The term cryptocurrency is very broad as there are more than 3000 cryptocurrencies on CoinMarketCap with a multitude of different structures, technologies purposes, and use cases. Some cryptos are relatively simple with the intent to be digital currencies, while others have smart contracts, dapp building capabilities, support interoperability, provide scalability, and so on.
While all of this diversification is great, it poses problems for interoperability. For crypto and blockchain technology to be successful, these technologies need to be able to communicate with one another and exchange information. They also need to be able to communicate with non-blockchain infrastructure and existing technologies.
An open crypto ecosystem where different blockchains and technologies seamlessly exchange information and benefit from one another is vital for the entire industry to flourish. This need for interoperability has been realized by many industry players, one of which is HyperCash (HC).
HyperCash, also known as Hcash is a “plug and play” blockchain that can easily interact with other blockchains and non-blockchains like DAGs to enable the exchange between coins and information.
“HCASH will create a new platform which is able to be 'Connected' to different blockchains, allowing value and information to circulate freely between networks, redefining the value of a blockchain.” — HyperCash website
In the following article, I provide a comprehensive and subjective look at HyperCash (HC) so that you can fundamentally understand what Hcash is and see the value proposition of HC. I delve into its unique characteristics, its history, purpose, partnerships, as well as its issues and controversies surrounding it.
By the time you’re done reading, you’ll fundamentally understand HyperCash and what sets it apart from other cryptocurrency projects. So buckle up and enjoy this comprehensive guide to understanding the crypto enabling interoperability – HyperCash (HC).
History of HyperCash
HyperCash is a cryptocurrency project based out of China and Australia. It was originally developed by Dr. Joseph Liu, Dallas Brooks, Andrew Wasylewicz and Khal Achkar who launched the project on October 2, 2017, and held an ICO on June 28, 2017. Since the project’s launch, HyperCash has expanded their team significantly and is now led by CEO Adam Geri.
Initially, HyperCash was named Hshare (HSR) and was launched as an ERC-20 token. Then, when the HyperCash blockchain launched in August 2018, Hshare tokens were swapped at a 1:1 ratio for the mainnet tokens known as Hcash (HC).
HyperCash (HC) Token Distribution
HyperCash currently has a max supply of 84,000,000 HC with a total and circulating supply of 44,408,498 HC. During the ICO in June 2017, HyperCash sold 25 percent of Hshare tokens (21 million HSR) where they raised 21,000 BTC (AU $52.89 million dollars). Also, before this ICO, 15 percent (12.6 million) HSR tokens were sold to private investors. As previously mentioned, these tokens were then swapped for Hcash (HC) tokens when the HyperCash mainnet went live in August 2018.
As for the rest of HyperCash’s tokens:
- 25 percent (21 million) will be created via Proof-of-Work (PoW)
- 25 percent (21 million) will be created via Proof-of-Stake (PoS)
- 5 percent (4.2 million) are reserved for the development team & Hcash fund
- 5 percent (4.2 million) are reserved for Hcash-DAO
Purpose of HyperCash (HC)
HyperCash aims to be a decentralized and open-source cross-platform cryptocurrency designed to facilitate the exchange of information between blockchains and non-blockchain networks. It is a new decentralized and distributed ledger system that will bridge the gap between blockchain-based or blockless systems based on directed acyclic graph (DAG) technology.
The purpose of HyperCash’s cryptocurrency “Hcash” (HC) in this new system is to reflect the value of goods or services objectively. The Hcash network can be connected to different blockchains such as Bitcoin or Ethereum and DAG networks such as IOTA and Obyte.
The Hcash platform/network is designed to be a sidechain compatible with all crypto networks, enabling the free flow of value and information between them. In order to provide crypto interoperability through side chains, the Hcash network is made up of two chains running laterally with each serving different functions within the ecosystem. The dual-chain system consists of the HyperCash (HC) main chain and the HyperExchange (HX) chain.
Both chains are necessary for blockchain and DAG interoperability and each of them serves different functions in the ecosystem:
The HyperExchange (HX) chain is derived from the main HyperCash chain and bridges communication between blockchains and DAGs. The HX cryptocurrency is not listed on other exchanges and used solely as a utility token in the HyperCash ecosystem.
Features of the HyperExchange chain include:
- Cross-chain transaction
- Smart contract
- Random Pool Proof of Multi-properties
- High efficiency
- Flexible transaction fee
- 100% Reserve
The HyperCash (HC) main chain helps to solve privacy and security issues prevalent in the current blockchain and DAG ecosystems. HC is the native cryptocurrency of the Hcash network and is generated through a hybrid of Proof-of-Stake (PoS) and Proof-of-Work (PoW) mining.
Features of the HyperCash chain include:
- Decentralized autonomous governance
- PoW+PoS hybrid mechanism
- Privacy-Preserving Protocols
- Post-quantum Signature Technology
HyperCash Issues and Controversies
HyperCash is an ambitious project with some very lofty goals. The team behind Hcash claims to have an answer for nearly everything plaguing blockchains and the project is extremely complex.
For instance, HyperCash claims to:
- Use both a blockchain and a DAG network that runs concurrently
- Use a PoW+PoS hybrid consensus mechanism
- Implement post-quantum lattice RingCT protocols, and ZK-Snarks to preserve privacy
- Deploy a decentralized community-driven autonomous governance model
- Support high-throughput smart contract functionality
While all of these features sound very attractive, many critics have their doubts that Hcash can actually pull it off.
In 2018, prior to the official launch of the Hcash mainnet, many people thought Hcash was a scam coin. This was due to numerous reasons:
- The HyperCash whitepaper is very generic, describing existing technologies but not describing how they will be implemented with Hcash.
- The Hcash GitHub had very little activity showing development.
- There didn’t seem to be a whole lot of community support aside from an occasional update on Medium or social media.
- There was very little activity on Hcash’s subreddit, which was odd seeing as Reddit is one of the most common places to see new and relevant project information.
Despite the controversies laid out above, Hcash did end up launching its mainnet in August 2018 and is still plugging along.
However, Hcash still suffers from very little activity on the project Github, has a quiet subreddit with little sense of community, has accomplished very little according to their roadmap, and the overall performance and viability of Hcash is largely unknown.
HyperCash Adoption, Products, and Partnerships
HyperCash doesn’t appear to have any real enterprise partnerships or adoption just yet. This could be because the network is still being heavily developed and the products are not quite ready.
According to the HyperCash website, the HyperExchange has been launched and classic public chains such as Bitcoin (including OMNI), Ethereum (including ERC-20) and Litecoin have been successfully connected. However, upon going to the HyperExchange website, it is not clear where this product is being used or how it can be used. The website is very poorly designed and there are no mentions of projects or companies utilizing HyperCash or the HyperExchange.
As for other HyperCash products, they include:
- Mobile Wallet: where user funds are stored in hot and cold multi-signature addresses on their original chain. The wallet also allows users to start mining HC directly from their phones.
- HC Autonomy: which is the platform behind the governance of the HCASH ecosystem. Through Autonomy, users can make proposals, which they can then track and discuss with other members of the community.
- HC Explorer: where users can track and dissect transactions on the HyperCash network.
- HC Omni Explorer: a block explorer for Omni transactions implemented on HyperCash
- HC Omni Wallet: a web wallet that aims to combine security, usability and multi-currency support.
As for HyperCash partnerships, the project has teamed up with international universities such as Monash University in Australia, Jiao Tong University in Shanghai, and the Polytechnic University in Hong Kong. HyperCash has partnered with these research universities to make Hcash safer, more efficient, decentralized, and scalable.
Additionally, HyperCash has partnered with the following corporate mining pools for the mining of Hcash (HC):
Also, HyperCash has received sizable investments from the following investment groups:
- Fintech Blockchain Group
- Blockchain Ventures
HyperCash has a promising vision of interconnected blockchains where value and information can seamlessly be transferred. On top of that, the project features an array of mechanisms, protocols, and technologies that require an incredible level of development and are difficult to implement.
Therefore, while Hcash looks promising on paper, its success and value will ultimately come down to implementation and adoption. As of right now, it’s not entirely clear how well Hcash is being developed and what progress has been made. If Hcash proves to be successful, it will be one of the greatest technical innovations in crypto.
What do you think about HyperCash (HC)? Is the project just vaporware or is the team building a viable cryptocurrency platform for interoperability? Let us know what you think in the comment section below.