What is Hedera Hashgraph (HBAR)? Project Breakdown

What is Hedera Hashgraph (HBAR)? Project Breakdown

By Swapzone | Swapzone Blog | 25 Jul 2022


Hedera Hashgraph is a third-generation distributed public ledger infrastructure that uses a patented consensus algorithm called hashgraph. As a third-generation blockchain, it aims to resolve fundamental flaws such as scalability and interoperability. The project touts itself as the most used, sustainable, enterprise-grade public network for the decentralized economy. 

Aside from being a lightning-fast blockchain, Hedera is dedicated to carbon-negative network operations, which promotes environmental sustainability. Importantly, the blockchain protocol is designed for quick, efficient, and secure applications that make use of the hashgraph's efficiency. This page will give you in-depth information about this blockchain protocol, including how it works and its value. You will also get to know about Hedera’s future growth.

 

Tokenomics

There are presently 21.08 billion HBAR tokens in circulation in June/22, with a total supply of 50 billion Hedera tokens. The Hedera token has a finite supply of 50 billion. At the time of writing, Hedera’s market cap is $1.5 billion.

 

Who Created Hedera Hashgraph?

Mance Harmon and Dr. Leemon Baird created the Hedera Hashgraph in 2018. Harmon, the CEO, is a veteran technology executive and entrepreneur with over 20 years of expertise in leadership. Dr. Leemon, on the other hand, is Hedera's chief scientist and the creator of the Hedera public network based on the hashgraph algorithm. The duo met in the United States Air Force and have been working together for over 20 years.

Prior to the creation of Hedera, Baird gathered more than a decade of experience in multiple computer science and security positions. He previously worked at the Academy Center for Cyberspace Research as a senior research scientist.

 

How Does Hedera Hashgraph Work?

Hedera uses hashgraph consensus, which is a faster and more secure alternative to traditional blockchain consensus mechanisms. Traditional blockchains like Bitcoin use the proof of work mechanism.

Hashgraph Consensus Service

The hashsgraph consensus works by including each transaction container into the ledger, making it more efficient than typical blockchains. In addition, hashgraph consensus offers the highest level of security to prevent malicious intrusions. The hashgraph enables all nodes to reach an agreement on which transactions should be included to the ledger. To ensure network stability, designated council members operate the nodes.

 

Hedera Governance 

Hedera is led by a worldwide governing council of up to 39 world-leading, diverse organizations. The council includes notable organizations like Google, Boeing, the Development Bank of Singapore, IBM, and LG, among others. Each member of the group is dedicated to network innovation, stability, and continued decentralization. Additionally, the governing council is in charge of designing governance structures as well as hosting and managing network nodes. The committee is also in control of the software that nodes use. Members have an equal vote when it comes to the direction of Hedera's software and services. Also, the governance framework of Hedera ensures that no single firm or node operator has undue influence over the network.

 

Why Does HBAR Have Value?

The Hedera network provides a number of use cases that are critical to the ecosystem. Payments, fraud mitigation, and data compliance are some examples of application cases. The blockchain system can also be used to manage and swap tokenized assets.

Furthermore, the market value of HBAR is affected by a number of factors, which may cause its price to fluctuate. Some of these variables include institutional participation, new upgrades and developments, and exchange listings. The market price of the HBAR token swings often due to the considerable fluctuations in the cryptocurrency market.

 

Why Use HBAR?

Hedera Hashgraph employs a distinct sort of consensus process, distinguishing it from conventional blockchains. The technology enables it to improve essential aspects of blockchain, such as speed, cost, and scalability. Also, Hedera has an average transaction fee of $0.0001, and they execute in less than five seconds. The blockchain protocol promises to be capable of processing over 10,000 transactions per second, which is higher than Bitcoin and Ethereum.

Hedera Hashgraph also provides important network services like token service and consensus service. Users can easily setup and mint both fungible and non-fungible tokens using the token service. The consensus service, on the other hand, serves as a layer of trust for any application or network. Hedera also offers decentralized file storage and smart contract services.



Hedera Coin: HBAR

The native, energy-efficient token of the Hedera public network, HBAR, serves two main functions. HBAR tokens serve as the fuel for the Hedera network while also protecting it from harmful attackers. As the network's fuel, developers use HBAR to provide network services such as HBAR token transfers. HBAR tokens are also utilized as transaction fees and network node remuneration.

In terms of network protection, HBAR is utilized to safeguard the Hedera network via proof of stake consensus. When reaching consensus, Hedera coins are staked or proxy staked to a network node to influence votes on transactions. An attacker would find it tough and pricey to interrupt the network due to weighted voting with Hedera's token. To cause a disruption, the exploiter would need to own and stake more than one-third of the total supply of HBAR.

 

Hedera Staking

Staking is possible on the Hedera network. It enables HBAR holders who do not run a node to stake their tokens on the node of another user. Earnings are therefore divided between the owners of the proxy staked HBAR and the node operator. In this scenario, the proxy staker receives a small portion of the transaction fees. Moreover, every node in Hedera's network is dependent on the quantity of HBAR in that node. You can stake your HBAR on Binance and Crypto.com.

 

Hedera Hashgraph’s Future Growth

Hedera has had a lot of success so far, and it's being adopted by leading firms like Google and LG. Startups, major organizations, producers, and consumers can all use Hedera. As the enterprise blockchain industry still lacks many platforms, this means a lot of strong applications and future potential for Hedera. The blockchain protocol also includes an incentive mechanism that may aid in the network's development.

Furthermore, Hedera's future roadmap includes additional network improvements. The improvements will enhance Hedera's performance, scale, ecosystem, network, and decentralization, all of which should benefit the network.

Popular pairs to convert Hedera Hashgraph

HBAR to BTC HBAR to ETH HBAR to LTC HBAR to BNB HBAR to BCH HBAR to USDT HBAR to THETA HBAR to XMR HBAR to TRX HBAR to BSV HBAR to DASH HBAR to ZEC    

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