Smart Contracts Will Be A Game Changer For Hive

Hive is a very powerful blockchain. It has some of the best technology out there. Anyone who transferred money on another network after using Hive, let's say it is like watching pain dry. It is painfully slow. With 3 second settlement time, including one block irreversibility, we are talking about a massive speed difference.

Then we have the social media capabilities. Since the future is the blending of social media and finance, this positions it perfectly to where things are going. Those two industries will overlap to the point where finance is throughout all social media platforms (the ones left standing at least).

There is something missing from the ecosystem. For years, we discussed the idea of a robust smart contract platform. Basically, development on Hive is hindered since there are no smart contracts. This severely restricts what can be coded.

Many found workarounds by integrating contracts from other networks. This is a solution yet does not really provide a firm foundation going forward.

If Hive is going to be successful, it does require smart contract capabilities tied to the network. Fortunately, this is being developed on some sidechains and the Hive Application Framework (HAF).

Parity With Other Networks

The implementation of smart contracts will put Hive on parity with other networks. This is something that is crucial to internalize.

Whatever network you are looking at, from this perspective, Hive will be equal. It does not mean we are referring to traffic, money on the network, or market capitalization. Rather, we are dealing from a feature perspective.

Having smart contracts will allow us to literally say, "anything you can build on ____________, you can build on Hive".

This is a crucial step forward. When this occurs, the major gap between Hive and many other networks, especially the EVMs, closes. In fact, one could make the case that Hive is actually offering a better option since the contracts aren't base layer. Of course, that is a matter of dispute, contingent upon the perspective one has.

Either way, from a technical perspective, this potentially brings a feature-set to Hive that is presently missing. Suddenly, people will not only be able to spin up tokens but also exchanges (if they have the technical ability). It is in this regard where DEX can multiply. Liquidity is still an issue but the ability to create them will not be.

The same is true for non-fungible tokens (NFTs). We see the success that a network like WAX enjoys. A lot of that will be available to people on Hive. Won't it be nice to incorporate NFTs into the business models of some of the applications and games?

Effect On Money

I hesitate to talk about market price since that should not be the main focus. Also, there is truly no way to predict how things will react.

However, if we focus upon value, this adds large amounts to Hive. We can easily see the potential of what can be created skyrocket. This needs to be factored into the value of the ecosystem.

Of course, markets often ignore value. That said, over time, it should align somewhat.

More importantly, having smart contracts means that we can start the process of massive "money creation". Building services, a key requirement for economies, will be possible. This should enhance the economic opportunities that Hive presents. At the same time, we can engage in money creation, similar to what other networks are doing. If this is coupled with networks effects associated with those communities, we can see their values grow.

We end up seeing a situation that compounds. This means the value of the different financial assets is seeing appreciation, something that can be utilized for more growth. Here is where the development of financial services would offer this to the user base (read population of the network)

One of the reasons the EVMs are so popular is because they have this ability. Tokenization allows for the capturing of value, especially at the social layer. However, we cannot omit basic financial services from the equation.

So far, this is exactly what Hive did. Due to the limitations, we are seeing the inability to develop this. Once that is resolved, the exponential nature of innovation, technology, and finance can take over.

Even without outside capital, this will offer greater financial potential to each person who is already resident on Hive. This results in the money growing naturally.

Of course, there is another layer to this equation that smart contracts offer. We are in the realm of greater returns due to the lack of financial intermediaries. Smart contracts provide for autonomous operations. Since they can be duplicated, this offers the ability to conduct these transactions with zero-to-minimal fees. Also, we are usually dealing with two (perhaps three) wallets for the entire process.

This is a radical difference from the present system. Our monetary and financial system has so many entities involved in the process, it is mind-blowing. Just look at the networks involved, each taking a small piece of the action.

Hive can eliminate this by removing much of the cost from the process. Not only is the lack of human intervention cheaper, but we are not dealing with for-profit entities every step of the way. The blockchain, as an example, simply is coded and runs. It does not have to report quarterly the revenues it generates.

Your bank, on the other hand, does.

In Conclusion

We are looking at the infrastructure rolling out that can offer smart contracts to developers associated with Hive. They are going to roll out at varying points over the next year. Early contracts will likely be driven by the development teams until others gain the knowledge to produce them on their own. This is where the situation can massive expand.

One are of exponentiality to watch is with these contracts. As project teams start developing their own or amending other ones. the number expands rapidly. The hardest part, aside from creating the infrastructure, is to start with the first few. After that, developers can start the process of shortcutting their projects by taking existing code and amending to fit their needs. This massive accelerates things.

Like anything, the early stages is the most difficult. Each activity has the least impact. However, once the ball is rolling, things can take off.

It is a game changer for Hive.

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