KEYTAKEAWAYS
- Hedera’s Hashgraph Technology
Hedera replaces traditional blockchain with Hashgraph, offering high efficiency, low transaction costs, and carbon-negative operations. - HBAR’s Multifunctional Utility
HBAR powers the Hedera network by enabling transactions, smart contracts, and rewarding validators, with promising investment potential. - Future of Hedera
Hedera’s scalability, industry partnerships, and transition to full decentralization position it as a leading contender in DLT adoption.
CONTENT
Hedera (HBAR), a carbon-negative PoS platform powered by Hashgraph technology. Explore its unique features, tokenomics, and potential as a scalable DLT solution for Dapps and enterprises.
Hedera is a proof-of-stake (PoS) smart contract platform designed for cryptocurrency transactions and decentralized applications (Dapps).
It enables the creation and deployment of Dapps, gaining popularity for its various advantages, such as energy efficiency (carbon-negative), high speed, and enhanced network security.
These benefits are primarily attributed to its underlying Hashgraph consensus algorithm.
WHAT IS HEDERA?
Hedera, founded in 2017 by tech experts Leemon Baird and Mance Harmon, is a decentralized distributed network with a structure fundamentally different from Bitcoin and Ethereum but performing similar functions.
Hedera Hashgraph operates on a more efficient security and validation algorithm than those used in blockchain networks.
The uniqueness of Hedera lies in its implementation of distributed ledger technology (DLT) through Hashgraph instead of blockchain.
This provides a practical alternative to blockchain systems with several advantages:
- No mining required: Hashgraph technology eliminates the need for energy-intensive mining, minimizing environmental impact and enabling Hedera to be carbon-negative.
- Low transaction costs: Fixed transaction fees are only $0.0001 per transaction, unaffected by HBAR’s price fluctuations.
- High performance and throughput: Hashgraph achieves improved efficiency and processing capacity while maintaining the same level of security and anonymity as blockchain.
Hedera Hashgraph is currently the only open ledger based on Hashgraph technology, with HBAR being its native cryptocurrency.
As a pioneering project, Hedera provides detailed API documentation and code examples, enabling developers to create their own tokens and applications on the network.
Hedera offers three main services: Solidity-based smart contracts, consensus mechanisms, and token services.
In summary, Hedera is distinguished by its speed, energy efficiency (carbon-negative), and security.
These features have attracted partnerships with global tech giants like Boeing, Google, and IBM, which are also members of the Hedera Governing Council.
>>> More to read: How to Get Crypto Passive Income Easily?
WHAT IS HBAR? WHAT ARE ITS USES?
HBAR is the native cryptocurrency of the Hedera Hashgraph network and serves multiple purposes:
- Utility token: HBAR is used to pay for transaction fees and execute smart contracts, while also incentivizing node operators participating in network validation.
- Validator rewards: Validators are rewarded with HBAR for maintaining the network’s security.
- Investment value: As the Hedera network gains adoption, HBAR has attracted the attention of investors, who anticipate its value to increase with the network’s growth.
Additionally, Hedera’s adoption of the energy-efficient PoS mechanism over the energy-intensive PoW model appeals to environmentally conscious partners and investors.
$HBAR TOKENOMICS
HBAR has a maximum supply of 50 billion tokens, distributed according to a 15-year allocation plan:
- 23.9% for ecosystem and open-source development
- 22.26% for purchase agreements (early investors)
- 14.77% for network governance and operations
- 7.74% for initial development costs and licensing
The remaining 31.33% is unallocated and subject to usage decisions by the Hedera Governing Council.
Some HBAR tokens are stored in the Hedera Treasury, reserved for future staking rewards to ensure long-term network stability.
HOW DOES HEDERA HASHGRAPH WORK?
Hedera Hashgraph is based on the concept of a directed acyclic graph (DAG) from graph theory.
This structure ensures that once transactions are validated and recorded, they cannot be altered.
Hedera applies asynchronous Byzantine Fault Tolerance (ABFT) as its consensus mechanism, offering a faster and more efficient alternative to traditional blockchain cryptographic methods.
This mechanism makes Hedera compatible with smart contracts and allows developers to build Dapps that eliminate intermediaries, such as banks and brokers.
As a result, Dapps running on Hedera are more cost-effective, faster, and more secure. With Hashgraph consensus and governance, Hedera is highly scalable, aiming to become the first widely adopted Hashgraph-based DLT network.
>>> More to read: What is Proof of Stake (PoS)?
HEDERA CONSENSUS MECHANISM
Hedera Hashgraph uses an open-source, PoS-based distributed consensus mechanism built on Hashgraph, developed by co-founder Dr. Leemon Baird.
The mechanism was open-sourced on August 5, 2022. It provides high efficiency in bandwidth usage, processing up to 10,000 transactions per second (TPS).
Unlike first-generation PoW networks like Bitcoin, where a miner is selected to determine the next block, the Hashgraph network’s nodes reach a consensus on which transactions to include in the ledger.
Through gossip and governance voting, the network agrees on the legitimacy and timestamp of each transaction. Once validated, transactions are recorded with 100% finality.
FUTURE OF HEDERA | IS IT WORTH INVESTING IN?
Hedera is a public network designed to address the limitations of traditional blockchains.
Currently, Hedera’s mainnet processes over 1.4 million transactions daily, surpassing Ethereum.
Its applications span various industries, including healthcare, supply chain management, and finance, with frequent announcements of new partnerships and projects.
As Hedera moves towards full decentralization, its mainnet will become permissionless, allowing anyone to operate a node.
These developments, combined with its technical advantages and extensive use cases, position Hedera as a promising investment and a network to watch closely.
>>> More to read: Key Crypto Terms You Need to Know
