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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That Potential where you can be offered services even with your funds on hive. It will truly be a game changer
Yes smart contacts are here and they are not new. Is good for hive, but it was also about time. Dan Larimer wrote about making graphene a smart contact Blockchain back in 2017 and set the core features for what would be announced as SMT. But then steemit went silent and laid off everyone and was only implemented under hive engine.
6 years later we finally got back to it, and hopefully made people see the value in it.
Personally, I think smart contacts never really achieved the expectation the crypto community had in them.
The promise was intelligent, self reliance and independent entities. Remember the Airbnb smart locks that will self unlock to the carrier of the nft without human interaction? Or the self serving taxi charging and paying their own supplies like gas and issues.
Certainly expectations often outpace technology. The ideas you mentioned still hold validity although stuff like autonomous taxis are still not feasible (for the most part). And self charging is even a greater challenge.
But your point is taken: a lot of potential that went unrealized. Will we see it starting now? I am optimistic if people will focus upon building and providing services.
I'm not as optimistic as you start accounting to regulation, scams, security holes and technical infeasibility along with unaccounted risk. Eventually after 7+ years of smart contacts, most of the achievement has been #DeFi and #NFT which are in one phrase. Token generation.
I haven't really seen as much use like the arbitraging features por voting that where also other functionality from smart contracts.
So like a congressman said at one point. Most of the impact of cryptocurrency is tokens buying for other tokens. Which might sound too simplistic but as time goes by is often true.
Crypto greatest impact on the third world has been remittances, but credit is still a long way from being something people has got into, let alone, identity or traceability of supply chain.
Agreed.
Of course the major challenge is that everyone focused upon market pricing and few services were built, including what you point to. So we are stuck with those who were looking for the quick hit and easy money.
People in the industry do not seem to understand value capture and what that means.
So now we go back to look what people are building, most of the space including smart contacts are just new market making features. Whenever is NFT, ENS, Inscriptions, DeFi and value taking markets that make the crypto world more complex but also gets further away from the real world IMO.
Is way more exciting to create new protocols, new platforms, marketplaces and specs than to bridge crypto with payment hubs so that farmers can sell their milk or eggs. Or that the wine bottles are tokenized or that the 2 million refugees in congo can get their identity registered on the Blockchain.
I'm sure there are devs that want to tackle this projects for recognition. But realize that sometimes this problems are way more complicated than write some lines of code. And other moving pieces need to happen in order to achieve the goal.
The development you describe is being done. What I fear is we are seeing that come from the VC funded crowd, which means nothing more than another constructed system where a few are able to pull the strings.
Alas, open source does spread in the end. It just takes a lot of time.
Hive's speed is its greatest asset. Smart contracts, especially native smart contracts would be a game changer. I think that the first blockchain to really reach widespread use will need to be fast enough to be used to pay for things. We should absolutely develop our own point of sale terminals.
What is referred to here is not native as being on Hive itself. This is a sidechain being built. HAF is another project that will have them in it but is also layer 2.
It's going to be interesting to see liquidity pools and how it's going to interact with hive-engine tokens if at all.
My guess is developers start to create their own smart contracts and house it on VSC. The H-E will still be in operation with the circulating supply spread on both chains.
People will choose where they transact.
You are right, liquidity is going to be a major component.
Man I am just tired about how long we are waiting for smart contracts on the Hive blockchain. We have our nice, but without smart contracts we'll never be able to challenge the big players.
Infrastructure takes a long time to build.
Look at HAF..they are at it two years. Of course, look at Ethereum upgrades and how long those take.
I'm looking forward to it, it will make a huge difference in the ecosystem. It will also make Hive more attractive to new investors.
Can you point me towards the code base for the proposed smart contracts?
@vaultec can answer that. There is a repository on Github for VSC although I am not sure the exact name of the account on there.
Thanks. I was digging through the VSC code on there yesterday actually but did not see it. I will take another look.
Yeah I have no idea what he is put out so far. I know the BTC wrap is the priority at this moment on their agenda.
Understood.
Smart contract though i haven't thought about it, but the main question we should be asking is if hive is ready for such innovation
Why wouldnt it?
I am a bit curious why Hive still doesn't have smart contracts if they bring these much benefits. Is it a matter of who will be holding the keys or control? But I guess getting it late is better than not having it.
Base layer smart contracts contain a host of issues (according to many). The big point is every contract has to be carried by the nodes. Another is security.
With it on a sidechain, it can scale since node operators are not required to house each one and, if there is a hack, it doesnt affect the base chain.
There are some who feel we do need some smart contract on the base layer of Hive. I have a feeling these will be more like Hive Engine where they are not open to the general devleoping public.
I see. Thank you for the explanation, that shed a lot more light to things that I didn't quite understand.
Is there any timeline for the smt?
It isnt really a SMT in the way th eold ones were defined although there will be token creation contracts available.
They are starting with wrapped BTC and an exchange to swap that. That is the first target and will be entering test net soon.
Having smart contracts will allow us to literally say, "anything you can build on ____________, you can build on Hive".
This is true, i think that hive will move higher if they engage with the smart contract
You are right with your point there is need for other project to be build on hive. This will strengthen hive block chain.
I thinks these proposals will indeed be a game changer for hive, the smart contract is very good. We hope to see the hive grow like and more than other networks.
I am looking forward to the added utility of smart contracts on Hive. I hope our current infrastructure can support it. I would definitely enjoy financial services to take place directly on this chain instead of having to bridge back to others.
Definitely The Game Changer, can't wait to see it happens one day in Hive.
Btw, is there any roadmap regarding this?
VSC is the one who is developing the project. @vaultec has stated his plans in a number of interviews. I am not sure if a written road map was ever posted though. It might be in the github for VSC.
We expect with anticipation that game changer that will not only make transactions easy through hive, but that will also project the value of hive.
But being able to receive services and goods through our funds on hive will really be great. Thank you for this enlightenment @taskmaster4450.
I loved the phrase after 'literally say'
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With the rapid development that has taken place on the platform majorly I mean hive, I will say hive has grow with so much speed
I will be waiting for that game-changer.
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I'm really glad with the write up, you touched the key essential which is the smart contract
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Nice information
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