The Hot Data Manifesto

Web3 freed money and compute, but not data. Hyve’s Hot Data Manifesto explores how composable, verifiable data transforms markets into thriving decentralized economies: the foundation of the new Web3 era.

The Betrayal of the Web3 Ethos

The original web was a triumph of innovation. It erased borders, connected the world, and gave rise to hyper-efficient markets. Centralized storage, high-throughput, low-latency services like AWS S3, was the necessary solution to manage the explosion of data. This infrastructure, coupled with its developer friendly SDKs and APIs, enabled the rapid construction of global, fiat-based markets, completely disrupting traditional commerce.

If you are already familiar with the data issues surrounding web2/web3 please feel free to jump to “The Architecture of Economies” section to see how Hyve attacks the problem.

The Web builds Markets: Efficient and Controlled.
We believe that the web pushed the envelope when it came to creating and supporting markets. A market is a venue for exchange, operating within a larger, established economic order ruled by banks, corporations, and governments. We are slaves to this established economy. It is not possible to build a new economy on the web, you simply participate more efficiently in the existing global fiat economy at best, or fool yourself at worst.

Web3, born from the promise of decentralization, introduced a new paradigm. You are in control of your money, your data, your presence, free from the chains of the establishment. When money became programmable on chains like Ethereum, liquidity became composable, and a true, parallel economic order arose. Protocols like Uniswap and Balancer didn't just create a market, they created an economy where value compounded through openness and shared, trustless infrastructure. This was the dream realized. 

Web3 builds economies: verifiable, self-reinforcing, and open.
The decentralized web, with its ability to compose liquidity, is uniquely geared towards building economies as opposed to markets.  However the battle is not won. In our opinion, freeing liquidity allowed economies to emerge, but these economies are still in their infancy. Builders and founders focus on new and exciting ways to improve the liquidity economy whilst a vast store of potential lies dormant right under their noses. Data. The web has long monetized data. They capture every aspect of our lives, every touchpoint, every sentiment. We are slaves to those who lord over our data. We decentralized because people demanded to have control over their assets, over their identity, to be sovereign over their digital lives.  It’s only fitting that data is going to be what ushers in the next generation of web3. Data has value, and we believe that value should not be extracted, but instead become the foundation of new, thriving web3 economies. 

The world’s most data-intensive protocols, from DePIN and RWAs to AI agents, still rely on centralized storage as they absolutely must have high-throughput, low-latency access to their data. They are generating petabytes of data, which are being siloed away into big cloud. This data is inaccessible, and therefore, composability is non-existent. Without composability, this data is doomed to exist forever as a siloed market, never reaching its full potential of becoming a thriving web3 economy. On the other hand, if those petabytes of data were to become accessible, verifiable and open,  we could imagine a future where protocols and dApps build on top of this foundational data, compounding its value and perpetuating innovation and accessibility.

This quiet captivity prevents markets from becoming economies. The difference is composability.

Composability is the difference between a single-entity market and a self-reinforcing economy.

When data is locked behind proprietary APIs and centralized clouds:

  • It is static.

  • It is siloed.

  • It is inaccessible.

  • It is wasted potential.

  • It is a market.


The Missing Layer: Agreeing on Data

When data is sovereign, verifiable, and instantly composable, it becomes the foundation of a thriving, self-reinforcing economy, parallel to the global fiat economy. In our opinion, composable data is going to jumpstart innovation in Web3 once again.

Today, the paradox is stark. Web3 builds trustless logic atop trusted, centralized storage. We have experienced a sharp rise in data-intensive dApps and protocols. Their logic, governance and settlement all occur on-chain, but there is no viable decentralized solution for the massive amount of data. These protocols require high-throughput, low-latency access. This forces them into the arms of centralized cloud storage, like AWS S3. Now web3 finds itself generating large amounts of valuable data, which it then silos away, snuffing out any potential for composability.

Take for example, a prediction market’s orderbook sits on a centralized database, while its settlement is on-chain. This is a contradiction masquerading as progress. 

This is not an issue of safety or alignment, it is an immense opportunity cost when abandoned at the data layer. Hyperliquid understood this. Instead of building a centralized off-chain orderbook, they decentralized the whole stack. Now anyone can access the orderbook from their own node, smart contract, or frontend, introducing composability and giving birth to new applications built atop the Hyperliquid chain. This is slowly turning it from just another perp exchange into an economy for trading.

The Hyperliquid playbook doesn’t translate to many of the high-performant, data-heavy protocols in Web3. They simply do not need a blockchain of their own. Yet, millions of dollars are spent on node incentives and complex tokenomics, but the core value, the data, is locked away. Why? Because the infrastructure is missing.

Data-intensive protocols need hot, sovereign, high-egress data. Data that can move quickly and freely without leaving the empowering embrace of decentralization.

Blockchain gave us consensus: We can agree on state.

Smart contracts gave us computation: We can agree on logic.

Hyve gives us the missing layer: We can agree on data.

Hyve is a real-time data fabric, designed for decentralized, data-driven economies. It is so much more than storage.

We believe that Web3 does not need another decentralized AWS S3. It is inherently incompatible with the creation of economies. 

What Web3 needs is a verifiable, performant, sovereign data layer where data flows like packets on the internet, and settles like transactions on the blockchain.


The Architecture of Economies

Real-time data demands a new normal. Data-intensive web3 protocols require high-throughput, low-latency, verifiable and open data, more than ever before. Hyve is engineered for this reality, a network capable of virtually limitless throughput and sub-second finality.

We reject the notion that Web3 is relegated to data markets. Web3 is ripe for data economies. We believe we should be sovereigns of our own data. We do not believe every byte must be copied across every node, which would choke the system. Instead, we built an architecture that breathes rather than bottlenecks:

Parallelism, Not Permission: Data in Hyve shards itself at the edge. Each blob is individually encoded, broadcast, and proven without any single node ever holding the whole. Chunks become proofs. Proofs become trust. This is how Hyve scales.

Speed is Sovereignty: Retrieval is where old networks fall apart. In Hyve, access is a game of speed, not privilege. Every node competes to provide the data first, with the fastest response winning a retrieval bounty. This creates Hyve Edge, a living CDN powered by incentive, where every cached byte is a heartbeat closer to the user.

Originless and Universal: In the centralized world, location defines control. In Hyve, content defines existence. A data blob is either available to all, or it doesn’t exist at all. It is universal by design.

A Layer for All: Hyve is not an L1 or an L2. It is a layer for all. It is designed to adapt to any chain, any ecosystem, and any token. Hyve is not a cost center. It is a composable economy of data. As ecosystems store more, they grow stronger, and the data layer becomes the value layer.

Hyve is the missing primitive for real-time infrastructure. Where AWS gives policies, Hyve gives proof. Every byte can be verified. That it exists, that it performs, and that it persists. Verification replaces trust, and transparency replaces faith.

Economic Alignment at a Protocol Level:
“Show me the incentives and I'll show you the outcome.” - Charlie Munger.

Hyve doesn’t angle to be another middleman for data storage and retrievals. We are offering a decentralized replacement for AWS S3. Hyve aims to obliterate the middleman and redirect traditionally extracted value to decentralized applications, chains and Web3 builders. This will be done in the form of Data Royalties, where a portion of data fees will be paid to the originator of the data itself.  Data and value remaining verifiable and composable is what this new economy will be built upon. 

The protocols exist and the infrastructure has arrived. Hyve isn’t early. Hyve is right on time.

Why Now It’s Possible: The Convergence

Every movement needs its moment and our moment is now. For years, the dream of decentralized computation, coordination, and data flow outpaced the infrastructure that could sustain it. Data-intensive protocols are the new normal. The pieces have finally aligned. The technology, the market, and the will are here.

The Rise of Data-Intensive Protocols: Massive Product Market Fit

Web3 is no longer focused on speculation. The focus is creation. Networks that move physical resources, process intelligence and generate data at scale. DePIN, AI/ML, prediction markets, RWAs, are the engines of the future. It is important to recognize that these types of protocols were not possible even five years ago. This is just the beginning. 

The sheer amount of data that these protocols generate requires centralized off-chain storage. Protocols attempt to build what portions they can on-chain (logic, settlement, governance) but they desperately need a data layer that can keep up with their ambition. The demand for high-throughput, low-latency, verifiable decentralized infrastructure has been proven. The writing has been on the wall, waiting for somebody to tackle the issue head-on.

The amount of data coming from these protocols is only going to increase as they gain traction. We believe that every new protocol, every new dApp that leads to another data market is doing a disservice to web3 and what we stand for. Composable data will allow them to reach their true potential, as thriving economies. Today, the product market fit for Hyve is undeniable.  

Why Now It’s Possible: The Emergence

Technical Breakthroughs in Synchrony and Scale

Web3 can finally sustain data at speed. Consensus no longer crawls, bandwidth is abundant, and cryptography has matured. Proofs can be constructed without replication, and nodes can validate without possession. The roadblocks we faced in bandwidth, latency, and trust have been conquered by intelligent and intentional design. We didn’t wait for the technology to catch up, we worked in parallel. Hyve has been building for years, following the research, following the technology and learning from the successes and failures of the protocols that have come and gone before. The architecture of new economies is now technically inevitable.

Symbiotic Staking Layer

Staking has evolved. Moving beyond economic security and into economic alignment. The Symbiotic Universal Staking Layer now bridges the gap between capital and utility. Liquidity to data. Validators are no longer simply securing chains; they are securing the flow. The same crypto-economic base that secures Ethereum can now secure Hyve. A symbiotic loop where activity and availability reinforce each other.

The Movement: Own Your Data

Over the next weeks, we will be sharing more about Hyve and what we have been cooking up. We wrote this piece because we want to include you. We stand at the last checkpoint of decentralization. We freed money, we freed compute, only data remains enslaved.

Whether you are a builder, investor, or validator, we want you to be a part of Hyve. Every dollar spent on AWS is value extracted from your ecosystems and every centralized API dependency is a bottleneck for your economy.

We’ve built Hyve because we believe in sovereignty and performance. Decentralization without performance is philosophy, performance without decentralization is servitude. We demand both. We will provide both. 

To Protocols and Builders:

Your data is your product. Every dollar spent on big cloud is value extracted from token holders. Every ETH staked in Hyve is value secured by the community. It’s time to own your infrastructure. If you were to calculate your annual cloud spend, stake that in ETH and then launch a sovereign cluster on Hyve, you would keep 100% of the data revenue vs paying your cloud provider.

Connecting to Hyve’s data fabric and publishing every outcome, every order, with sub-second latency, while DeFi protocols adjust risk based on your predictions, that is when the transition from a market to an economy begins.

To Investors and Node Operators:

The data layer is the last major infrastructure opportunity in crypto. Data routing will be the new mining. Stake ETH to run Hyve nodes and start earning from the flow of data. Start evaluating projects based on data sovereignty, not just token design. Support teams building economies, not just products.

The age of composable data has come. Let’s build it together. 

Welcome to Hyve. 

Welcome to the economy of everything


Disclaimer:

This content is provided for informational and educational purposes only and does not constitute legal, business, investment, financial, or tax advice. You should consult your own advisers regarding those matters.

References to any protocols, projects, or digital assets are for illustrative purposes only and do not represent any recommendation or offer to buy, sell, or participate in any activity involving digital assets or financial products. This material should not be relied upon as the basis for any investment or network participation decision.

Hyve and its contributors make no representations or warranties, express or implied, regarding the accuracy, completeness, or reliability of the information provided. Digital assets and decentralized networks operate within evolving legal and regulatory environments; such risks are not addressed in this content.

All views and opinions expressed are those of the authors as of the date of publication and are subject to change without notice.

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