WHAT IS HIVE AND HOW DOES IT WORK?

If I say straight forward, Hive is an one kind of Crypto Currency. Right now it's in beta position in the coincapmarket. It's an decentralized technology which run as a system called blockchain. So Hive is the name of the blockchain. This blockchain is run by 'miners'.

What miners do?

Miners are those person who run the system on their hardware/ servers. In every update a new block produce which is added to the previous block. By this way those produces a chain system. In short it's become blockchain. In Hive this blockchain are run by the witness in stead of 'Miner'.

how hive works

There are about 21 witnesses in this technology and they are chose by vote of hive account holders. Every Hive account got 30 choices to vote for witness. Why 30? where 21 witnesses are running the system then why 30 are chosen. Because System keep this 9 witness as backup if any witness failed in 21 of them .

These 21 witness schedule with time cycle where every 63 is count as a round and every round 21 blocks are produced. When new block produced by witnesses, hive token also produced. It's very much like bitcoin. But there is difference between hive and bitcoin.

"Now the question is everyday these tokens are produced but where all these goes? "

A portion of the produced token given to the witness . Approximately the portion is about 10% of the total production. The rest is divide and given to the hive blog user . The users are those who create content, curate and hive power holder. Hive blockchain has record all the action of its user for preventing spam attack.

There is no transaction cost in hive but there is term called resource credit. In hive every action of an account count as a transaction. Every transaction cost these resource credit. This resource credit can be regain after a time period. Resource credit is directly connected to the Hive power. The hive wallet which hold more hive power will have more resource credit.