This part of the research will focus on the technical aspects of the Hive blockchain and ecosystem. We will attempt to compile key technical information that may be of interest for getting acquainted with the ecosystem. This material will be particularly useful for investors, developers, and researchers.
Please note that this is only the first part of our research, focusing on the technologies used by the Hive project and the ecosystem already built around it. Social, economic, and other aspects will be addressed separately.
Technical Specifications of the Hive Blockchain
Hive is an open-source blockchain designed to deliver high performance, scalability, and interaction with decentralized applications (dApps). Its primary goal is to provide a platform that supports social networks, gaming applications, and content projects with high transaction speed and zero transaction costs. The Hive blockchain operates on the Delegated Proof of Stake (DPoS) protocol.
Hive is designed to store large volumes of content and enable its monetization over time. The blockchain's performance is engineered to support scalability for the mass adoption of its currency and platform.[1]
If you want information on the internet to be stored "forever," Hive is the ideal option among all existing solutions. Unlike centralized services, data is stored directly in a distributed ledger (blockchain) rather than on servers owned by individual companies. The blockchain ensures data immutability.
Hive makes it easy to store and retrieve immutable strings of data and information. It supports zero-fee transactions with a three-second execution time and is designed to handle large volumes of content with the possibility of time-based monetization. [1]
Hive recognizes that transaction fees are often one of the main obstacles to blockchain development and flexibility. Instead of relying on expensive and inconvenient transaction fees, Hive employs a new model based on Resource Credits, which ensures zero fees. [1]
The Architecture of Hive and the Delegated Proof-of-Stake (DPoS) Consensus Mechanism
Hive uses DPoS to achieve consensus, enabling the following:
- The community to elect witnesses (validators) who verify transactions and produce blocks.
- Maintaining decentralization while minimizing energy costs compared to PoW.
- Ensuring high transaction processing speed (on average, a block is generated every 3 seconds).
In DPoS, users vote for delegates using Hive Power (HP) (staked native HIVE tokens), making the system more democratic and allowing the community to participate in network governance.
Witnesses, in turn, manage the network, approving or rejecting changes such as hard forks and protocol updates. To confirm changes at the blockchain level, at least 17 out of 20 witnesses must agree.
All protocol changes are proposed, developed, prepared, and implemented transparently through collaborative teamwork. Every update is fully open-source from the initial stage to the final release. [1]
Hive supports creating database snapshots, which are useful for data backup and recovery in case of failures.
State Management: The Hive blockchain handles state changes through transactions, including actions such as posting and commenting, transferring tokens, voting for delegates, and voting on posts.
Performance and Scalability
High Block Speed – The Hive blockchain generates a new block every 3 seconds, ensuring fast transaction processing and content publishing.
Support for High Transaction Volume – Hive is designed to handle thousands of transactions per second thanks to its architecture and the DPoS mechanism.
Scalability through Layer 2 Solutions – Hive supports the development of Layer 2 solutions, which allow for:
- Reducing the load on the main blockchain.
- Implementing specialized features for applications such as gaming platforms or DeFi.
Hive Engine, Token Creation, and DApps
Hive Engine is a platform built on top of Hive that provides the ability to create and manage tokens. Hive Engine allows users to launch custom tokens, integrate them with various dApps, and build systems to manage these tokens.
dApps on Hive – Developers can create decentralized applications (dApps) using standard Hive mechanisms such as custom operations and Hive Engine. This is done through an API that allows interaction with the blockchain and its data.
Examples of Custom Operations Use Cases:
- Economic Operations: Complex token distribution mechanisms can be created using custom operations.
- Voting: Developers can implement voting mechanisms based on custom JSON operations to manage processes within communities or applications.
- Games and NFTs: Custom operations can be used to create gaming mechanisms or facilitate token trading (e.g., NFTs).
When does the finality of any transaction occur
Transaction finality in the Hive blockchain occurs once the transaction is included in a block and the block is confirmed by the network, which happens very quickly due to the Delegated Proof-of-Stake (DPoS) mechanism.
Unlike other systems that require multiple confirmations to guarantee finality (such as Proof-of-Work systems), in Hive a transaction is considered final as soon as it is included in a block and the block is confirmed. This means that once the block is added to the chain, the transaction cannot be reverted, rejected, or altered.
Rollback Risk – In most cases, transactions on Hive can be considered final after the first confirmation, as the network uses witnesses to confirm blocks, and the likelihood of a rollback after this is extremely low.
However, theoretically, if a majority of delegates on Hive changed their position (e.g., in a 51% attack), it might be possible to roll back recent blocks, but this is highly unlikely in real-world conditions.
51% Attack — The Fear of All Blockchains
The Hive project itself is a response to the 51% attack that occurred with the Steem project. In theory, a similar attack is possible, but the solution already exists and has been proven through history, when the solution was a hard fork of the blockchain chain and the creation of the new Hive project. This historical fact shows that the true value lies in the community and the people; while technology is important, it is secondary, and a solution will always be found.
How the system protects against spam transactions
In the Hive blockchain, protection against spam transactions is implemented through several mechanisms that prevent abuse and ensure efficient use of network resources. The main anti-spam methods include:
Voting Mechanism (Hive Power and Delegated Proof of Stake)
Hive uses the Delegated Proof of Stake (DPoS) mechanism, where users vote for delegates (witnesses) who create new blocks.
For a transaction to be processed and receive attention on the network, users must "stake" Hive Power (HP). This is a form of "power" in the network that allows participants to influence decisions about transactions and blocks. Staking HP makes spam attacks more costly, as they require spending on voting and holding a large amount of Hive Power. In other words, if an attacker intends to spam the blockchain with a large number of transactions, they must first invest in the blockchain, thus strengthening it, which contradicts the malicious intent.Resource Credits (RC) System
At the protocol level, there is a system called "resource credits" (RC). Each account has a certain number of RCs, which limit the number of transactions a user can perform. RCs are allocated based on Hive Power, and when the resources are depleted, the user cannot make new transactions until they are replenished, which happens automatically over time. The RC system further limits the potential for spam attacks, as sending a large number of transactions requires a significant amount of resources.The RC system is designed so that over time, any user can perform more actions within the ecosystem. RCs can be increased sharply by purchasing and staking HIVE or by participating in the ecosystem by investing time and attention. In both cases, the ecosystem is strengthened—either through financial contributions or active participation in the ecosystem's life.
Public Key or Wallet Address on Hive
In the Hive blockchain, one of the first features implemented was human-readable addresses for transactions. Your username in the ecosystem serves as your address for receiving transactions. Instead of a string of random characters, tokens are sent to the recipient's username, which is very convenient and practical for mass adoption. However, it's important to remember that when sending to custodial addresses (exchanges and others), a tag must also be provided in most cases.
Protocol-Level Issue in Keyword Search
At the protocol level, the blockchain does not support content search in the traditional sense using keywords. Instead, when content is added, a tagging system is implemented, where content of a certain type is tagged with a specific theme and grouped into articles on that topic.
Additionally, indexing can be done by external tools outside of the blockchain, such as search engine indexing.
Users can collect key information by creating lists of links to useful and relevant information in new materials. This creates a unique atmosphere for the project, distinguishing it from others.
Opportunities for Developers
Hive provides a well-documented platform for developers, including instructions on using APIs, creating and managing tokens, as well as developing applications.
Developers can interact with an active community that is ready to support them in blockchain development and usage. This community actively shares experiences and develops new solutions.
Additionally, if you want to create something directly for the ecosystem or improve it in any way, you can request funding from the ecosystem itself through the Hive Decentralized Fund (DHF).
The Hive Decentralized Fund (DHF) is an alternative funding mechanism based on proposals within the DPoS system. DHF allows network participants to make decisions about direct funding for development and other projects that benefit the ecosystem. The distribution of DHF is decentralized by nature. Support for a proposal is calculated based on the total amount of stake backing that proposal.[1]
The Development Stage of the Ecosystem in 2024-2025
The Hive blockchain project, as of 2024-2025, has developed into a full ecosystem with numerous add-ons and applications, such as peakd.com, ecency.com, inleo.io, hive.blog, and many others. In fact, there are dozens of them, ranging from social networks to NFTs and video hosting platforms. Technically, these are referred to as decentralized applications (dApps) or websites built on the Hive platform. These projects use the Hive blockchain as a foundation for data storage and user interaction, but they also offer additional features and interfaces for users, as well as extra functionalities that are not part of the blockchain's basic implementation.
These interfaces can vary in functionality (e.g., social networks, blogger platforms, financial applications), but they use Hive as the backend for data storage, transactions, and interaction with the blockchain.
Projects that use the Hive blockchain to create and manage tokens can use Hive Engine to create new tokens and work with them within the Hive platform. A project can integrate tokens for use in its dApp or as internal means of payment.
Projects built on Hive can be classified as decentralized applications (dApps) or front-end interfaces. They use the Hive blockchain for data storage and processing, while providing users with a convenient interface to interact with the platform.
Thus, Hive has become more than just a blockchain project; it has evolved into a complete ecosystem, with the Hive blockchain at its core, encompassing both the advantages and disadvantages of the technology.
Efforts to maintain and develop the ecosystem are ongoing and continuous. This is one of the few blockchain projects that has real-world applications and a community of users who apply the technology in practice for everyday tasks, rather than solely for speculative purposes.
[1] The white paper of Hive was used in the writing of this material — https://hive.io/whitepaper.pdf
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