Part H: Information on the underlying technology
This whitepaper follows the draft technical standards specifying certain requirements of the Markets in Crypto Assets Regulation (MICA) as published in ESMA's Final Report from 3 July 2024
Distributed ledger technology
OCLT is offered on Hive (https://hive.io) distributed ledger technology as a token on the Hive-Engine (https://hive-engine.com) L2 chain
Protocols and technical standards
The Hive blockchain and its Hive-Engine sidechain make use of state-of-the-art protocols and technologies. Hive, a "hard fork" of the Steem blockchain, is written in C++ and has been in extensive use for more than 8 years, processing more than 1 Million transactions per day, every day for the last 7 years. Its underlying "Graphene" blockchain protocol also powers other well-established public blockchains such as EOS, Telos, bitShares and others. Hive-Engine (HE) is a lighter blockchain written in Javascript and using the popular Node.js technology. In order to increase security, Hive-Engine backs up its state to the more robust Hive blockchain, which allows HE to act as a secure, resilient, and faithful ledger.
Technology Used
The technology stack is completed by several modules including databases (Redis for Hive, MongoDB for Hive-Engine), APIs and SDKs for several popular languages such as Python, JS, Ruby, and PHP
Consensus Mechanism
Hive uses the Delegated Proof of Stake (DPoS) consensus mechanism also used by EOS and other blockchains, a member of the Proof of Stake (PoS) family of consensus mechanisms. Hive-Engine also uses DPoS.
Incentive Mechanisms and Applicable Fees
Perhaps the most important feature that sets Hive and Hive-Engine apart from other blockchain systems is that there are no transaction fees. Thus transferring tokens on both Hive and Hive-Engine incurs no fee for the users. Hive validators get incentivized through a fixed per-block reward and the number of blocks they get to sign depends on their reputation. Hive users "vote" using their staked HIVE (also called "Hive Power") for up to 30 validators that they deem more performant. Validators who receive a higher amount of weighted votes are called by the protocol more often to validate and sign new blocks. They are thus incentivized to offer a good service in order to get more "votes", hence more blocks to validate and higher rewards. Hive-Engine (HE) is a smart-contract-capable blockchain that offers an expanded set of popular smart-contracts. Its validators also receive a fixed per-block reward. In addition, executing smart-contracts such as token creation on HE incurs an one-off upfront cost. The amount paid by users are pooled and distributed among validators in addition to the per-block fees. Thus validators are incentivized to attract new users wanting to take advantage of HE smart contracts.
Use of Distributed Ledger Technology
FALSE
DLT Functionality Description
not applicable
Audit
FALSE
Audit outcome
not applicable
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