What is Hive and How Does It Work in 2024?

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HIVE coin is a cryptocurrency focused on building a decentralized social media ecosystem where content creators are rewarded for their contributions. But how exactly does HIVE work and what value does it offer both today and in the future?

In this article, we’ll explore what HIVE is, how it functions, and whether it has long-term potential as both a coin and platform.

What is the purpose of HIVE?

Hive coin

The primary purpose of HIVE is to power a digital economy on the Hive blockchain where users are incentivized to engage with one another through content sharing and curation.

When you post content to the Hive network or interact with other users by commenting and upvoting, you earn HIVE coins as a reward.

This “Proof of Brain” consensus mechanism aims to foster a thriving community where quality contributions are promoted and users are fairly compensated for their participation.

In doing so, HIVE hopes to build the world’s most open, censorship-resistant, and user-owned social media ecosystem.

How does HIVE work?

Under the hood, HIVE utilizes delegated Proof-of-Stake (DPoS) consensus which relies on network stakeholders, known as Witnesses, to validate transactions and produce new blocks. Users vote for Witnesses by staking their HIVE tokens.

When you post on Hive, your content receives upvotes from the community over a 7-day period which determines its “Brain Power Score”.

Based on this score, you and engaged users receive a portion of newly minted HIVE coins according to your proved stake (more on staking below). In this way, quality, eye-catching posts rise to the top and are rightfully awarded.

It’s also important to note the stablecoin Hive Dollar (HBD) which aims to promote spending within the Hive economy. Users can freely exchange HIVE and HBD on internal decentralized exchanges.

Does HIVE have a future?

Hive token future

HIVE was created in 2020 through a community hard fork from Steem, another social blockchain project. This reflected frustrations with the centralized direction Steem was taking under a majority stakeholder.

Over the past two years, Hive has steadily grown its userbase, apps, and total value locked (TVL). Popular dapps like DTube, Esteem, and Splinterlands have also migrated from Steem to Hive after the fork.

Looking forward, continued decentralization of Hive’s governance, expansion of its dapp ecosystem, and monetization features for content creators could cement its status as the leading open social network.

And of course, adoption begets value – as more users learn of Hive through platforms like EXEcrypto, its growth stands to accelerate further.

When HIVE launched?

HIVE launched on March 20, 2020 after a contentious hard fork from Steem in response to governance issues. This saw the historical Steem community data and accounts ported over to the new Hive blockchain. All STEEM holders received an equal amount of the initial HIVE coin supply.

Since then, HIVE has grown its total market cap from under $10 million to around $135 million today according to CoinMarketCap rankings.

While volatility remains high by crypto standards, HIVE appears committed to nurturing a sustainable digital economy through its unique community-driven models.

Is HIVE a scam?

Hive coin scam

No, HIVE is not considered a scam by the crypto community. As an open-source project focused on decentralization, transparency is paramount in its operations. Hive was created as a response to centralized overreach seen on the prior Steem network.

Core leaders within the Hive Foundation are publicly known and work to further the technical protocol in collaboration with the global community.

No pump-and-dump or ponzi allegations have been leveled against the project since it forked from Steem three years ago. Of course, all cryptocurrencies carry risk that early-stage investors should be aware of.

Is it safe to invest in HIVE?

As with any young cryptocurrency, there are inherent risks to investing in HIVE that potential buyers should understand.

Chief among them is its currently untested scale – while growing, adoption is still expanding on Hive and any unforeseen technical issues could impact the price. Regulatory concerns also loom over the entire crypto sector.

That said, for risk-tolerant investors seeking exposure to an alternative social platform, HIVE offers intriguing long-term potential through its community and business models if the project continues to develop as planned.

Just invest cautiously and only what you can afford to lose for the time being.

Is HIVE worth it? HIVE Price 2024

Hive crypto price 2024

HIVE’s price performance since launch has been volatile but generally upward. It began trading around $0.15 but climbed over $2.70 in 2021 amid the larger crypto bull run. Today, HIVE still fluctuates in a $0.25-0.40 range according to CoinMarketCap.

For 2024, much will depend on macro factors like wider crypto adoption and regulation. However, continued product development on Hive could see more use case realization, driving further gains. Staking rewards also offer a chance to accumulate more coins passively.

For supporters of an open alternative to Big Tech, HIVE remains an intriguing speculation. But patience will likely be needed as real-world integration progresses on its still developing blockchain-based social platforms.

Where to buy HIVE?

Some popular centralized and decentralized exchanges where users can currently purchase HIVE include Binance, Gate.io, Upbit, and MEXC. Be sure to select a reputable venue that supports your preferred payment method and offers the trading pairs you need.

HIVE can usually be bought with Bitcoin, Ethereum or stablecoins like USDT. Register, pass verification, and transfer funds to your exchange account before placing a market or limit order. Withdrawal is also available to your personal Hive web wallet.

How to sell HIVE?

Hive token sell

Selling HIVE is essentially the reverse process of purchasing. Have your HIVE coins in a supported exchange wallet, then place a sell order on the HIVE/cryptocurrency pair you want such as HIVE/USDT.

Once filled, the exchange will credit your account with the sale proceeds which can then be withdrawn back to your linked bank account or other funded wallet. Fees generally apply to trading and withdrawals, so be sure to factor those into your expected proceeds.

How to stake HIVE?

Staking HIVE earns coin holders steady rewards by powering up the network. The process involves locking your tokens into the Hive network for a 13-week vesting period in exchange for gaining “Hive Power”.

This power allows greater influence over governance votes and amplifies the payout weight of any content curation you perform. Around 10% of new HIVE tokens are allocated towards staking rewards each year, distributed based on individual Hive Power amounts.

To get started, simply hold HIVE assets on the Hive blockchain powered by sites like Hivewallet.com. From there, you can initiate the powering up process through the user interface by delegating a set quantity for staking. Rewards will then accumulate over time.

How to mine HIVE?

Hive coin mine

Unlike mined coins like Bitcoin, HIVE is not mined through proof-of-work. Its delegated proof-of-stake network relies on user staking, content creation, and curation to drive value instead of expensive hardware.

The closest analog to mining would be engaging meaningfully with the Hive social platform through high-quality posts, helpful comments, and considered votes. This proven activity earns users HIVE payouts directly from the system itself without additional steps.

Focus your efforts on building the Hive community through participation rather than hardware if looking to acquire HIVE tokens through effort. Staking also allows passive yields when simply holding the coin long-term on the Hive blockchain.

With updates coming regularly, be sure to stay on top of project developments through sources like EXEcrypto for the latest news impacting this emerging crypto.

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