RE: Crypto 101- What Is Proof of Stake?
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Hey! Thank you very much for this very informative article. I have a question about DPoS. You mentioned that centralized voting can be a problem. Are there any possible solutions to this problem?
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Spreading your stake around to different validators that are further down the list. Hive is a little different because there are only 20 plus one rotational witness, so it doesn’t matter as much. But with say the Cosmos ecosystem, people tend to stake with the top validators because they think it will make more, but it just centralizes the chain even further.
Edit: I am personally not really a fan of Hive’s 20 plus 1 setup. That creates a top echelon of witnesses that pretty much run the chain. They call it the Hive cabal.
Ok I get it, there are so many subtleties to all these things. But it's so interesting. Right now, I'm trying to figure out the interests of HBD with @godfish. I'd be curious to know what you think of the 20% interest rate.
It doesn't have much to do with your article, but it fits into the universe. But if you don't want to answer, don't force yourself ^^
I am not that big of a fan because it discourages its use as an actual currency to be used for commerce. The introduced the 20% at the wrong time, basically as an answer for the LUNA/UST collapse as an “attraction” to Hive, but it was more of a detractor because many outside of Hive don’t trust algorithmic stablecoins.
It also puts sell pressure on Hive itself as it has to convert it to hold the peg. I personally don’t hold HBD. I usually end up converting it to USDT on Polygon and using it as collateral in AAVE where I can actually use it for lending, borrowing, and spending because I am one of those few that actually try to live on crypto, not just treat it like another investment vehicle like stocks.
Okay, I understand, that's very interesting.
I confess that I'm actually using the HBD as an investment vehicle at the moment. But I know what you mean. So I'm going to give it some serious thought.
I have to admit that the 20% is very attractive to me. I have some very big projects to finance in the future. In particular, a project for total autonomy on my land. And for the moment, I'm using the 20% rate as a means of saving.
But if it actually "breaks" Hive, maybe it's not such a good idea...
Thanks for your insight, I really appreciate it.
It doesn’t break Hive by any means. The chain runs without issues there. There are pros and cons with it. I just have my opinions on it. If you are using it for savings don’t let me stop you.