Hedera is a widely utilized, eco-friendly, enterprise-level public network pivotal for the decentralized economy, enabling both individuals and companies to develop robust decentralized applications (DApps).
This network is crafted to be a more equitable and efficient system, addressing some of the challenges older blockchain platforms face, such as sluggish performance and instability.
Hedera was funded via an initial coin offering (ICO) in August 2018 and opened access to its mainnet a little over a year later, in September 2019. During the ICO, investors were able to acquire the platform's native utility token, HBAR, at the most favorable price.
HBAR serves a dual purpose within the Hedera network.
Primarily, HBAR acts as the fuel that drives Hedera's services, including smart contracts, file storage, and standard transactions. Additionally, it is instrumental in securing the network as HBAR holders can stake their tokens to help maintain the platform's integrity.
Hedera (HBAR) is the native digital currency of Hedera Hashgraph, a platform that positions itself as an alternative to conventional blockchain technology, with a focus on speed, efficiency, and security.
Traditional blockchains typically use consensus mechanisms like proof-of-work (PoW) for transaction validation, while newer ones have shifted to proof-of-stake (PoS). The Hedera Hashgraph system has a unique structure crafted specifically for the project. It leverages a PoS model that aims to enhance transaction verification efficiency, bolster security, and safeguard against cyber attacks. Its ecosystem relies on the hashgraph consensus algorithm and is overseen by a global enterprise governing body.
Hedera Hashgraph is a form of distributed ledger technology (DLT). As outlined on the project’s website, Hedera stands apart from other blockchains by employing a new consensus mechanism called hashgraph. This is designed to expedite and execute transactions swiftly, reduce latency, and optimize the TPS (transactions per second) metric. Hashgraph is touted as an advancement in terms of transaction speed, cost-effectiveness, and scalability.
Key services offered by Hedera:
Consensus Service (HCS). HCS allows clients to relay messages to the network, negotiating consensus timestamps and sequence. Here, states are saved offline, with users having control over privacy and access.
Hedera Token Service (HTS). Through HTS, users have the ability to create and manage tokens, with built-in tokenization support.
Hedera’s hashgraph aims to accelerate transaction speeds and is particularly suited for high-volume operations like micropayments, data integrity, and tokenization.
Much like the Ethereum Virtual Machine (EVM), the Hedera network hosts a virtual machine that executes smart contracts using the Solidity programming language. Additionally, Hedera provides built-in KYC and AML checks.
Technically speaking, Hedera is a type of distributed ledger technology. It uses a hashgraph, or consensus algorithm, where users agree on how to sequence transactions. However, Hedera deviates from typical blockchain design. With hashgraph, transaction branches are merged rather than discarded, all being used to achieve consensus.
A standout feature of the network is the Gossip-about-Gossip protocol. As explained by Dr. Leemon Baird, Hedera’s creator, nodes within the system transmit data about themselves to others randomly, employing the Gossip protocol. Over time, nodes in a cluster become acquainted with each other, forming a data structure comprising transactions, timestamps, digital signatures, and hashes linked to previous structures.
HBAR is Hedera’s native token powering applications on the network. It is used for paying network services, transaction fees, in-app payments, and micropayments. Developers can pay network fees using HBAR tokens for activities such as handling smart contracts, file storage, and currency exchange. HBAR also incentivizes and compensates network nodes.
Hedera Hashgraph is distinct with its decentralized governance model. A Governing Council oversees critical decisions on pricing, software updates, and asset management.
Who Are the Founders of Hedera Hashgraph?
Hedera Hashgraph was founded by Dr. Leemon Baird and Mance Harmon.
Dr. Leemon Baird is acknowledged as the inventor of the hashgraph distributed consensus algorithm and currently holds the position of chief scientist at Hedera.
Before establishing Hedera Hashgraph, Baird accumulated over ten years of experience across various computer science and security roles and served as a senior research scientist at the Academy Center by Cyberspace Research. He is also a co-founder and CTO at Swirlds Inc., a platform for creating DApps.
Meanwhile, Mance Harmon serves as the CEO of Hedera and is a seasoned technology executive and entrepreneur. With about 20 years of experience, he has held executive positions in several major firms, many within the IT security sector. Like Dr. Baird, Mance Harmon is also a co-founder and CEO at Swirlds Inc.
Alongside the founders, the leadership team at Hedera includes over a dozen individuals, many of whom have had notable careers.
What Makes Hedera Hashgraph Unique?
Hedera Hashgraph sets itself apart from most other cryptocurrency platforms by not utilizing a traditional blockchain. Instead, it introduces an entirely novel distributed ledger technology known as a Hashgraph.
This innovation allows Hedera to outpace many blockchain-based solutions in critical areas like speed, cost, and scalability. With transaction fees averaging only $0.0001 USD and achieving finality in less than five seconds, Hedera Hashgraph claims to handle upwards of 10,000 transactions per second (TPS), surpassing the approximate 5-20 TPS typical of many proof-of-work (PoW) blockchains.
The platform delivers several key network services, including:
* A token service that enables users to effortlessly configure and mint both fungible and non-fungible tokens (NFTs) on Hedera with minimal coding.
* A consensus service providing a trust layer for any application or network requiring a secure, verifiable transaction log.
* Smart contract tools for developers to build effective and efficient decentralized applications.
* Decentralized file storage services with features like proof-of-deletion, controlled mutability, and time-based expiration.
How Many Hedera Hashgraph (HBAR) Coins Are There in Circulation?
The Hedera Hashgraph token, HBAR, has a capped total supply of 50 billion units. By January 2021, nearly seven billion were in circulation, representing about 14% of the total supply.
Hedera regularly releases reports detailing the schedule for unlocking new HBAR tokens, which are available for viewing online.
According to Hedera’s documentation, each of the project’s founders receives a coin grant of two billion HBARs, equating to 4% of the total supply each, with these tokens being vested over six years.
Other senior executives at Hedera, who joined before 2018, have coin grants ranging between 250 million and 300 million, vested over a period concluding in December 2021.
Based on Hedera's Economics Whitepaper from June 2020, it's projected that around 17.03 billion HBAR will be circulating by 2025, which equals 34% of the total supply.
How Is the Hedera Hashgraph Network Secured?
Hedera Hashgraph employs a unique consensus mechanism known as Hashgraph consensus to ensure network security.
This involves a rotating governing council of up to 39 diverse organizations from up to 11 different sectors. They play a role in directing the Hedera codebase, voting on platform policies, and operating the initial nodes on the Hedera public network.
Hedera utilizes an innovative form of proof-of-stake (PoS) that permits HBAR holders to stake their tokens to help secure the network. Currently, Hedera nodes are managed by Hedera itself or its governing council members, but there are future plans to transition to a permissionless system.
Overall, Hedera's security framework ensures it achieves "asynchronous" Byzantine fault tolerance (ABFT), which guarantees both the timing and order of transaction sets, even if some data is delayed or lost.
Where Can You Buy Hedera Hashgraph (HBAR)?
HBAR is a sought-after digital currency available for trading on several major exchange platforms like Binance, Bittrex, and Huobi Global.
Common HBAR trading pairs include HBAR/USDT, HBAR/BTC, and HBAR/ETH, along with several fiat trading options like HBAR/USD, HBAR/KRW, and HBAR/INR.
For further details on purchasing cryptocurrencies with fiat money, refer to our comprehensive guide.
