Cash Flow in the HiveNet Ecosystem
LEGAL DISCLAIMER: This article may contain forward-looking statements, subject to risks and uncertainties that could cause actual results to differ materially. This article shouldn’t be seen as any sort of purchase recommendation.
In this article we take a deeper look into the cash flow within the HiveNet ecosystem.
The HiveNet ecosystem evolves around its inherent payment system, the HiveCoin, which is powered by the HiveNet blockchain. HiveCoins act as a fast, flexible and secure payment system, which is free of transaction costs and not hindered by country borders. Due to its deep embedment in the HiveNet, the HiveCoin is of versatile use and receives a continuous demand.
Whenever a customer pays for computing services on the HiveNet, a demand for HiveCoins is created. Either the customer performs the payment in HiveCoins, which he had to acquire beforehand, or the customer performs the payment in a local fiat currency. In the latter, the biggest part of the payment is automatically exchanged on digital currency exchanges into HiveCoins. In both cases, the customer payment, directly or indirectly, required the purchase of HiveCoins, creating a demand and increasing its potential value.
The customer payments are managed and secured by the Provider Reward Application (PRA). The PRA is the software module, which rewards providers of computing power based on pre-defined algorithms.
The HiveNet Blockchain will be secured by the highly efficient Proof‑of‑Stake consensus mechanism, which enables holders of HiveCoins to participate as nodes and thereby elongate the HiveNet Blockchain and receive rewards of newly minted HiveCoins. The likelihood of creating a new block and thereby receiving a block reward depends on the amount of staked HiveCoins. Therefore, holding large amounts of HiveCoins is incentivized, which creates a further increase in demand for HiveCoins.
Although there are good reasons to hodl HiveCoins and bet on an increasing value, owners of HiveCoins may want to cash-out their HiveCoin savings. Compared to most other cryptocurrencies, in the HiveNet they receive a lot of options to do so. We believe that offering the users versatile options, increases the interoperability of the HiveCoin and will therefore increase its trading volumes and elevate its value.
Trading on digital currency exchanges
HiveCoins will be freely traded on digital currency exchanges for other currencies, like Bitcoin, Ethereum, US-Dollar, Euro, Renminbi, etc.
Peer-to-peer transactions
HiveCoins will be easily transferrable between different participants of the HiveNet. These transactions don’t cause transaction costs and are therefore very competitive compared with traditional money transfers or payments.
HiveNet debit card
We will offer a specifically issued HiveNet debit card (we explain it in more detail in the article HERE). This debit card can be used to pay with HiveCoin savings at any shop that accepts debit card payments. We will issue this debit card in cooperation with a financial service provider to reduce regulatory and developmental complexities as well as project risks.
Online payment system integrations
We will offer various widely adopted online payment systems, like PayPal, Alipay and others. This enables HiveCoin holders to pay with their savings at many online shops, which accept the respective payment methods.
Donations for charity
For those computer owners who provide computing power and want to donate their rewards for charity, we will implement the option to automatically forward their rewards to a charitable organization of their choosing.
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