It is amazing how ahead of the curve some things can be.
Hive is already changing the non-fungible token (NFT) game and the capability within the ecosystem still isn't really possible. When the infrastructure is in place, we will see a massive shift in how NFTs are viewed.
The best way to think about this is as digital real estate. Obviously, this is something we discussed regularly regarding the network. This can also be looked in the same light with each token representing a part of the whole. It is a simple framework from which to view things.
When we look at a network like Hive, what it is? The answer to this lies in the fact it is a public, decentralized database. That said, when it comes to feeding value, there is a lot more to it. After all, Amazon and Facebook also have databases yet the market capitalization of those companies is based upon the services they are offering along with other factors.
The same holds true for all networks. However, we do have to remember, in the digital world, databases are behind all that we do.
Web3: Changing Things Completely
For those who are inclined to think about innovation, it is easy to conclude how Web3 is going to change everything. The idea of ownership is being forever altered. This not only applies to networks, but also the data contained therein.
Which brings us back to the data that is resident in a database. What value does it bring and who is monetizing that?
On Web 2.0, we know the answer to this. Centralized corporations such as Google or Apple control what is within their ecosystem. All aspects of financial benefit are fed to those companies and, in turn, their shareholders. The users are not part of the equation in this regard.
When it comes to Web3, we see a different structure. Here is where the stake in the digital real estate is spread to the token holders. On Hive, one has the option of buying in like with most other networks. However, there is also the opportunity to be rewarded, essentially being paid in the digital real estate.
This, on its own, is a massive shift. Nevertheless, what Hive is about to do is going to blow people away.
Data Ownership
The digital real estate concept can be taken a step further. When one considers real estate, we get a mental framework that most can associate with.
One of the keys for real estate is the commercial activity that is created. Even with residential real estate we see this.
Someone owns a piece of property. It generates cash flow via rents, providing the owner with an asset of value. Depending upon the income produced along with equity value, this person has something that can be sold into the market.
Why can't the same thing be done with digital real estate? Actually, it can. Hence, if we consider data to be similar to a house or office building, we can establish the same premise.
Here is where NFTs enter. Unlike the base layer coins which are the same (fungible), here we are dealing with a token tied to something specific. It is similar to the deed to a house. In a particular are, they are all the same. The difference is the property each individual deed is associated with. This makes each one unique.
A token is a representation of something else. Here we see how it can apply to a piece of data. However, when that is placed on a public blockchain, nobody owns it. Therefore, we are not really dealing with the data per se but the revenue tied to it.
In other words, this is what pushes value towards this piece of digital real estate.
Changing The NFT Game
We know there was a lot of monkey business tied to NFTs. It had a massive bubble that burst. Celebrities were out there selling them with people buying them up believing they would moon. The reality is most of these are worthless because they are tied to nothing.
Hive can change that by tying the NFT to data. Where Hive differs is in the ability to place data on-chain. With something like Ethereum, there is a transaction fee each time someone wants to write to it. The same goes for most other blockchains. Here is the hindrance to building a database.
This means limitation in regards to how quickly the database can grow. With Hive, for the most part, that does not exist.
now we stumble upon where things change completely. By filling the database with something that has value, this can be tokenized. Once it is, we have an asset that is effectively digital real estate. It operates in the same way as the physical counterpart. As the market develops, it could be used as collateral, sold, swapped, or anything else people can think of.
Also, unlike the NFTs of the past which were not tied to anything, this is interconnected to something of value. Basically we are talking about the capture of the monetization of data. The major technology companies do this in aggregate as do other networks. However, we are drilling even further down and monetizing on another level.
What gets really mind blowing is this becomes a rinse and repeat situation. As mentioned, the data is not owned by anyone. Whatever is posted on the blockchain is open to any application. The data can be used once or 1,000 times.
Do you see where it is going? If we have NFTs tied to what is generated off that data, we now have an asset that is not based upon vaporware. The entire JPEG discussion does not apply. Instead, we are treating data as digital real estate, generating value in a similar fashion to its physical counterpart.
Hence, the solution for something like Hive is simply to fill the database. As it expands, is connected, and monetized, we can see the asset representing it growing in value.
Digital Real Estate on Steroids
Ultimately, this changes the potential of data completely. We, naturally, are still left with the fact that much of what is generated has little worth long term. This is mostly due to the fact that the majority of information is time sensitive and has little value the further away we move from it. The closing price of the stock market 6 months ago really doesn't mean a whole lot.
That said, we do have data that is extremely valuable, used repeatedly, and generates a ton of traffic. What we are essentially doing is moving the network effect from the platform level and associating it with each piece of data created. This is what is captured by the NFT, hence incorporating all the benefits of said data on that particular platform.
Suddenly, owning 1,000 NFTs could mean something. Instead of JPEGs that are not really associated with anything, we are tying these tokens to the real world operation of data.
Due to the constraints on many networks (read fees), this is not something that is going to be built there. On Hive, anyone with stake has the ability to write to the database.
Hence why Hive will completely change the game. We are simply waiting on the infrastructure to be built and then we will have the ability to develop this. In the mean time, build those databases.
By the way, this also solves the Wiki problem.
For those connecting the dots, this is a major wake up call.
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@taskmaster4450 The only leg up that Ethereum has for direct on chain data storage is that there is not a block size limit.
The ridiculous Ethereum fees completely make that worthless (in my perspective) but it is a big difference when it comes to Hive's 65k characters per block limit. Thankfully data is easy to chunk and store in multiple Hive blocks.
I keep thinking that someone should reach out to Project Gutenberg and CD3WD to see about storing their massive troves of text on the Hive blockchain.
Fees make it hard to store data especially at $5 a pop.
Some of the EVMs are easier but when having a great deal of data to apply, even 10 cents adds up.
Yeah. I did a ton of research online looking for blockchains that support base layer file storage and although it is technically possible with both the Bitcoin and Ethereum networks it just is not affordable. Like you said it adds up!
I also did not find any other networks/blockchains that supported such a feature. That does not mean they do not exist... but I could not find them.
Hive can really get ahead of the curve with it if it were implemented. As you may know 'file storage' can also pave the way for decentralized services like the LLM(s) and such.
I agree with you completely on this. We need to get more data on Hive.
To my knowledge, there is no a public text storage change out there that anyone can post to, at least not with an affordable cost. That is why we need to focus upon the things which get data onchain so apps can utilize it.
I do not see many doing it. The quest for rewards overpowers everything. LeoGlossary declines all rewards and posts more than 20x times a day.
Yeah, yesterday I had the epiphany that the reason that Hive lacks many things... is because there is such a heavy focus on the monetization of everything... instead of creating services that provide true utility.
The constant focus of making more money (especially with projects) results in lots of:
Stepping over a dollar to pick up a dime!
I would say it is the focus upon rewards, short term monetization, versus the long term.
Adding a ton of content to the database should be everyone's priority. Then the devs can incorporate the data they want.
I see your point there. Folks do tend to come to Hive in the first place 'for the rewards' but honestly what else is getting offered to bring folks here?
I was more thinking that those who are building dApps tend to focus on monetary gain.
Undoubtedly it is that focus occurring at all levels of Hive from content creators, to curators, to developers that makes the scenario what it is.
Sans rewards though it would just amount to folks shuffling money around (and finding ways to make money) off of folks content.
If the 'rewards' themselves are such a problem (which are a fundamental part of this blockchain's creation and existence up until now) wouldn't it be fair to say that any and all monetary aspects of Hive are just as problematic.
What if we removed all APR earnings from HP and HBD, remove NFT sales and every other way folks (who are not just content creators) have to make money?
The entire blockchain would be 'dead in the water' if that were the case. In other words if the idea is to remove 'profit making' (or just making money in general on Hive) then it should be a unilateral approach. If it is not unilateral it just amounts to disenfranchising some folks and turbo charging the profits of those whom are not disenfranchised.
Just the ability to monetize data without having to maintain your own infrastructure is a big step forward. Tie in the NFTs and now that data can be bought and sold on chain.
I'm just wondering how this is going to work on a technical level. VSC smart contracts will be Layer 2. An NFT could be created and linked to a particular post, and you could buy or sell this NFT, but on Layer 1 the post itself would still be attached to the original creator and would show up on that account's blog page. Seems like there might need to be some changes on Layer 1 for this to work, such as adding the ability to change the account that owns a post.
Your viewpoint seems spot on. However, what I think is missing from your analysis is the monetization. There is none of that at the base layer (after the reward window). Hence the data is idle in that sense.
It is up to the layer 2 for the monetization. It is also where the ownership will be tied.
The data is truly owned by nobody since it is public, yet can be pulled into an application and owned there. An odd twist but one that shows the exponentiality of the data.
Damn just got another article out of this. LOL
Imagine, in the physical world, one who does not have substantial capital would find it difficult to own a piece of real estate. But on Hive and with NFTs, such ownership can be a reality in the digital space even without a huge sum of money. I think that's why many find it unbelievable that this kind of thing can exist in the crypto world.
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I got questions …
What infrastructure? To develop what? For minting NFTs? Isn‘t it there already over at nftshowroom? What databases to build? Copy the knowledge that‘s already there for everybody to use? Tie to NFTs afterwards then?
Real World example …
Let‘s say @tokenizedsociety produces 1000 cocktail recipe blog posts. Then at some point in the future „the infrastructure“ is built (to ty the recipes to NFTs?) and then what? HE ties NFTs to the recipe posts? What‘s the value of having those NFTs to already freely available knowledge elsewhere on the web and in dozens of books.
Maybe i just don‘t get the point here … 🧐
Nope. You do not get the point which is not slight against you since that is most of the crypto world.
That is why NFTs are nothing more than garbage, pump and dump schemes, and bubbles.
People still havent found out about what value is. This is going to require another article.
I get that the NFT game so far is exactly what you say without a doubt, but in the article you‘re talking about using NFTs to tie data to them and i also get that data holds the value, but not all data is valuable imo hence my example above with tokenized’s cocktail recipes you can get at every corner so to speak.
That's precisely the point. You can get that information at every corner. EXCEPT here. That's what we're trying to change
Ok, let’s say we copied all of the internet/knowledge and put it on chain here, then what?
I don't know. That's for each one to decide. We're just trying to provide the tools
The big online websites are doing this with the data of their users. Selling their data. They are the products, and mostly they do not even notice it.
That is true. Some are given some income but they have no equity stake.
So data could actually generate values and income like real estate? Shouldn't we protest because most website and media are using our data to make money without giving us any return!
Yes that is possible on #web3.
As for the protest, people are the products on web 2.0. Do they realize it?
NFTs are revolutionizing the world through their ability to encapsulate, digitalize and tokenize any real life asset and beyond. The domain is limitless and those that will be pioneers will reap the most rewards. And the global transformation is in progress.
That is true. Since most are overlooking it trying to sell NFTs and getting them to pump is the mistake most are making.
I think I wrote an article about Real Wold Assets and how can Hive be a promoter in that area, a few months back. Really...quite really ...hoping most of the things you wrote in this article will become a reality
Actually till today, I am still shocked that Nft wide hype and attention can fuzz out compared to how it was back then
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Web3 is really changing things completely truly and it is only projects that has been incorporated in Web3 that will survive
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Data and posts going in the blockchain is a big deal. This makes them available for a very long time. My concern on that is the amount of storage necessary to handle that information. We would need a big corporation to switch over to Hive/blockchain for it to be actually viable. If it will be a community driven project, it will need a lot of funds, and I am not sure if it will get backing that easily.