⛓️Chain

Chain

We are using Polygon!

Potentially Multichain Operation

1. Cardano

2. BNB

Why?

1. Interoperability

   1. As mentioned in the fund and information flow, we utilised a master-child contract relationship. When the master contract is being enforced a number of the child contracts are connected to the master contract, this is to ensure that all contracts are being protected and all loan repayment is being repaid according to the child contract amounts.

   2. Sometimes the number for a child contract could go up to 30-100 contracts relating to a single master contract, poor limitation of contract could affect the scalability and the interoperability of the platform to address the great demand for healthy interest rates in the crypto market.

   3. The average polygon transaction lasted around 2.1 seconds, going through the master-child contract relationship the earliest for both parties to receive cryptos would take up to 2 block transactions at most of 5 seconds.

2. Flexibility

   1. Given that the Polygon chain is a layer 2 chain for Ethereum, Polygon gives us the flexibility to accept multiple ETH-native stablecoins, this allows our borrowers with multiple ETH-native stablecoins to join the cause and provide P2P financing options.

3. Cheap

   1. Due to the fundamentals of the contract relationship, we require the chain to have a low gas fee. When compared the 1 Gwei = USD 0.000001.

   2. We would see a historical median of gas fee for polygon at the bound of 100 - 250 Gwei (but depending on the complexity of the smart contract) which equates to around USD 0.0001 - USD 0.00025.

We also take notes of it’s cons.

1. Ethereum layer 2 chain

   1. Given the nature of the Polygon chain as a layer 2 chain for Ethereum, it is highly dependent on the Eth ecosystem.

   2. At the same time, this level of dependency also allows us to take on the Polygon chain as our MVP chain, as it allows us to scale faster while allowing a high number of stablecoins to bring on board.

2. Competitions from other blockchains

   1. In the short-term, Polygon will continue to see tremendous competition from other blockchains such as Solana, Cardano, and even Binance Blockchain.

   2. Though from the perspective of Peer Hive, healthy competition between blockchains will drive the innovation process and the scalability of each individual native chain. In the end the greatest beneficiary of this competition process would be the end-user and the community of the blockchain.

Ultimately, Polygon would be the starting point for Peer Hive but not the endpoint as we don’t have any interest (at the moment) to create a separate chain to host the protocol.

Our current mission as Peer Hive would be stabilizing the current crypto ecosystem, this means it is in our best interest to provide multi-chain support for all our lenders in order to pool as many stable coins to our protocol and provide real financing needs to our borrowers.