Holochain: What Comes After Blockchain?
Disclaimer: cryptocurrency trading may be risky. When you decide to buy or sell any coin, it’s only your decision and you should realize potential consequences. In the following article, we just describe the project’s ideas so it can’t be considered as investment suggestions. Do your research and trade wisely.
Today, the Superorder team continues exploring blockchain 3.0 systems and other innovative crypto-focused concepts. This guide is fully dedicated to Holochain and its token called HOT. It’s the only representative of a unique type of distributed ledger technology (DLT) based on distributed hash tables (DHT).
Below. we talk about the basics, key timeline events, core architecture/ecosystem features, pros, and cons of Holochain. As well, we list our vision on HOT trading, as well as its suitability for investors. Of course, we try to be as honest and unbiased as possible. So, let’s begin with the basic stuff!
Holochain Basics
Holochain is a general name for the project that plans to become a global platform for decentralized/distributed applications, developers, and users. It utilizes a completely different architecture than blockchain analogs, e.g. Ethereum.
Here, it’s important to distinguish two systems:
- Holochain — the P2P open source framework for building applications.
- Holo — the distributed platform for hosting/running applications.
Holo consists of various hashchains — independent sequences unique for each node. Thus, users can launch their smaller chains, keep and record data, run apps, etc. Still, to interact with other nodes, the information should be validated via distributed hash tables. In this way, Holochain combines centralized and decentralized elements.
All nodes/devices in the network can work independently by synchronizing with other users whenever it needed. Via Holochain, developers create Holochain apps (hApps), run them on own HoloPort hardware or rent bandwidth from other HoloPort owners. End-users can access these applications using in-system currency — HoloFuel.
Holochain History and Key Events
It all started in the organization known as the MetaCurrency Project. Arthur Brock, the founder, was captivated by the idea of human power combined with humankind values. He tried to create a new system to enable more complex and optimal social patterns. Unlike Satoshi, he believed that users should be in the center of any system, not data.
As a result, Holochain appeared. Overall, it’s based on five key ideas:
- Biomimicry based on the architecture of ecosystems in nature.
- Focus on collaboration between all developers and users.
- Independence with which anybody can build own network.
- Rules and constraints that help participants to play the same game.
- The primacy of society over technologies and humans over data.
Being conceived around 2008, Holochain started its life as a 0.0.0 alpha version in 2017. From that moment, the team held several ICO rounds, presented various papers, ran dozens of meetings, and started production of own hardware. According to the roadmap, the testnet is in the closed alpha stage now. Somewhat later, the world will see the open alpha.
The most recent interest to Holochain was caused by two dev blog posts. The first one dated by October 8 is about HoloPort UI — the interface for node holders who can run independent chains, install hApps, interact with other nodes, and spend or earn tokens. Of course, it’s a demo only.
The second post is dated by November 5 and is focused on Holoscape. Developers announced the public alpha testing of this environment. They invited users to launch their applications to check out how the system works. It’s a good sign — the team actively prepares to launch the open testnet.
Holochain Major Features
- Agent-centric ecosystem principles. Users are the core value of Holochain. Anybody can run its own hashchain with full functions provided by the network. Anybody can build hApps and use them. Anybody can earn tokens. Still, participants should comply with general rules to keep a natural consensus.
- A unique DHT-based architecture. Using distributed hash tables and the concept of gossiping (not data but data about data), Holochain maintains secure and reliable validation. Moreover, it allows improving scalability with the growing number of users. For more insights, check the article about the Holochain structure.
- Decentralized Holochain applications. Codes, chains, and apps themselves are stored on the users’ devices. Developers can create anything, set rules, and agree on them with other participants. Because of a P2P connection, members often don’t need the Internet to exchange data. And apps are based on JavaScript and Lisp.
- HoloPort nodes and cloud power. The team is pre-selling its hardware systems that will act as physical nodes and computing elements in the global network. HoloPort devices are available in three versions with different power. Owners of them will be able to sell bandwidth while other users can rent it to run hApps.
- HOT tokens and HoloFuel. As for now, the project distributes ERC-20 HOT cryptocurrency — specific swappable tokens. After the official testnet/mainnet launch, holders will be able to exchange HOT to HoloFuel tokens in a 1:1 ratio. HoloFuel isn’t currency but in — system credit measure that can be used to build apps, use them, etc.
For more information on the structure, algorithms, and tokens, proceed to the project’s whitepaper or check out the beginners’ guide (it has wonderful illustrations).
Holochain Advantages
- A viable alternative to blockchain with a totally unique structure.
- Dozens of years in development with great team experience.
- Clear and well-known development tools like JS and Lisp.
- Potentially unlimited scalability and perfect decentralization.
- Rich GitHub with dozens of hApp examples.
- User-centric approach inspired by natural ecosystems.
Holochain Drawbacks
- Already launched alternatives like Hedera Hashgraph.
- Dependence on Ethereum, the main competitor.
- Failed deadlines with the alpha promised in Q4 2017 and mainnet — in Q4 2018.
- Lack of real functions available for a wide crowd.
- No interest for exchanges in HoloFuel credits.
- Unclear security measures due to unique architecture.
Holochain Price, Trading & Investing Tips
As for now, CoinMarketCap reports that HOT costs around $0.00096 per coin. It’s an extremely low price that started rising a bit earlier — after a long decrease ended in September. Holochain developers stir up interest by announcing new upgrades and demonstrating real functionality.
Nonetheless, you should remember that current HOT tokens aren’t the main currency of the project. After launch, developers will use HoloFuel — tokens with pure practical value for the network participants. It will be possible to exchange HOT to HoloFuel and vice versa but it’s still unclear how this exchange will affect the price.
That’s why we think that HOT tokens worth investing in if you’re a Holochain follower or just believe in the project. Keep some coins in your portfolio to convert them to HoloFuel and/or sell them at peak. For traders, HOT cryptocurrency may be interesting in a medium-term perspective as the price may continue surging.
Stay with us, learn new things, and don’t forget that we build Superorder for you! Also, clap & share if our Holochain analysis was useful. See you.
