HEDERA HASHGRAPH (HBAR)
WHAT IS HEDERA ?
Hedera is a public distributed ledger and governance system that was designed from the scratch to accommodate new and existing applications. Developers use Hedera Hashgraph’s network services to embed computational trust directly into their applications. Hedera is the most widely used, long-lasting, enterprise-grade public network for the decentralised economy, allowing people and corporations to build powerful decentralised apps (DApps). It is intended to be a more equitable and efficient system that overcomes some of the drawbacks of prior blockchain-based platforms, such as slow performance and instability.
WHAT EXACTLY DOES A HASHGRAPH MEAN AND WHAT MAKES IT UNIQUE ?
Hedera is unique in that it achieves the same result as the most popular public blockchains (such as Bitcoin or Ethereum), but in a faster and more energy-efficient manner, these benefits are attributed to the underlying hashgraph consensus algorithm and the global enterprise governing body, which currently owns and operates Hedera. Hedera is the only public ledger that uses hashgraph consensus, which is a faster and more secure alternative to proof-of-work consensus mechanisms. It efficiently validates transactions on the Hedera network while maintaining the highest security standards to prevent malicious attacks. Hashgraph technology is currently patented, and the only authorized ledger is Hedera Hashgraph.
Hedera Hashgraph has two founders: Dr. Leemon Baird and Mance Harmon. Hashgraph consensus is a DAG (direct acyclic graph) created in 2015. Hashgraph is a public and decentralised distributed ledger. However, it differs from blockchain in key respects, and it even offers some significant advances. Hashgraph’s stroke of brilliance was based on one of the quickest and most robust forms of basic human communication — gossip. We’ve all shared juicy news in one way or another, and we’re always amazed at how quickly rumours spread like wildfire. In fact, there’s no stopping it once the word gets out. Dr. Baird devised the gossip-about-gossip protocol behind the hashgraph algorithm.Unlike blockchain, which uses a Proof-of-Work protocol with miners sequencing data block by block, hashgraph employs a completely different network architecture or data structure called Directed Acyclic Graph or DAG.
This hashgraph technology enables it to outperform several blockchain-based competitors in important areas like as speed, cost, and scalability. Hedera transactions have an average transaction fee of $0.0001 USD and often complete in less than five seconds. Overall, Hedera Hashgraph promises to be able to handle more than 10,000 transactions per second (TPS), compared to 5–20 for most common proof-of-work (PoW)-based blockchains.
The public ledger is stored on mainnet nodes, which were initially administered by the Hedera Governing Council — the governing council now comprises Google, IBM, Wipro, Boeing, Tata Communications, IIT Madras, Deutsche Telekom, LG, and others. Mainnet nodes will be permissionless in the future, and anyone will be able to run them without alerting Hedera.
Hedera provides connectors for blockchain frameworks like as Hyperledger Fabric and R3 Corda, which combine the secrecy of a private network with the trust of a public network. Private apps can provide public verifiability and decentralised transaction ordering by linking permissioned blockchain frameworks to Hedera Hashgraph.
HOW SECURE IS THE HEDERA HASHGRAPH NETWORK ?
To keep its network safe, Hedera Hashgraph employs a new consensus technique called as Hashgraph consensus. This is accomplished through the use of a rotating governing council comprised of up to 39 extremely diverse groups from up to 11 different industries. These are in charge of directing the Hedera codebase, voting on platform decisions, and running the initial Hedera public network nodes.
Hedera employs a revolutionary sort of Proof-of-Stake (PoS) that allows HBAR users to stake their resources to aid in network security. Currently, all Hedera nodes are managed by Hedera or members of the governing council, however there are plans to transition to a permissionless system in the future.
Overall, Hedera’s security configuration ensures that it achieves “Asynchronous” Byzantine fault tolerance (ABFT), which means that it can guarantee the timing and order of a collection of transactions even if some data is delayed or lost.
WHAT IS THE CURRENT CIRCULATION OF HEDERA HASHGRAPH (HBAR) COINS ?
The overall quantity of the Hedera Hashgraph token HBAR, is limited to 50 billion HBAR’S. As of now February 2022, almost 18.09 billion were in circulation, accounting for roughly 36% of the total supply, and has a market cap of 3.9$ billion USD, currently trading at 0.21 USD at the time of writing this article.
The two project founders each get a coin award of 2 billion HBARs, which is equal to 4% of the overall supply, according to Hedera’s resources. These tokens have a six-year vesting period.
Other senior Hedera executives (who joined before 2018) get coin rewards ranging from 250 million to 300 million coins. These tokens will be vested over the course of a year, ending in December 2021. According to Hedera’s Economics Whitepaper (released in June 2020).
DOES HBAR PLAYS DUAL ROLE IN HEDERA PUBLIC NETWORK ?
The native cryptocurrency of the Hedera Hashgraph system is HBAR And has a fixed supply of 50 billion hbars. It was funded through an initial coin offering (ICO) in August 2018 and opened up access to its mainnet just over a year later in September 2019. During the ICO, investors were able to purchase the platform’s native utility token (HBAR) for the lowest feasible price. HBAR is the fuel that drives Hedera services like smart contracts, file storage, and regular transactions. Second, it is utilised to help protect the network, as HBAR users can stake their tokens to help keep the platform secure.
Hedera doesn’t have a traditional staking consensus mechanism, like Cardano or Tezos, where the network directly rewards stakers with newly minted coins. Instead, validating nodes collect a percentage of all of the transaction fees for a given period.
THE FUTURE OF HEDERA HASH GRAPH
Hedera is a promising public network that aims to address the shortcomings of the current public blockchains and distributed ledgers. Hedera is already being used by a number of companies and protocols, and the mainnet generates over 1.4 million transactions per day, surpassing the Ethereum blockchain. Supply chain management, healthcare, payments, and other industries are all served by these apps. There are numerous fascinating projects in the works, and new partnerships are revealed on a regular basis.
Hedera is currently permissioned, with mainnet nodes run by members of the Hedera Governing Council. As Hedera moves closer to complete network decentralisation, the mainnet will become permissionless, allowing anyone to run nodes.
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