How Hive Carves Out Its Niche
I've always said and I still stand behind it that a blockchain is much like a business. The business is run by more than one person and active devs who are hired on to build applications on top of it. All of this interaction and transactions are what fuels the business.
Hive isn't any different in my opinion. There's a DHF which is a pool of funds that all hive powered up has a vote in. There's really no limit as to who or what can be added into this to be voted on and to me acts as the profits of the blockchain to fuel continued growth.
That growth I personally believe should come more form devs, hackathons and application development as a solid application in which people love to use and gains news is natural marketing that gets some serious results.
We saw that in the case of Splinterlands where the massive growth of the game during the last bull market sparked thousands of new users all interacting with the blockchain in more ways than one. Through blogging their game strats to simple blockchain broadcast via battles.
So how does Hive carve out it's niche?
I believe we have only just started to see how hive is going to end up doing this. Right now it's all done via a side chain called Hive-Engine in which places like InLeo.io and Splinterlands assets currently run on along with a number of others.
Most of these applications however are small or hold little value within them. I believe that reason is because of lack of funds coming in.
For me the vision I see is a core blockchain like hive with steady rewards and a reason to power it up that then has applications all around it which need the hive powered up for the resources to support their application and community growth.
That application then generates revenue for their token via sales, sponsorships, advertising and other traditional methods of raising capital for a company. This is where most applications current fall short is the revenue growth and building multiple revenue streams.
This is why we see over 90% of new applications fail which is typical for any new company really. But with Hive that rate should actully be better as you're already coming in with an established community that wants you to build on it and wants your application to be a success because the success of your application means the success for hive as well.
Why Niche Is Important
Trying to do everything leads your blockchain or company to end up doing everything either good or just ok. While focusing on a niche makes it awesome at just that and then good or ok at everything else while remaining focused on the core niche.
Take the Wax blockchain for example. It's mainly promoted itself as the gaming platform and it's done VERY well at doing so. But it's also now started to expand itself through other applications in DeFi and brining everything internal.
This has caused the chain to actully have growth and while the gaming niche is currently still hurting a bit it is still the primary focus of wax while it has the ability to expand into other niches.
Much like this Hive is primarily known for blogging or really a social blockchain. However blogging isn't very "social" but InLeo launched threads which is a twitter (x) type format which allows for a lot faster and better community feel. You also have video with platforms like 3speak, live streaming with VIMM and a Instagram style with Liketu.
This shows us that hive has the possibility for massive growth however the one thing lacking on most of these projects is the revenue source. A revenue source be it ads, subscriptions or any number of traditional business models would spark growth in terms of revenue for the hive blockchain which would have a positive impact on everything.
At the moment however either these funds are generated by paying the application a small amount of the rewards you earn on your post (creating sell pressure on the hive token) or it gets funding from the DHF which also pushes sell pressure on the hive token. It would be better if these applications could instead generate the revenue to cover their expenses and become profitable.
Hive will get there and it's come a long way, we just need to refocus some efforts and continue to build applications and community in which people wish to be a part of.
Posted Using InLeo Alpha
I'm actually a bit surprised by how much Liketu has blown up. For most of us it has kind of been under the radar, but for the folks down in central and south america it seems to have blown up pretty huge.
That's the majority of the Hive community these days from what I can see.
That doesn't surprise me at all.
I can't read half the posts on the feed, lol. Especially the music community. Nothing buy central and south America.
of which none of these people are actully going to INVEST into hive and are more of a drain on the token. I know some people find that mean to say but it's the honest truth in terms of business sense.
It's absolutely the truth though.
On the one hand, it is true that the Hispanic community is a Hive tap, but that is not a big deal. Plus you need creators to even spend the currency and circulate the economy.
Hive has that perfect in their code, with 50/50 rewards. But many take 100%.
Maybe it's not a lot of money and stopping it doesn't achieve a representative change, just perception.
What we have to do is to create new business models with more uses for Hive and HBD, where there is motivation to buy.
Communities have a great responsibility, not only dapps. Communities are also business and should look for people and investment outside of Hive.
They like their free money lol
It's fascinating to see how blockchain platforms like Hive are evolving. I totally agree that focusing on a niche, like gaming for Wax, can lead to significant success. Revenue generation seems like the key for a sustained growth
On development end hive blockchain still need a lot of improvements, threads can be compared with x but it will take lot of effort and time to reach that level of service and productivity
Plus zero generation of funds again because ads were removed
I can tell you right now that yes, the Hive-Engine projects are small because of a lack of funding. The DHF is a pipe dream for most because it's just a big circle jerk amongst the larger stakeholders. If you try to do a fair launch with your token like I did with the $LIST and $COM tokens, then there isn't really much money in the token sale as the market really kind of forms itself. Then if you do try to sell your token as a 'stock' type of thing to fund your project, you get attacked for selling a 'security' and your project isn't decentralized, blah blah blah. So it's a vicious cycle when it comes to getting a Hive project funded. People think that little tiny upvotes alone can fund you, so they think that is all that needs to be done. But there is way more too it.
I liked how Leo talked about running ads with the newly designed UI as at 2022, I really don't know what happened with that plan. Regardless Leo is probably one decent project on hive with good prospects. Funding as you say is very important, as for the DHF, it's a whole new story, it's poorly utilized and not channeled well and it's saddening
Greetings, very true, the idea is also that the communities are self-sustaining, so that they can also grow together with the new applications and one option could be the tokenization of the communities, another could be that the applications charge a percentage for their use, in order to generate income that can be used for marketing