Hive cannot be taken over.


This is something that is odd to say considering how it came into being.  However, as we look around the [blockchain](https://inleo.io/@leoglossary/blockchain) [world](https://inleo.io/@leoglossary/leoglossary-world), we see some interesting things developing.


Recently, Forbes had an [article](https://inleo.io/@leoglossary/leoglossary-article) that discussed [the recentralization of Bitcoin](https://www.forbes.com/sites/vipinbharathan/2024/05/04/research-on-recentralization-of-bitcoin/?sh=73bab3b32b03).  The article discussed how the system design was flawed from the beginning.  This is leading to [centralization](https://inleo.io/@leoglossary/leoglossary-centralization), something that [Satoshi](https://inleo.io/@leoglossary/leoglossary-satoshi-sats) was fighting.


>“The root problem with conventional [currency](https://inleo.io/@leoglossary/leoglossary-currency) is all the trust that's required to make it [work](https://inleo.io/@leoglossary/leoglossary-work). The [central bank](https://inleo.io/@leoglossary/leoglossary-central-bank) must be trusted not to debase the currency, but the [history](https://inleo.io/@leoglossary/leoglossary-history) of [fiat currencies](https://inleo.io/@leoglossary/leoglossary-fiat-currency) is full of breaches of that trust. [banks](https://inleo.io/@leoglossary/leoglossary-bank) must be trusted to [hold](https://inleo.io/@leoglossary/leoglossary-hold) our [money](https://inleo.io/@leoglossary/leoglossary-money) and transfer it electronically, but they lend it out in waves of [credit](https://inleo.io/@leoglossary/leoglossary-credit) [bubbles](https://inleo.io/@leoglossary/leoglossary-bubble) with barely a fraction in reserve. We have to trust them with our [privacy](https://inleo.io/@leoglossary/leoglossary-privacy), trust them not to let identity thieves drain our [accounts](https://inleo.io/@leoglossary/leoglossary-account). Their massive overhead [costs](https://inleo.io/@leoglossary/leoglossary-cost) make [micropayments](https://inleo.io/@leoglossary/leoglossary-micropayments) impossible.”


Sadly, the idea of micropayments is long gone, at least on the [base layer](https://inleo.io/@leoglossary/leoglossary-base-layer-blockchain).  This is compounded by further accusations of centralization.


>A [Bitcoin](https://inleo.io/@leoglossary/leoglossary-bitcoin) [developer](https://inleo.io/@leoglossary/leoglossary-developer) and researcher named 0xB10C announced on X that looking at the merkle branches that [mining](https://inleo.io/@leoglossary/leoglossary-mining) pools send to [miners](https://inleo.io/@leoglossary/leoglossary-miners) BTCcom pool, [Binance](https://inleo.io/@leoglossary/leoglossary-binance) pool, Poolin, EMCD, Rawpool, and possibly Braiins have exactly the same template and custom [transaction](https://inleo.io/@leoglossary/leoglossary-transaction) prioritization as AntPool. He was implying that under the covers they were all controlled by the same entity. Further [data](https://inleo.io/@leoglossary/leoglossary-data) from @mononaut added UltimusPool to the list.


This creates a major problem, especially as it pertains to something like Hive. 

https://www.beaxy.com/wp-content/uploads/image-cZBwGeFuxX6zkLQq.png


# Hive Is Resilient In That It Cannot Be Taken Over


Again, this is a counterintuitive [statement](https://inleo.io/@leoglossary/leoglossary-statement) which I will [address](https://inleo.io/@leoglossary/leoglossary-address) shortly.


Before getting to that, let us finish up what the problem is with Bitcoin.  If it is indeed being taken over (centralized), what can be done about it?


The answer is nothing.  This is a situation that starts with value.


Bitcoin has a major issue; it is Bitcoin.  This makes it different than anything else.


[Maxis](https://inleo.io/@leoglossary/leoglossary-bitcoin-maximalist-maxi) will applaud at finally being validated.  Once again, we see things backwards.  To believe this is a positive is a mistake.  In fact, it is a complete negative.


Bitcoin lacks resiliency because it is Bitcoin.  This means the [nuclear](https://inleo.io/@leoglossary/leoglossary-nuclear) [option](https://inleo.io/@leoglossary/leoglossary-options) is removed.  What is that?  Forking.


Of course, people will state Bitcoin can be forked.  That is true since it was done on a number of occasions.  But what do [BCash](https://inleo.io/@leoglossary/leoglossary-bcash), [Litecoin](https://inleo.io/@leoglossary/leoglossary-litecoin), BSV and others have in common?  They aren't Bitcoin.


You could [fork](https://inleo.io/@leoglossary/leoglossary-fork) Bitcoin 1,000 [times](https://inleo.io/@leoglossary/leoglossary-time), it makes no difference.  What you have will not replace Bitcoin.


This is where the ultimate defense is removed.


## Hive's Resiliency Is Based Upon The Value Proposition


What is the value of something like Hive?


Here is where we see the situation completely change.


Hive is a decentralized [database](https://inleo.io/@leoglossary/leoglossary-database).  If there is something of value in the database, that can be forked and anyone can take hold of it.  At the same time, the network could be overtaken with a money attack.


Since we are dealing with [DPoS](https://inleo.io/@leoglossary/leoglossary-delegated-proof-of-stake-dpos), the distribution of the [coins](https://inleo.io/@leoglossary/leoglossary-coins) affect things.  If someone went on a buying spree, they could do something similar to what [Justin Sun](https://inleo.io/@leoglossary/leoglossary-justin-sun) did.  In this situation, however, open [market](https://inleo.io/@leoglossary/leoglossary-market) [purchases](https://inleo.io/@leoglossary/purchase) (or a lot of [OTC](https://inleo.io/@leoglossary/leoglossary-over-the-counter-otc) deals) would have to be undertaken.


That said, what is truly achieved?  The data is available to anyone.  There is no need to wage a money attack to get the data.  Anyone can fork it.


Here is where things get very interesting.  The value of the database is a potentiality.  It is akin to a highway.  What good is the Autobahn if we are using [horse](https://inleo.io/@leoglossary/leoglossary-horse-animal) and buggies?   The value is not in the data itself but, rather, what is done with it.


We now see where [building](https://inleo.io/@leoglossary/leoglossary-building-structure) comes in.  


What is built on top of the blockchain, utilizing the data, is where the value is.  In a voluntary [economy](https://inleo.io/@leoglossary/leoglossary-economy), people choose where they want to set up camp.


If one is taking control of the blockchain,  nothing on top is acquired.  Certainly, [application](https://inleo.io/@leoglossary/leoglossary-application) teams can opt to remain.  Of course, if the new regime is not to their liking, and a fork takes place, the applications might leave.


This is exactly what happened with [Steem](https://inleo.io/@leoglossary/leoglossary-steem-blockchain) when the majority of applications switched chains.


It is the value that is created on top that pushed down to the blockchain.  It is why, blockchains have no value on their own (outside of Bitcoin).


## Decentralization


We are dealing with a concept that applies to other chains as well.  The exception might be [Ethereum](https://inleo.io/@leoglossary/leoglossary-ethereum-blockchain).  This followed a similar path as Bitcoin, being forked many times yet nobody was able to recreate Ethereum.  Some chains could hold potential but, thus far, nothing has rivaled it.


One of the issues, in most of the instances, is the concept of centralization.  Ethereum, since it switched to [PoS](https://inleo.io/@leoglossary/leoglossary-point-of-sale-pos), is not decentralized.  The founders still have enormous stake, overwhelming the system.  The fact the [staking](https://inleo.io/@leoglossary/leoglossary-staking) pools have a few [validators](https://inleo.io/@leoglossary/leoglossary-validator) getting the majority of the [blocks](https://inleo.io/@leoglossary/leoglossary-block) is an issue.


Forks of the chain have addressed some of the issues.  Ethereum is another one where micropayments is impossible.  We also see the idea of deflationary money being espoused, proving once again how stability is overlooked.


This is something that can be ignored as [stablecoins](https://inleo.io/@leoglossary/leoglossary-stablecoin) have stepped up to fill the void.  However, when dealing with attack vectors, this is still a point of contention.


What if someone was able to [buy](https://inleo.io/@leoglossary/leoglossary-buy) out Gavin Wood's stake?  Does anyone believe someone like Blackrock could not pour a massive amount of money into Ethereum to [gain](https://inleo.io/@leoglossary/leoglossary-gain) control?  When the likes of Fidelity, BR, and State Street show up, they end up taking massive positions.


Then we have the [ETF](https://inleo.io/@leoglossary/leoglossary-exchange-traded-fund-etf) situation.  


If the [SEC](https://inleo.io/@leoglossary/leoglossary-securities-and-exchange-commission-sec) ever approves this, will we see billions pouring in?  Once again, we would see a lot of [crypto](https://inleo.io/@leoglossary/cryptocurrency) in the hands of [custodians](https://inleo.io/@leoglossary/leoglossary-custodian).  Could they stake a massive portion of this?  


Thus, Ethereum has a similar problem as Bitcoin, albeit to a much smaller degree.  Ultimately, users would not care where a kick-ass [dApp](https://inleo.io/@leoglossary/leoglossary-decentralized-applications-dapps) was posting its data.  They simply would use it, only requiring a different coin for gas fees.


The advantage to Hive is the coin distribution is strong.  No single person holds more than a few percent of the entire total.  To gain even a 25% [share](https://inleo.io/@leoglossary/leoglossary-share-stock) would require a lot of money.  If done on the open market, this would drive the [price](https://inleo.io/@leoglossary/leoglossary-price) up, making the process even more difficult.


Ultimately, what would someone get?  Even if successful, a fork with the majority of the applications (games) moving would leave the chain with little value.  This creates a massive wall of resiliency.


The fork is one of the most powerful concepts negating the [power](https://inleo.io/@leoglossary/leoglossary-power) plays of people with nefarious intentions.  It exist for everyone other than Bitcoin.  Unfortunately, due to the success of that [ecosystem](https://inleo.io/@leoglossary/leoglossary-ecosystem-digital) in [terms](https://inleo.io/@leoglossary/leoglossary-terms) of recognition, it is now boxed in.


___


[What Is Hive](https://inleo.io/@leoglossary/leoglossary-what-is-hive)


Posted Using [InLeo Alpha](https://inleo.io/@taskmaster4450/hive-resiliency-it-cannot-be-taken-over)