Kriptoks

Hive-backed Dollars (HBD) are a unique type of trustless stablecoin that is pegged to the US dollar and backed by the underlying value of the Hive blockchain. The Hive blockchain, which was launched in March 2020, is a decentralized information sharing network built on the Delegated Proof of Stake (DPoS) protocol.

The value of HBD is maintained through an on-chain conversion operation that allows for the conversion of HBD into an equivalent USD value of Hive. For example, 10 HBD can be converted into $10 USD worth of Hive. This mechanism has effectively pegged the value of 1 HBD at or above the value of $1 USD. Hive-backed Dollars stored in a Hive savings account earn a variable interest rate, which is currently set based on the median vote of block producers.

Hive was developed to store vast amounts of content and make it available for time-based monetization. The blockchain's performance is designed to scale with widespread adoption of the currency and platforms in mind. With its lightning-fast processing times and fee-less transactions, Hive is positioned to become one of the leading blockchain technologies used by people around the world.

Hive's support for high transaction volumes, combined with its fast 3-second block times and fee-less transactions, makes it an ideal platform for building highly interactive applications that would bog down on most blockchain networks. It also has a unique focus on a 2nd layer architecture for distributing application loading across distinct sidechains to enable scaling beyond the limits of traditional smart-contract networks. This scaling ability also enables a unique competitive landscape for application developers.

Hive was founded by a diverse group of community members, developers, and investors who believed in the common goal of decentralization. There is no set team or company behind it. Hive is not based in any specific jurisdiction and has nodes, stakeholders, and contributors in many countries all over the globe.

Hive relies on decentralized governance, both for software development and for decisions about protocol upgrades, employing the DPOS consensus protocol. Stake-weighted voting is used to elect block producers known as witnesses that must agree to enable changes to the 1st layer protocol shared by all applications, providing a stable base layer, while leaving 2nd layer applications free to innovate rapidly. All protocol changes are proposed, developed, prepared for, and implemented through a transparent and collaborative team-working environment. They are entirely open source from initiation to their final release.

In summary, Hive-backed Dollars offer a unique approach to stablecoins by being backed by the underlying value of the Hive blockchain itself. Hive's technology and scalability make it an attractive option for application developers looking for a blockchain platform with high transaction volumes, fast processing times, and fee-less transactions. The blockchain's decentralized governance and open-source development process ensure transparency and collaboration, making it an appealing option for those seeking to build decentralized applications.