Understanding Hive’s Layer 2 & Tokens
You can’t talk about layer 2 without mentioning layer 1. I think you need to understand what layer 1 is, picture it and try to use it to understand layer 2. The blockchain technology is a very beautiful innovation that its utility and values are rapidly increasing over time. This is the reason behind scalability improvements because the more the use, the more the demand which leads to more transactions.
The layer 1 is usual the first protocol known as the the base on the decentralized blockchain, like I will call it, the foundation layer of the blockchain. Based on compounded activities and transactions, there is a need to create a second layer for better sorting, better book keeping, better diversification better security and so on. Here comes the layer 2, known as the secondary or auxiliary protocol or frame work built on the base protocol, the layer 1, to support and help in the scalability problem faced by most blockchain.
We are seeing this everyday and witnessing it on Hive, but most of us here like the newbies don’t understand this. Lots of activities are on going on Hive, we see different tribes and communities. Hive goes way beyond just creating blogs and getting upvoted, it’s technology is much more advanced than that, it gives so many opportunities to create other utilities on Hive. People are building stuff that involves the involvement of utilizing the layer 2 protocol.
Let’s take a look at the splinterlands community, that community is totally a different ball game on its own. There are people in the community that don’t care about every other activity going on on Hive except splinterlands and splintertalk. Have you been on the splintertalk front end before, it’s a continuous on going activities of transactions, from posting about splinterlands, to curations to delegations and transactions. Built on the layer 2 protocol they can easily perform these transactions on a good scalability level without interruptions. This layer 2 allows the community get specially tokenized because it’s giving a Web 3.0 kind of experience. The name of the splintertalk token is called SPT, which is used to incentivize curators and authors. Mind you, this splintertalk front end, though related to splinterlands is way different from the splinterlands site. While you can blog and interact with different people in the splintertalk community, you can’t play the splinterlands game on the splintertalk platform. Here comes a different front end built on the Hive blockchain with layer 2 native token(DEC), the name of this front end is the splinterlands with the site known as either splinterlands.io or splinterlands.com.
This is not where it ends on the power, capacity and attributes of the layer 2 protocol. On the splinterlands site, we have a different kind of operation found there. We have the battle arena, this is where you play your battles, these battles get recorded and stored on the blockchain forever. You get a market place, this market place is where you can buy, sell, rent or delegate cards to anyone. All transactions are recorded on the blockchain. These cards are NFT cards that can be bridged and sold on the wax blockchain (correct me if am wrong). You also earn rewards when playing games and these rewards ranges from potions, to credits(another splinterlands currency) to NFT cards. Can you imagine the amount of scalability on splinterlands alone? This is the advantage of layer 2.
Another community you should use to understand the importance of layer 2 is the Leofinance community. It’s one of the most interactive communities on Hive. The team is so great that they have allowed the bridging of the layer 2 token Leo into other blockchains like that of BSC and Ethereum.
Most of the tribes with their different unique front ends have their own native layer 2 token which we call the Hive-engine tokens. These tokens can be view on leodex, tribaldex and Hiveengine. The beauty of Hive is that you can earn many layer 2 tokens on a blog, this is a privilege that we can’t really find outside the Hive eco system. Can you imagine how great it is that while earning Hive on a post, you can also earn other layer 2 tokens. While these tokens are only tradable within the Hive ecosystem, it’s great that we are gradually seeing some being recognized outside Hive. Look at the Leo being tradeable on pancake swap and uniswap. It’s also listed on CoinMarketCap.
We have DEC that is also listed outside Hive and the price can be tracked on the CoinMarketCap platform.
Posted Using LeoFinance Beta
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