) are meant to operate on the base layer. They will be coded into the blockchain, thus requiring a hard fork. It will take consensus from the Witnesses for this to go through.
These tokens will be limited in scope. Essentially, they will mirror HIVE. They utilize Proof-of-Brain and that is it. Thus, the 6 or 8 functions that are available to HIVE will also be a part of each SMT.
Advantages: Inexpensive way to set up tokens. There will be a nominal fee to tokenize a community. There is also the added benefit that it will provide instant decentralization in terms of the validation. Since this is at the base layer, the transactions are run through the nodes just like HIVE. Thus, the established infrastructure will handle it.
Disadvantages: The limited flexibility. There is nothing else that can go into the tokens other than what is programmed at the blockchain level. Hence, there will be no NFTs or variance in programmable money. All tokens are HIVE clones.
- Hive-Engine Tokens:
We already has a system in place to create tokens. There are probably more than 100 created on this platform. This is a layer 2 solution so does not operate on the blockchain. Instead, the transactions are sent to Hive via custom JSON.
Advantages: Since it is already in operation, we see how it works. Many are already familiar with it. At the same time, all transactions on the platform are free. There is a fee to add or remove HIVE but when operating on there, there is no transaction cost.
Tokens are based upon smart contracts so they can be more than PoB. We already see NFTs appearing. The team is rolling out new smart contracts in an effort to add to the offering.
Disadvantages: The biggest one is that it is centralized. Hive-Engine operates under the control of one entity. All transactions are on private servers controlled by said entity. Unlike HIVE, which is validated on different nodes, operated by different people, this is the exact opposite. There is an additional URL (leodex.io) that could cushion the Hive-Engine URL getting shut down, but it is limited in what is can do.
There is also the cost. To set up a token, it cost a bit of money to get started. To be fair, in the developed world it is not onerous but could be prohibitive for many third world communities.
Smart Contracts
So far we have one in operation yet a couple in the works.
- Hive-Engine:
As was just mentioned, we are familiar with this one. They are rolling out more smart contract "templates" to make development of applications quicker and easier. The advantages and disadvantages need not be rehashed.
This is the developer who put together the smart contract layer that Hive-Engine is using. He is now off on his own project, looking to create another smart contract layer for Hive.
According to his latest post, this is more of a "virtual machine". There is not too much to comment about since the post is technical in detail, so perhaps some coders could further elaborate on the concept and where it stands in the comment section.
Just as a reference, Buterin has often referred to Ethereum as being a "virtual computer" for the world. Therefore, we could see this modeling that idea.
Here is the post:
@harpagon/the-smartscript-virtual-machine-is-now-available
According to previous posts, this "machine" will be what powers the smart contract layer that he is building for Hive. It appears the software is such that anyone can run it, thus offering the decentralized aspect from the start. More clarification on this one would certainly be helpful.
Throughout numerous posts over the last month or two, along with comments made on one of the developer meetings, Blocktrades put forth his idea for smart contracts on Hive.
Basically he feels a server based system is the best. This could be set up in such a way using a number of servers to provide the decentralized aspect that is wanted. From the sounds of it, this would be a solution that could be put together rather quickly.
One drawback to this is fees. Servers obviously cost money and a fee of some form would be required. Since there is CPU utilized, a proposed solution would be to airdrop CPU tokens on Hive holders. This would provide them the ability to operate on the smart contract servers.
Some might question whether this would destroy the "fee-less" aspect to Hive? No it would not.
Think of this as Uniswap and Ethereum. When using Uniswap, there is a nominal fee tied to that application. Once that is completed, there is also a fee for using Ethereum which, depending upon the usage, could be more than just nominal.
With this system, there would be a "fee" in the form requiring CPU. This is what allows for operation on that platform. Anything sent down to Hive would not require anything more what exists now. As long as someone has some Resource Credits (via Hive Power), the transaction will post to the blockchain.
So which is the best and how should we approach this?
That is what the discussion needs to be about. From my point of view, for the smart contract layer, the more the merrier. There is no harm with different teams setting up their own contracts. Certainly there will be differences among each. In the end, providing developers with more options is a good thing.
This brings us to tokens. Should they only be at the layer 2? Personally, I feel that going ahead with SMTs is a good idea. Sure, some will say there is redundancy. However, SMTs will be inexpensive for communities to set up and will be tied with the original idea of "tokenizing the web". Many online sites do not require anything more than a SMT, thus having a seamless way to provide that makes sense.
Another advantage is the blockchain has a history. SMTs could inspire more confidence since they will be running on something that is nearing 5 years of operation. Anyone can look back through the logs and see how the blockchain performed during that entire time.
That said, the drawback, as noted, is that SMTs have to go through a hard fork. For this reason, based upon the scheduled time, we are looking at a minimum of another 6 months before that can even be entertained as coming to life. Therefore, we need to have some other possibilities going. This is where the smart contract layers are required.
Decentralized smart contracts is what Hive is missing along with other ways to create tokens.
A number of variables to consider but this appears to be the main points of conversation.
What does everything think? It is time to start voicing some of our ideas.
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