Why Hive - Decentralized Governance

in #hivelast year

The majority of people that get into crypto are not looking to engage in layer one governance. It is usually to invest for the goal of a profit, or the crypto network provides some kind of use case they enjoy. However, some have been in crypto for quite some time now and are looking to expand their horizons and participate in governance (a science few people understand) on their favorite crypto networks.

A novice in governance participation must first learn how to assess which networks have censorship resistance adequately; this information will set you on the right foot. The entire point of decentralized governance is censorship resistance from any entity controlling the network. How do you know if a network has censorship resistance? First, you must differentiate a true layer one from layer two (or what should be layer two) and understand the methodology in which technology should be stacked.

The big mistake I see in crypto today is the ego of being a layer one vs. layer two; the names are irrelevant, and the tire does not get angry at the engine; they work together. Only when human behavior is involved do we see people trying to put engines where tires should go and vice versa due to ego and ignoring practical application.

A quick rule of thumb is highly computational (such as smart contracts) or "big" data (such as videos/images) should be on layer two. Layer one smart contracts do not scale because every node in the network has to run every smart contract. With layer two smart contracts, dapps can run the exact smart contracts they want on their own layer two node system. Hive's novel invention allows layer two dapps not to worry about micro forks; it handles it for them, which allows any dapp to rewind and replay the dapps internal state automatically- this allows for easy-to-build and highly secure dapps.

With the immutable storage of text, you can build proper layer two applications. Layer one should consist of the transaction layer and long-form text storage. You can have a fast, scaleable layer one by removing the heavy-duty data and resource-intensive tasks to layer two. Contrary to popular belief, the layer one cannot be slow and expensive it must be fast, cheap, and scalable, allowing layer two to be built more securely with minimized trust. The more the layer two can interact with layer one, the more secure layer two becomes. It is critical to allow layer two to store data at will on layer one without the cost becoming prohibitive.

Nowadays, we see what is called "layer twos." However, due to prohibitive fees, these layer "twos" are forced to batch data on their own separate networks, meaning in between batches, you will need to trust the security of that layer two because the data has yet to be stored on layer one. Essentially, they need to become a layer one in themselves for security, and they rarely communicate with the base layer they are trying to be a layer two for due to prohibitive fees.

The longer the batch time, the more security natively needed for the layer two. Since fees on the most popular PoS networks are high due to having everything IE smart contracts + more on the base layer, the "layer twos" are forced to communicate more infrequently. It is a vicious cycle that ultimately leads to layer twos becoming layer ones that will communicate with another layer one on rare occasions, providing very little security in the grand scheme of things.

Layer twos always need some incentive to secure what it is doing. The more load layer one can take off the layer two, the less cost it will be to secure the layer two. More so, if the layer two can frequently communicate with the layer one, it can easily fork out an attacker without needing to start over or lose a massive amount of data integrity. Having an incorruptible base layer of truth allows dapps to become as efficient as possible with minimized trust needed to operate.

Layer two: Big data storage, dApps, smart contracts, anything that isn't text-based

Layer one: Transactions, Long form text data which encompasses everything text-based such as Accounts, Communities Lists, Followers Lists, text content, etc.

Layer two: Changes often, relies on layer one for most things text-based that it wants to store immutably. It secures its own smart contracts on either a socialized layer two smart contract network or runs its own node infrastructure and incentivizes the smart contracts with their native token or some method of recycling fees to node operators. Since layer two does not need to worry about important things like account balances, transaction history, community/follower list, etc., it can solely focus on its niche, using the exact smart contracts they desire, in the language they want, with predictable fee cost.

Ultimately, big dApps will need to run their own smart contract infrastructure. Because using a socialized smart contract layer, the fees are unpredictable due to the "crypto kitty" effect of unforeseen mass adoption of a dApp overnight, spiking fees for everyone else regardless if your app has anything to do with it or not.

Layer one: heavy-duty governance. Requires no premine, no ICO, no centralized coin distribution, and no founder or the founder must resist the temptation to dominate the network ideals by remaining anonymous.

Coin voting is the foundation for dApps, and centralized coin distribution in any way will destroy the network's censorship resistance. The most important aspect of any chain is its current coin distribution and the projected future potential to distribute governance coins to as many different people in as many countries as possible.

You must have an ongoing incentivized distribution, meaning the coin stakers are incentivized to distribute coins to other people, or the coins will only go to the people staking, and they have no reason aside from selling to part with them. While coin selling is the number one way a coin gets distributed, relying on that alone is not the most optimal solution, especially if the coin governance is controlled by those not looking to sell.

Once the proper technological stack is achieved, the next way to notice if layer one has censorship resistance is if it does not have a centralized coin distribution. The first way to determine if the distribution is good is to see if the layer one coin had any kind of premine or insider sale/ICO. Moreso, the network must not rely on any centralized funding and must have a decentralized incentive mechanism built into the base layer.

The less reliant on centralized outside forces, the more resilient the network becomes as it matures. A centralized coin distribution, coupled with reliance on centralized funding, inevitably leads to centralization—the two most widely used governance systems to date are PoW and coin voting. While PoW is a form of voting, today, we will focus on coin voting.

PoS networks ultimately end up run by large staking pools. In practice, the largest staking pools rely on some form of outside incentive, predominantly a native token to the pool itself. The pool ultimately relies on centralized funding via selling its governance token. It is important to break down exactly how these staking pools are currently working in practice and how in theory, we may be able to tweak them in to have better odds of achieving censorship resistance.

In practice, what we see happening on PoS base layer networks is that staking pools pop up like mini centralized DPoS networks that ultimately run the network. Whichever pool can offer the best deal to the stakers gets the most stakers; the pool with the most stakers and liquidity can offer the best deals, a virtuous cycle that ends with one giant pool in the end that runs the entire network. Since the staking pool is not supported by base layer decentralized incentives to upkeep the smart contracts and to run the pool's maintenance, the pools become centralized in governance. Staking pools adopt various ways to vote in validators; for instance, some pools choose the top validators, and governance token holders can then vote on those vetted validators. Another example is voting in as many validators as you want, with no vetting process, using the native token.

Forcing off-chain voting delegation coupled with no base layer incentives built in to support the maintenance of the pool creates centralized staking pools. Hive witnesses are paid via the onchain incentives based on their vote ranking. They do not need to create their own token to support their witness; they are paid to do so. There is no overhead with smart contracts to be maintained and upgraded because the voting is all done onchain as a feature.

Moreover, HiveGov (DPoS in general) is harder to overtake via money attack; 51% on HiveGov vs. 34% on POS. The more nodes you have, the less % of them can be used to validate at any one time.- This makes HiveGov more resilient to money attacks because the attacker needs to get almost twice as much coin to attack the network consistently.

Comparing PoS vs. HiveGov is the wrong approach for the sake of attacking the other without constructive criticism is not optimal. A better approach is to see how they can help each other. If we set ego aside and look at the facts, you'll see that PoS and HiveGov are not only helpful to each other but also essential. PoS is the leaves of HiveGov tree.

If we simply look at both of them as coin voting, one with on-chain voting and a parameterized minimum validator count to become operational, you'll start to see where both have strengths and weaknesses. And mind you, I said the broad term "PoS," but not all PoS networks are the same either; there are parameterized PoS networks that act better in practice than your traditional unparameterized PoS networks. One such is how dexes are built using honeycomb tech. This example would be, the top x amount of validators, let's say 20, have all equal say. So you have your PoS, but the benefit of parametered validator count.

Since DPoS requires human bandwidth to vote, the more DPoS-type networks you have, the more watered down the voters become, the newer networks- This is where PoS-type networks thrive because they can rely on the layer one for security and not have to worry about voting others in. Therefore you can infinitely scale PoS networks without the worry of the governance becoming fragile. Both have their strengths and, when combined, form a formidable foe.

To be continued...

previous: https://peakd.com/pos/@theycallmedan/why-hive-series-pos-vs-hivegov

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And if you don't love me now, you will never love me again. I can still hear you saying you would never break the chain. - the chain

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There's so much to learn from the distribution and ways the web3 works and especially something like Hive. This is some nice material to start wrapping the head around the ideas of decentralized government and th Blockchain and also de ins and outs of the inner layers inside this whole joined effort. There's a lot content creators need to understand about Hive that could keep us at easy. It isn't an easy task but with people taking their time to explain these concepts, we might get there.

The fact that some humans try to control the chain because they feel they are the owners or very important to it makes them what to operate the chain in a decentralized way and that will not make the chain grow as it should.

PoS and HiveGov working together is indeed going to bring about incredible development. Working with the both layer is also key, it's very obvious that the two layers need each other to be the best that they should.

I always love reading from you because I don't get to do that everyday and I know how much knowledge I have acquired from reading and listening to you. I want to really appreciate you for sharing this knowledge with us, I hope I get to see the continuation of this.

I think that for ordinary people, it is very difficult to understand some things and terms. However, if we are in cryptocurrency and decentralized platforms like HIVE we must be aware of the latest developments, investments, changes that are being made. Hive is an uncensored, decentralized platform with new projects in the pipeline: its expansion knows no bounds. In that sense this post is of much interest and importance. I have been 4 years in this platform and due to ignorance I have made unforgivable mistakes, one of them caused the theft of my previous account. Being soaked in everything that happens in HIVE and the cryptographic world becomes a necessity and an urgency. Thanks for the information, @theycallmedan

CBDCs are rolling out around the world. The banks that are rolling them out ultimately are owned by investors that also own most of everything else, including the physical infrastructure of the internet, upon which cryptos utterly depend. The purposes of the CBDCs can only be fulfilled if they are practically universally adopted, and cryptocurrencies directly oppose that adoption.

It is facile for owners of the internet to censor cryptos, and since they need to prevent alternatives to CBDCs, it is predictable that cryptos will be censored. It is great that the understanding of governance has progressed to the point you have herein related, but the resistance to censorship you have considered neglects physical dependence on infrastructure, and the ease with which owners of that physical infrastructure can simply refuse to transmit encrypted data unless they are availed the keys to that data.

Not your keys, not your coins.

What resistance to that censorship is possible? The only potential for cryptos to resist it is to not be dependent on physical infrastructure they don't own, as far as I can tell.

Thanks!

The only potential for cryptos to resist it is to not be dependent on physical infrastructure they don't own, as far as I can tell.

This is absolutely true. That is why we have to keep taking the long view. We need a lot more infrastructure built before we can reasonably take on the existing system. For now, they are the predator and we the prey.

As for CBDCs, they hype with them is dying. Both the Fed and BOJ turned their backs on them for now. These are two of the biggest central banks in the world basically admitting there is no desire for them.

CBDCs do not benefit bankers. They primarily can serve politicians, who botched up fiscal policy to the nth degree. Now they want to handle monetary policy.

Banks and bankers are obsolete, one way (crypto), or the other (CBDCs).

A very powerful lobby there. Bankers run governments. So do not be so sure banks will be replaced by CBDCs.

In fact, those, in my opinion, are going to epic failures.

My own understanding is the intelligence community has gained the upper hand over all, and banks, government, and private industry are more organs of that creature than its fellow creatures.

I sure do hope you're right about the failure of CBDCs, because my life depends on it. While I literally eschew money to the degree possible, I could not do so without the community goodwill and their use of money I depend on. If they are trapped by CBDCs that goodwill will no longer avail me my needs.

I do expect them to try to force CBDCs on all of us, and to starve, freeze, and impoverish us until we either submit or die. If we surmount that challenge it will be because we do not starve without their food supplies, do not freeze without their energy, and have money we ourselves create and control that they cannot take from us.

Banks are unimportant in the grand scheme of things, as it is the power banks wield economically that actually matters. That power can be wielded through CBDCs even better than it can through fractional reserve banking and debt based money. This is why I believe banks are obsolete as buggy whips and lobotomists.

On second thought, lobotomists just use televisions instead of ice picks today. That industry seems yet to thrive.

there was a lot of good info here, good write up!

I think when it comes to POS and HiveGOV, we're constantly seeing a disparity Instead of how they can both complement one another. I sort of applaud the system that's set in place in the aspect of witnessing voting, the form of failsafe especially when someone is trying to take harm the system by overhauling everything. I think it's all in the ego, . one day we might set it aside to build something that's going to work.

I really like writing on this hive and a lot of the information you write is very useful

I got a applause to hive but I think the social networking would be key. The defi is great. Imagine if the world population decided to use hive.

Honestly man I'm fukn with hive apart from a few other cryptos right now tryna figure things out what's making me mad is I've bought hive and having a hard time to get it here lol tryna find different options

The second part of The Chain was the theme music for Formula 1 motor races on TV when I was growing up. Amazing piece of music!

Thanks for your update I appreciate your efforts

I guess as you mention both (PoS and DPoS) have their strengths and it is not a matter of choosing one type of network containing one type of protocol over the other. A lot depends on the interests of the people inside and outside the network and it is up to us to try to find out the purposes of each network.
But, i am quite relieved by what you say that it is very difficult for one person or group of people to have the most participation in the network. I am still learning about Hive and everything i have seen has pleased me. I would hate to see things change for the benefit of a few.
I will continue to look forward to the next parts of why hive
Thank you

Yesterday, I googled about Layer 0/1/2, sidechains, etc.

Glad to have this post pop into my feed. :)

5 years in the network and more to come, always learning every day.

excelente informacion para todos, en especial para las personas nuevas en esta plataforma como yo, que cada dia trato de entender muchas cosas nuevas para mi, esto es un mundo y cada dia se aprende algo nuevo. gracias por tu publicacion.

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I was lost in the concept you have on this post. I got to the end and was wanting more but at the same time in the brink of losing my train of thought, lucky you called it quit for a next post or I would've just lost all you said.

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Hive governance is leading the way. The decentralization is evident by the coin distribution. Using Delegated Proof-of-Stake as the consensus mechanism means that we see a system of block production that is spread out. No one witness is producing an overwhelming amount of blocks. In fact it is under 5%.

All of this leads to the idea of whatever is built on the layer 2 can be a powerful force within cryptocurrency. While Ethereum and other blockchains might be of interest to Wall Street, we see Hive existing for the average person.

By participating in the HIve.blog social network I have been able to assimilate the meaning of cryptocurrencies, the usefulness they represent for the economic movement of the platform and all the benefit that brings implicit for all its users, and also for the huge staff that manages and builds the hive. There are excellent publications that provide the timely knowledge to be able to understand the basic terms and develop the correct use of how to invest our earnings in the Hive blockchain. Being this a decentralized platform, there coexist various communities that provide solutions in services to the user, within which, it is as well as a duty, to offer those who give us a good service and excellent guidance, to share with all of them part of what we generate: profits from our publications. All this in order to achieve the joint growth of all parties. It is to be expected the development and achievements of PoS and HiveGov working together, both "both layer" are inseparable, they need each other to achieve the goals set.
It is very pleasing to read a report like this, because it shares fair and balanced information that we are all entitled to use to benefit not only our own interests, but also including the interests of this social environment. This way we all have opportunities to grow...
Thanks for sharing with all of us. Greetings @theycallmedan


Al participar en la red social de HIve.blog he podido ir asimilando el significado de las criptomonedas, la utilidad que representan para el movimiento económico de la plataforma y todo el beneficio que trae implícito para todos sus usuarios, y también para el enorme personal que administra y construye la colmena. Existen excelentes publicaciones que aportan el conocimiento oportuno para poder comprender los términos básicos y desarrollar el uso correcto de cómo invertir nuestras ganancias en la blockchain de Hive. Siendo ésta una plataforma descentralizada, coexisten diversas comunidades que aportan soluciones en servicios al usuario, dentro de los cuales, es así como un deber, ofrecer a quienes nos dan un buen servicio y una excelente orientación, compartir con todos ellos parte de lo que generamos: ganancias de nuestras publicaciones. Todo ello para que se dé el crecimiento conjunto de todas las partes. Es de suponer el desarrollo y logros del trabajo en conjunto de PoS y HiveGov, ambos “both layer” son inseparables, se precisan recíprocamente para lograr las metas planteadas.
Es muy complaciente leer un informe como éste, debido a que se comparte la información justa y balanceada de la cual, todos estamos habidos para usarla a beneficio no sólo de nuestros intereses, sino también incluyendo los intereses de éste medio social. Así todos tenemos oportunidades de crecer…
Gracias por compartir con todos nosotros. Saludos @theycallmedan

Very true the censorship of the resistance haven't been looked into people are more concerned in inventing and getting out profit they don't understand the governance of the crypto world both layers are supposed to be understood and worked on.

I don't understand much about the tech (yet) but I have a vague understanding of what you're explaining here.

All I can say is that decentralized governance is far more important than any monetary concerns at this stage of the game and everything falls apart (again) without it.

Because (as you point out) human ego and everything that comes with that - and this extends into the monetary aspect because it brings with it, the exact same thinking and behaviors that have separated and almost destroyed our societies and will do it again in any community that allows or encourages it.

WE need to change. The tech is hardly even the problem at this point :/

But what I do understand about W3 (the tiny bit) is that it has the potential to be a proper viable solution. If we stick to the concept of "for the good of the whole" and redefine success to no longer be aligned with how much we have stashed in our pockets and with better values and principles in general.

Please the gods!

I went through this with so much enthusiasm, but I kept going back to read again and again because, maybe being a newbie here, I find it not so easy to fully understand some terms used here, but I feel they are really important.

I'll be glad if you can kindly make a beginner friendly write up for people like us that are new to hive and cryptocurrency in general.

Thanks.

Hive has shown the way in terms of decentralised system but somewhere i know the say decentralised but still more than centralised
More greese to your elbows

Soy nuevo en la comunidad!
y con información como esta. me ayudaran a ir aprendiendo cada vez un poco mas.
muchas gracias!