The Future Of Hive Transactions

We got a recent report detailing the number of transactions on Hive.

It was fairly impressive to see what Hive was able to achieve. Few would imagine that we were pushing through near 1 billion transactions during 2022. Yet, that is exactly what we did.

A total of 967M transactions made on the Hive blockchain in 2022. Close to 1B.

When we step back and view things from that perspective, we can see where this is a stunning figure. Nevertheless, it is a drop in the bucket, showing the potential of Hive.

Much of the discussion within blockchain is based upon scaling. From what we can deduce, this is nothing something that Hive faces. The potential throughput of the blockchain is much higher. We can handle at least 20x, if not greater.

For this reason, it is important to look at the future of Hive transactions and where it might come from.

Billions Of Transactions Made

The most logical choice is to focus upon social media. This makes sense since we know the numbers there are incredible.

A quick web search reveals there are roughly 500 million Tweets made each day. That equates to about 6 months on Hive. This figure doesn't include upvotes, retweets, and things such as Spaces. As we can see, the numbers get insane.

Nevertheless, there is value in transactions. That is what blockchains do. Obviously, the more activity that is taking place, the greater the value should be. Of course, not all transactions are created equal.

Remaining in social media, on Facebook, there are 4.5 billion likes per day. On Instagram, there are 95 million photos shared each day. YouTube averages 30,000 hours of video uploaded each hour, or 720K hours per day.

Certainly, it is smart for Hive to expand its social media offerings to tap into this market. The numbers are absolutely outrageous.

Of course, to even get a fraction of this, we need to see the user numbers grow. Here is the catch 22. To get the network effect, we need to kick off the network effect. This means improving the numbers in whatever ways possible.

Sadly, when we frame things in this manner, the numbers on Hive don't carry the same meaning as before.

Higher Value Transactions

If we really want to make Hive stand out, the focus could be upon becoming a valuable payment network. Here we see the numbers are also rather large. The key difference is the monetary value.

While we can derive a value on an upvote or an Instagram photo shared, there is nothing as valuable as the transfer of money. After all, this was the main idea behind blockchain and cryptocurrency. Bitcoin, the network, was formed to be able to transfer value without any financial intermediary. All blockchains can do this.

If we look at this market, we see these numbers.

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Source

In 2021, there were 581 billion payments made globally. As we can see, these were dominated by three companies, with Visa leading the way. Unlike social media, there was a monetary value to every one of these. The total amount is payments made is into the trillions.

According to McKinsey, payment processors made $1.9 trillion in revenues for processing all these transactions.

$1.9 trillion.

Here is where Hive can enter. Did you ever hear the phrase fast and feeless? Whatever the amount of payments processed on Hive, the total transaction fees would equate to zero.

Zero fees when processing trillions of dollars worth of payments.

What is that worth to humanity?

While switching a social media application might not be high on everyone's list, saving money tends to be. Obviously, with a company like Visa, we are talking about a global digital system that is in most countries around the world.

Ironically, Hive is a global digital network that is in any country where one can access the Internet. Hence, if one is online, Hive is accessible. This means if that individual has his or her private key, financial transactions can take place.

All of this done without payment processor or banks.

Hive's Stablecoin

Imagine if Hive did 1 billion transactions per year simply using its stablecoin. This would be a similar number to what is taking place right now but higher quality transfers. Of course, the total numbers would be insane since the majority would still be social media or gaming related.

This is something that Hive has over everyone else. The counterparty risk with the Hive Backed Dollar (HBD) is the blockchain itself. There is no company behind it.

Therefore, when we start to rip this apart we see:

  • no company controlling the digital payment network
  • no bank tied to merchant or individual accounts
  • no company behind the stablecoin

Are we starting to see the possibilities?

How many other cryptocurrency networks can offer this? While most can operate with their base layer coin, that tends to suffer from volatility, making it less effective for payments.

In Conclusion

Hive has a tremendous opportunity with payments. While the advancement of social media is a primary focus, this is a lead in to the financial aspects of the ecosystem. As we noted in this article, this is a feeder system into the bootstrapping of a currency.

Elon Musk paid $44 billion for Twitter, one of the largest social media companies we have in Web 2.0. Yet, the present market cap of PayPal, a payment processor, is $96 billion.

It is easy to see where the value lies.


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Possibilities that comes with hive is superb because hive has the power to become the best web3 social media and also the best payment system. The future is bright

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We just have to organise the future properly.

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By combining finance and social media hive blockchain will surprised people like Elon musk who are trying to do the same in Centralized way

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It is crazy that his centralised effort has not made things work. I don't think he is very focused on it.

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Hive is gem, that’s for sure! We just need to convince the masses!

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Did you ever hear the phrase fast and feeless?

Last time I heard it was on Hive associated with its transaction.

Hive's zero transaction fees put it at an advantage over other blockchains out there, it is one of the many potentials it has that can be enhanced by what is built on it.

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The feeless aspect of hive is one of the most interesting aspect of hive. Huge transactions are being made and no fee compared to how banking systems indirectly/directly charge for almost every transaction made. This has made me see that it is better one owns an asset here on hive as it will definitely stand the test of time.

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For tapping in the payment system you first have to make HBD and HIVE accepted for payments and not payments that gets processed by mastercard or visa. And that is something like step number 20+ . But you are right most of the infrastructure is here. The social media aspects can play the role of getting the people to know and trust Hive.

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It's crazy that Hive has not existed for that long and we already have this much going for ourselves.

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Hive is definitely poised to catch on when it reaches the masses as the capabilities it offers isn't found anywhere else. A good chunk of transaction are on social media and finance. Hive has the capabilities to be a major player on both.

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We need to make the best of what we have and even though it will take time, I think we have the chance to make it work. A lot of why we seem to be falling apart is because we lack organisation.

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Indeed. That's one of the main flaws of decentralization. Flaw in a sense that it impedes on rapid progress.

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I agree. But the beauty is that this was the initial design and you can go fast alone but you don't get very far alone. So I may whale about it sometimes but I don't think it bad

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Indeed. The dilemma between going alone or going with a team. I think in some way it allows us to combine them and pursue both.

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Yeah, there are some teams forming on Hive too, working remotely for one mission.

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Wow, that is crazy to have 1 Billion transactions on the Hive blockchain. I think we still don't realize how blessed we are here and take most of things for granted. We are steadily building up and evolving.

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I agree with this 100%. We need to make the best of what we have.

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Did HIVE solve the trilemma that Vitalik couldn’t?

What’s the catch while it all sound very good?

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Muchas gracias por la información, es bueno estar informado de todo cuanto se refiriere a Hive, y que poco a poco llegue a otras comunidades lejanas, así conocer mas de otras culturas , muchas gracias por este tipo de post informativos y actualizados. 👍

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(Edited)

Obviously, the more activity that is taking place, the greater the value should be.

Even activity such as upvotes and comments?

Did you ever hear the phrase fast and feeless? Whatever the amount of payments processed on Hive, the total transaction fees would equate to zero.

And that's where Hive stands out. I think the speed and feeless nature of Hive contribute a lot to the volume of activity on the chain, though not as big compared to others. If there is a fee for every transaction including the micro, I think the number of chain activities will be smaller.

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In my opinion, upvotes and comments are a very important part of the activities we see on Hive.

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(Edited)

Yes, me too. That's the easiest thing to do.

!BBH

!CTP

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The development we need on Hive should be partly directed towards this. I like how there are no transaction costs for doing things that are truly marvellous. For example, I have been gathering money in an account for my dad, separate from the money I own that just does so automatically.

Imagine when we start having blogs and other institutions with their workers show up daily and they receive their weekly HBD pay through recurrent transfers. Content creators have workers, it would be so amazing.

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What if we did some sort of competition to stress test the blockchain?

Maybe use some DHF funds for some random prizes.

Might create some buzz in the process.

It would be worthwhile being able to definitively demonstrate how many transactions we can handle currently, with zero changes.

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This is exciting for those of us who were here from the beginning (right after the fork from that other chain of which we don't speak.) Patience and participation pay off. !CTP

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