Hard Fork 25: Recurring Payments A Major Addition

taskmaster4450 (85)in LeoFinance • 3 years ago

Hard Fork 25 is set to take place in a couple days. It looks like it will go live at 14:00 GMT. This is the second hard fork since Hive was created in March of 2020.

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A lot was written about what this will do. One feature that appears to be overlooked is the addition of recurring payments. This is something that is vital to the long-term success of Hive. In fact, since I do not believe any other blockchain has this programmed at the core level, providing a distinct advantage.

Subscription World

There is little doubt we live in a subscription world. As technology evolves, this is model is becoming more commonplace. Consider how many times our credit or debit card gets hit each month. There is the Netflix subscription. Of course, we have Disney for the kids. Our gym membership is on there. Perhaps we subscribe to a couple of investment guides. All of this for the very low price of X dollars.

We are seeing this concept moving offline into the real world. Tesla is about to roll out its Full Self Driving subscription. Instead of paying $10,000 or more for the software, it will be available for a monthly fee. As long as that is paid, the software is available. This is in addition to the Infotainment package they are building into their vehicles.

The key is to get people to sign up once and then have it all automated. What this does is it generates recurring revenue for the companies. Of course, online entrepreneurs are well aware of this. Their goal is to get people to give over their credit card numbers. This is not claiming that this is done with nefarious intentions, although that does happen. The main point is that it is far more profitable to keep billing people automatically as opposed to having them pay each month.

Passive payments are a lot easier to collect than active payments.

If more of our world is going to a subscription model, then it only makes sense to be able to establish recurring payments using cryptocurrency.

Unique Blockchain Feature

As stated, I do not know another blockchain that has this feature built in at its core level. If this exists, it is being done via applications or through some second layer solution.

For example, there is no way to set up recurring payments using Ethereum. There might be some smart contracts that can address this issue although that opens up another can of worms in terms of security. The basic wallet configuration of Ethereum does not provide this ability.

In a few days, that will not be the case on Hive. Going directly into the base code is the ability for any wallet to include recurring payments. This means that applications can incorporate the subscription model using either HIVE or, more importantly, HBD.

With the attention that HBD is getting, it does appear this is a terrific union. A subscription model based upon a stablecoin could really offer some potential to builders on Hive. While the peg has rarely held, the simple fact that the code states that 1 HBD can be converted for $1 of HIVE. This is often brought up in discussion about arbitrate opportunities yet it is equally applicable to payments.

If a vendor knows that he or she can get $1 worth of HIVE for each HBD received, then setting up recurring payments makes a great deal more sense. Unfortunately, to be truly effective, the peg has to work since that is what most will notice. This is something that is also being tended to in this hard fork.

Attracting Entrepreneurs

Recurring payments is a necessity in the world of cryptocurrency. This is something that has to be part of the base features.

Today, this is accomplished via some third party application. The website, as an example, will bill one's credit card or PayPal account. Recurring payments is not really a feature of fiat currency.

Obviously, cryptocurrency can seek to replicate this. There are already a few Visa cards floating around that allow for payment in crypto. We could also see applications start to integrate this into their systems. In the end, they are simply replicating what is already out there.

Adding this feature to the code base creates an entirely new set of possibilities. By incorporating the payments at the blockchain level, entrepreneurs can see the immediate value in that. Anyone who is looking at utilizing a subscription-based model will be attracted to this.

To take it one step further, it is something that can be added to any community. Presently, we have the ability to post in different communities. The front ends provide a system whereby all posts are seen as they go live. At the same time, the trending pages highlight posts based upon the rewards they receive.

What if, however, a community wanted to attract a known expert in that particular field? Here is an opportunity to set up a subscription based service. For a monthly fee, the readers could have access to this individual's posts. This allows the author to generate more income as opposed to just upvotes.

We could also establish this within the existing userbase. For example, perhaps there are a handful of authors who are very knowledgeable about the subject in the community. These people could be part of a subscription based service where they put together an "exclusive" article each week. Thus, the userbase can subscribe to this content for a monthly fee.

Business builders will see the value in a recurring payment system. Bringing this to Hive can only open up new opportunities. While we live in a world where information is abundant and free, premium content is still highly valued.

Naturally, this will take on new possibilities as people start to innovate and experiment with the feature. The great thing about open communities is that people see things that others overlook. We will likely see entrepreneurs playing with different models over time. Those that are successful will be duplicated by others.

Hopefully you can see how this feature being added to Hive could be a major addition.

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