The bear market is a time for building. It is extremely important that projects take this time to expand their offering. While these markets can be tough, it is where winners and losers are determined.
We saw the clearing out of hype. In fact, most everything is FUD these days. However, sentiment is a tricky thing and can turn on a dime. We might not know when the bull will start running yet we do know he will get going at some point.
Those that build now will be in better position when that occurs.
We are a little over a week from the next hard fork. This is going to really enhance the infrastructure of Hive. Here is where the focus is vital. Those ecosystems that use the bear to build out the base technology are going to do well.
That said, there is something else that is taking place for Hive that is crucial. This came from a proposal by the SpkNetwork which was funded by the community. It targets the second layer yet also is operating in a decentralized manner.
For this reason, we will go through what this team is doing and how it is important to Hive.
Decentralized Node System
What is being built?
This is something that many could be wondering. If we have to sum it up in a concise thought it would he as such: A decentralized node system.
We recently discussed how layer 2 solutions will be a combination of centralized along with decentralized entities. Here is an example of a team that is targeting the second layer for decentralization.
Most are aware that the SpkNetwork team also is responsible for 3Speak. The logical conclusion is we are looking at a video platform being constructed. That aligns with the focus of the team, based upon the information they put out.
Like most things with technology, the original intent ends up being far short of what the ultimate capabilities.
That is why the summation is referring to the infrastructure. Once there is a decentralized node system in place, what is developed on it can vary. Certainly video is one use case, an important one at that. Hive handles text, providing permissionless and immutability. With video, however, it is a different story.
This is the main focus of what this infrastructure seeks to change. By creating decentralized nodes, providing the different services video hosting requires, we can see how this is carried to the second layer.
Already, one can conclude how this will be a major step forward.
Yet, it is only a step. There is a lot more that can be done.
Financial Network
The next area that is being explored is for the expansion into the financial arena. Once there is a decentralized node system in place, development can expand in many different directions.
Here is where the innovation can help to separate Hive from most of what is out there.
There is no doubt that when discussing financial matters, we are prancing right into the line of fire from the alphabet agencies. It is where the true decentralization needs to take place.
When that is achieved, however, all bets are off. With a global network of nodes operating independently of each other, we see the ability to construct whatever is desired without fear of the establishment. The key idea is true decentralization is almost impossible to counter.
Thus, if video content is immutable, ensuring freedom of speech and ideas, then financial activities also will enjoy the same benefits. This is a blow to the established system but that isn't our concern.
Once the infrastructure is completed, we can see this project expanding greatly. We spoke in the past of Hive Bonds. This is just scratching the surface. The opportunity is there to generate many different kinds of synthetic assets along with other financial products. In short, we become Wall Street.
Of course, since we are the ones developing it, we can insert the Hive Backed Dollar (HBD), or some derivative of it, as the central token that is utilized. This would instantly expand the use case of HBD.
The vital thing to understand is none of this is presently possible within the Hive ecosystem. We do not have the infrastructure in place. It is why some projects are accessing other blockchains to provide the services being described here.
SpkNetwork is looking to alleviate that. Infrastructure is not exciting or sexy, yet it is crucial to erecting that which is.
Getting It Right
Hive seems to operate at a slower pace than most other networks out there. We see the hype associated with other projects and get envious. Nevertheless, as recent events are showing, if not carefully constructed, things could get very hairy.
We are seeing the time taken to get things right. While this slows things down, we are progressing without venture capital funding. By setting up infrastructure that is decentralized along with the ability to scale, we are cutting off a lot of headaches before they even start.
These are shark infested waters we are swimming in. Some major entities can have their power base disrupted by cryptocurrency and decentralized finance. For this reason, they are going to muster up all the forces they can to try and counteract it. Here is where we must be ready.
Over the next couple years, we are going to see a lot of projects succumb to the pressure. Since they ultimately are centralized, someone will be targeted. Once that happens, the weight of these organizations will be felt. It is a heavy burden about to be dropped on the heads of many.
Hive is looking to sidestep that. By flying under the radar during the building stage, we can take the time to get it right. Decentralization is a core value to many on here and is being shown in many ways as things progress forward.
Imagine what Hive will be like with full social media applications such as blogging, video, NFTs, and microblogging along with a financial network that can integrate DeFi into all that we do.
To me, that is the future of Hive. It is something that we will keep discussing to help push these ideas forward.
Let us know what your thoughts are in the comment section below.
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