Hive's Main Goal: Develop Trust

in LeoFinance3 years ago

Many over complicate the monetary and financial system. For all the theories as to why it works, or does not, they all seem to overlook the most basic essence of the discussion.

When it comes to these matters, there is one thing that keeps it all together: trust.

No matter what we are dealing with, if the trust is gone, the system collapses. Throughout history we see different ways systems were designed to try and instill that. In some instances they were highly successful, others not so much.

Consider the point of insurance. This is a mechanism that provides trust. People feel safe because there is something backing it.

That works well until the trust is destroyed. Look at the Great Financial Crisis. That was caused by a run on collateral by the world's financial institutions. Suddenly, the trust in what was promoted as solid collateral, mortgage backed securities, came into question. Of course, there was insurance in the form of another derivative. Yet, the system broke down when the insurer, AIG, was unable to backstop the losses.

It all worked well until it didn't.

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Blockchain Is About Trust

The idea behind blockchain is that it brings another level of trust to the table. We see how valuable a permission-less, transparent ledger can be. All transactions are open and cannot be hidden.

Blockchains that are decentralized also cannot be altered. This also provides a great level of trust. We know that once a block is validated and accepted across the network, it is immutable. We can trust the data that is there.

With this foundation, the idea is to build upon it. Once we have the base layer of trust, we can see how other opportunities open up. By tying into a trusted ledger, the hope is the application that is pulling the data can convey a similar level of confidence.

Of course, as we see, that is not guaranteed. Confidence can break down as markets get wind of issues. Since we are in the early stages of development, the markets are going to test everything that is out there.

For this reason, those projects that survive have to overcome whatever is thrown at it. Bitcoin was attacked for years and is still standing. That is the goal of all other projects.

Trust is very fragile as we see. Therefore, we all have to take the steps to keep building it.

Hive's Main Focus

Everyone wants instant success. The story of LUNA and UST really got people salivating. There is good reason. If billions of dollars suddenly show up, people get excited. Those who are not involved obviously want a piece of that.

That said, as we saw, it can leave quickly. Billions can be eradicated in a day or two. The challenge, above the monetary and financial impact, is whether trust can be restored. Like any relationship, once it is dinged, it is hard to get back.

Sometimes flying under the radar, out of the eyes of the masses, is of benefit. Hive is doing that much to the disappointment of many people. However, if we step back, we can see how this is advantageous. In short, it allows us to shore up our defenses.

When there is a community of people who not only trust the system, but are also trustworthy themselves, that is a huge step forward. We know that decentralization and distribution brings with it a certain amount of trust. Hive seems to be working in this direction.

Nevertheless, that does not mean all is done. Continued action must be taken to keep pushing the different levels of security forward. It is these integrations that help to maintain trust.

Creating a system that has levels of trustworthiness is of great help. However, as we see, there is no way to code that completely. Therefore, at some point, it comes down to people. There is a certain human element to it that has to be fostered. Many achieve this with a cult of personality ala Elon Musk or Jeff Bezos. People trust the company because they believe in their ability to produce.

Hive does not have that. While some of the crypto world does, we realize one slip up and it all can be lost. This is a point of vulnerability.

Incremental Steps

Hive's progress is like growing the holdings in one's wallet. Each day is another opportunity to expand things a bit more. We look to daily growth, small in nature. This is what ends up leading to long-term success.

We all heard stories about lottery winners who were broke in 5 years. They did not experience incremental steps but, rather, a huge windfall. The challenge here is that they could not handle it.

Hive needs to ensure it can handle things. By moving incrementally, we are able to keep taking measures to continually defend the chain. All projects should do this. Unfortunately, points of vulnerability can come up at any time.

One thing we do see on Hive is the steps taken to do one important thing: buy time. Often, when the wheels start coming off, everything appears to accelerate. This is certainly true with markets. On Hive, we see some measures designed to slow things down a bit. This will allow the Witnesses to step in and make some decisions. It is hard to do when the world is on fire.

Slow growth can be frustrating. Nevertheless, unlike the lottery winner, as our holdings grow, we are better able to handle that. There was a time in my life where losing $10K in a day would overwhelmed me. Now, that is an average market pullback. It is a good bet that many are experiencing something similar as their ability to manage their holdings expands.

The same applies to the entire ecosystem. Can we handle what is thrown at us? Are we getting stronger over time?

Take the attack from Justin Sun. If that happened today, we are much better prepared for it. Obviously, the ninja-mine is no longer a threat. We also implemented the 30 day power up window before governance goes into effect. However, there is a third consideration: the members of the community have more resources than they did a few years ago. Thus, collectively, we likely could mount a better defense.

That did not happen overnight. It also allows us to trust what is being developed because there are a bunch of people we know are all in with this. We are not alone. Many people are fully committed to what is being created.

All of this plays into resiliency. As we expand in this fashion, we are able to implement the pieces that enables the ecosystem to weather attacks. LUNA certain has the bullseye for the moment. That said, it will be on someone else down the road.

The question is whether Hive will be able to stand up to it when it is on us. That is something we have to keep preparing for.

And that is what provides trust. Going through these experiences and coming out the other side only makes us stronger.

Give us your thoughts. How much trust do you have with this ecosystem and what are some things we can do to enhance it?


If you found this article informative, please give an upvote and rehive.

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One of the original selling points of Bitcoin was that it was trustless, which really appealed to me. The crypto space as a whole seems to have drifted away from that especially recently and we are seeing the effects of that in the market. My 2¢

That is true, no longer is decentralization considered when tapping into projects all that is considered is the monetary gains. We are seeing the outcome of that when you throw away the fundamentals of what a real decentralized blockchain entails.

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The attack vectors are being exposed.

Here is where we have an advantage since we removed a few of the centralized vulnerabilities.

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I see we are further spreading out with opportunity for anyone interested in setting up nodes for SPK Network and Splinterlands, this futher decentralizes things on here, we just have to keep replicating the process to make it impossible to be targeted.

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All of that spread out while also providing more utility. That is essential. We are building out things that tie in to the blockchain.

As that expands we see more trust evolving. Time helps in this one.

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And the beauty of it is is getting rewards to partake in further decentralization of the project(s)

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The Proof of Brain aspect to Hive is very valuable. It helps with the distribution.

So yes by getting rewards we are helping to alter the distribution of the HP, changing the influence.

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VC and centralization have moved things in that direction so I agree with you.

With Hive, we actually went the other way because of the elimination of the pre-mine as a threat. Now we just need to keep moving things further out.

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Trust plays a very important role in any investment. Why I am here on Hive being active for some time, coz I trust Hive.

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That is true and do you know what, your activity is helping to establish more trust in Hive. As we have greater amount of activity, and rewards being spread, that helps to distribute things even more.

Distribution and decentralization are trust builders in my view.

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You are right...

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Glad you agree and see that.

So many overlook their individual contribution to the ecosystem. We all have a role to play and add to what is taking place.

It should not be underestimated.

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Even a little role matters.

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Just like every comments matters.

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That slow growth mindset doesn't just apply to Hive, but to PolyCub and Cub as well. It might be better for us that we aren't seeing that flash in the pan sudden influx of assets into the platforms like LUNA did. The time factor is going to work to our advantage.

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I would say that is true.

It took Tesla 15 years or whatever to become a profitable company. Amazon did not take off with its earnings until it was over 20 years old.

Perhaps we can give these projects a few years at least.

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I think it is well worth having patience in this case. What else do we have to do right now :)

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What else do we have to do right now :)

Comment. LOL

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Working on it! With two accounts, just like you!

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Well I only really comment out of the one account so there is that. LOL

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When there is a community of people who not only trust the system, but are also trustworthy themselves, that is a huge step forward

The system requires trust at the beginning Which the Hive platform is showing and following that trust will derive the aspect of investing and contributing without trust issues in the blockchain.

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Being able to trust each other is huge. We know there are a lot of people who are willing to step up when an attack happens. This is something that is very valuable.

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Which is why the blockchain keeps in progressing daily with the positive impact of such individuals

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Yes it does.

As people say, I came here for the rewards and stayed for the community.

Now we just have to get that idea through the heads of another 30K people.

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It is really possible with such amount of people trooping in to benefit from the blockchain as well.

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It is possible. We need to get people involved.

Seems like we are doing this one-by-one.

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How much trust do you have with this ecosystem and what are some things we can do to enhance it?

I am on the Steem/Hive blockchain since 2017.05.17. This is my fifth year on this blockchain, and the support of the Hive users literally changed and changing my life. This is something that no other platform could achieve, so I trust this platform very much.

Thank you to everyone for every help and support.
Thank you to every witness to keeping this blockchain secure.

Have a nice day. All the best. Greetings and much love from Hungary.

Hive changed your life but you are also part of changing Hive.

Everything each of us does enhances the system. This is vital. So the more coins that go into your wallet, the better the distribution. Also, have you as another contributor adds one more to the total. Collectively, this makes us a much stronger community.

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I agree with you, it's all about trust... the crypto market has suffered a huge hit as well and may need time to recover since the Trust has been broken due to LUNA and UST, mainly... I hope we will recover it soon

We definitely have a high level of trust on Hive. The transparency obviously helps a lot

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Where in the world will a project embark on developing Apps and ask the community to design a logo? Like Ragnarok? The transparency level and community involvement in decision making on Hive is second to none out there.

These are characters we should continue to retain and build stronger upon them.

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You're right, in the past I can remember people voting for big projects to be funded, while we don't even know the Person at the other end of the laptop handling the project

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Exactly and for me what Hive now exhibits is what I consider epitome of trust.

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We're undeservedly underrated. It's crazy

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Let's keep strengthening the chain for when the exposure eventually comes because when it does come we will have the unhappy throwing everything at us and we want to be in a position to defend our chain.

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Who would do that?

Only people like Dan who think like that. He has the mindset of community and decentralization in all he does.

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Dan is just one hell of a passionate Hiver, you can tell from his voice when he speaks, his got the success of the community at heart to be creating a sink for HBD with the SIP project.

Lots of admiration for him!

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"Ride or die".

That is his view of Hive. He is going to be at the top of the mountain or the bottom of the sea.

It is a mindset that many of us have. Anyone can join us at whichever location we end up at. LOL

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Lol we ride together in whatever direction, never have I been part of a team with same common goal. This is unique Task!

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The community also helps. We see a number of people with very strong reputations. This is where we have the advantage. People are showing themselves for what they are on Hive through their activity.

And because of this, we know we can count on them although we dont know them.

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And because of this, we know we can count on them although we dont know them.

Exactly, we often come to build trust by understand the individuals here. Plus there's no way we cannot say who people are because they're here protecting their personalities and helping to prove how trustworthy they are. This is something we cannot have elsewhere. Imagine having to trust someone you haven't met or seen with your funds. It tells the level of trust.

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We saw in the Sun attack how people step up and defend the chain.

That means there are a bunch of user names that we see daily that we know will be there if things come under fire.

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It's great to have these people, it's awesome to build these trust that span across an unlimited space.

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Ah markets are markets. We have seen this before, not necessarily the exact attack vector, but it has happened over time.

So we just keep expanding and growing on Hive which helps to reduce the attack vectors.

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The fact that financial institutions have maintained their existence for many years is one of the factors that create trust. When we take into account the Steem history, we see that Hive has been operating for a long time. During this time Hive has been growing steadily. Although rapid growth is desirable, it can often lead to accidents, as in the case of Terra. This is also the case in the corporate world. As a result, I am satisfied with Hive's performance.

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Financial institutions are designed to convey trust, that is true. They have different things in place that is meant to aid in that. Things such as FDIC in the US feed into that same idea.

Hive just has to keep developing and expanding. Time is a great aid in this. We see people trust older versus newer.

The track record of Hive keeps growing each day.

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We are building a more solid foundation every day and thus, a day will come when we will be tested just like luna is today.

Can we take that much hit? I think yes, perhaps we've survived Justin's suns attack and see how much we've grown in the years.

If we can't right now then, we can think further and build more defensive measures to fight such attacks in the future.

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The attack by Sun was an eye opener. However, even though we came a long way, we still need to keep pushing things forward. Adding more layers of defense is not a bad thing.

Once of the best weapons to develop is more people. If we double the number of people dedicated to Hive, we simply expand our "troops" who are there for battle.

Each person active and powering up HIVE is an asset. We just need more of them.

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Getting more people with a long term commitment to hive is going to help in a good way.

Our best bet now is to keep building and hold a strong position.

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I like how we've taken the time to improve on so many aspects on Hive especially after the hostile takeover. One of the reasons why we forked was definitely because we didn't trust Sun and his agenda. Blockchain and crypto obviously needs to establish a high level of trust. Inasmuch as Luna may recover, can it get back to that apex again?

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There are many who live by the idea of security and spend a lot of time thinking up ways to protect the chain. This is where we have a difference.

Also, each of us has the ability to help out by enhancing our wealth, resources that will be available if needed at a later date.

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I won't trade the process high for any fast success, the result of trying to achieve quick success can create crashes that will leave one humbled for the rest of their lives if they learn a lesson at all.

Being on a platform built on trust is rare, it is not the world we now out there. Trusting the Hive's base layer code eliminates doubt and even better there's no single authority making decisions on behalf of everyone is an added advantage.

As we evolve we build stronger learning from mistakes of others.

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The fact that we have a community that engages with each other, at least to a degree, is huge. This allows us to interact each day and build trust.

It is something we do not see elsewhere.

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We even take the engagement off chain building closer relationships off it, show me one of such communities out there and 100 Hive will be coming your way.

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I dont think you can do that. There is not the tightness on something like Ethereum or Polygon.

On Hive, we have the social media aspect built in.

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In that case I will be holding on to my 100 Hive!

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Sometimes flying under the radar, out of the eyes of the masses, is of benefit. Hive is doing that much to the disappointment of many people. However, if we step back, we can see how this is advantageous. In short, it allows us to shore up our defenses.

I like this basic idea. I have been one of those disappointed in how slowly Hive has been growing, but you make an excellent point that makes me rethink that. It is a huge advantage to be in a position to learn from the mistakes of others and use the knowledge to become stronger. A lot of this current Luna situation is over my head, but I hope those who control and influence Hive can learn from it to make Hive even better.

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We also have the opportunity to keep spreading things out. This is vital when considering points of vulnerabilities. Learning from the mistake of others is important.

However, a lot of problems are solved by distributing things out further.

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The way I see the Hive ecosystem, is for it's incredibly high utility. IMHO, as the crypto space matures, you'll see value shift away from hype fueled projects into solid, steady growth, useful ones, which Hive exemplifies.

I agree you completely.

We need to keep adding utility which generates value. It is value that is what helps to provide defense.

This means that we can trust what is taking place more as the utility keeps growing.

It all ties in together.

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I held true to being through to the end when Hive is hit.
The lesson that would be learnt from what happened to an algorithmic stablecoin, we are building ourself we need to be resilient.

We are still early on and we are seeing a lot more taking place.

This is all helping us to build things properly.

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Bang, I did it again... I just rehived your post!
Week 105 of my contest just started...you can now check the winners of the previous week!
!LUV
2

Without trust, several systems I've known throughout the years have a bright future. Everything vanished in an instant. Sir, thank you for bringing this to our attention.

Well written.
I think the main value of HIVE is its users. It seems to me that the level of confidence in the high is known to be lower than the market average.

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I have seen a lot of fly by night type of tokens and the coins which eventually ran away. My experience with the Hive is that here the trust building is rewarding in many ways. I feel keeping the money part aside, we get to establish connection with many content writers here, which is a bonus experience.

What vulnerabilities do we have that can be exploited?

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I haven't even been here 8 months yet (almost), and in my time here I've come to have strong trust and hope in the Hive Blockchain Ecosystem. I very much appreciate the slow, steady, calculated development. Hive is utterly amazing as it is now. I can't wait to see how it grows and unfolds over time. I'm all in! Hive is my digital home base, as that's where my greatest trust and excitement sits.

I really liked your post. I think that trust, community and doing things step by step is what makes Hive great and reliable.

I couldn't agree with you more as trust should be at the heart of every project. I know I can relax with HIVE as everyone has HIVE's interest at heart. There is nothing more reassuring knowing the community is growing stronger together.

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Thanks for passing and upvoting my actifit post !LUV

I think trust is very important and I would look more towards the development. If it's ongoing and you can see a future, I don't see any reason to reject it. Hive is still developing a lot and I hope they stick around even during the bear markets.

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This type of information is very important since it strengthens even more what each project I start in means to me, what brought me to hive apart of course from wanting to start in the blockchain ecosystem, was precisely the confidence that inspired me , when I learned about the attack of the old chain and how hive defended the nature of the decentralized project, I did not hesitate to start, it is as you say trust plays a very important role, for my part I understand that the results are long term, that's why I focus and stay on the chain, working on my learning to guarantee the fruits I want, and I know that this also contributes to hive
Great your post!

been beating around other blockchain thinking there was something better but now i realised i had gold and was out side looking for rusted metals, hive have gave me a whole lot from trusted friends too business associates

I'm certain that the entire cryptosphere is going to have serious trust issues over the LUNA/UST debacle. Too many people will be scared after such spectacular and rapid wealth destruction. Hive will be affected too, although I hope much less than other crypto projects.

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Trust comes with time. Time top show your actions and have a history of positive ones.

A lot of these get rich quick schemes come from nowhere and go just as fast.

It's great to have a project like hive that is slowly building into a robust and expanding success. Now we just need to see a few more projects gain momentum.

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That is the thing right there Trust, everytime I think that Hive might be vulnerable to Whale attacks I hear or read about mechanisms that have been put into place to defend against such attacks.
I really have no interest in other Blockchains as Hive is my home and the blockchain that has educated me through its various communities.
Now that Hive is on a Blue Light Special sale now is the time to surge forward, I am going to try and double my HP while the price is nice and low.