Hathor Blockchain Report

A scalable and easy-to-use blockchain for digital assets

The Hathor Network is a digital platform for financial transactions and contracts, offering a unique blend of high scalability and decentralization.

This creates an optimal environment for various use cases that require efficiency, long-term security, and resistance to censorship.

The network’s architecture is designed to address scalability, centralization, and spam issues, standing between Bitcoin and IOTA’s solutions. It operates with a high degree of uptime (99.99%) without central coordination, ensuring fair distribution of resources through decentralization.

The network also offers merged mining to capitalize on the security and computational power of the Bitcoin network, allowing Hathor’s ledger to benefit from Bitcoin’s miner network. Wallets for the Hathor Network are available for Mac, Windows, and Linux.

Key Takeaways

• High scalability and decentralization.
• Simplified smart contracts for ease of use and safety.
• Custom Tokens enhances utility and demand for HTR token, driving network adoption.
• The leadership team and advisors with diverse expertise contribute to Hathor’s growth.
• HTR token with a unique DAG+Block structure, zero fees, and scalable tokenization platform.
• Focus on code transparency and security, particularly with Nano Contracts.
• Strong social media presence and user satisfaction.
• Project Funding with a combination of pre-mined and mined tokens since inception.
• Potential driven by unique architecture, user-friendliness, and focus on Nano Contracts and dApps.

Introduction to Hathor

Key differentiators of the Hathor Network include:

• Original source code is written in Python by developers, some of whom have been involved in cryptocurrency research since 2011.
• A novel ledger architecture that combines Directed Acyclic Graph (DAG) and blockchain data structures.
• Scalability without any central coordinator or single point of failure.
• Feeless and quick transactions.
• Proof of Work (PoW) mining with perpetual, low emission of native HTR tokens.
• Merged mining with Bitcoin and Litecoin, which doesn’t negatively affect Bitcoin mining but provides additional incentives by awarding HTR tokens.
• The ability to create custom tokens with a few clicks fully functions within the network’s technical framework.
• Nano-contracts, a secure and straightforward approach to smart contracts. Developed through over 7 years of academic research, with heavy scientific scrutiny and testing.

The Hathor Network addresses the blockchain trilemma, which involves balancing scalability, security, and decentralization, by integrating a chain of mined blocks within a DAG (Directed Acyclic Graph) of transactions.

This architecture allows for security during periods of low transactions per second, while the DAG structure excels as the number of transactions increases.

The network’s design aims to function correctly regardless of the transaction volume, thereby attempting to provide a solution to the blockchain trilemma by maintaining decentralization and security without compromising scalability.

Key features of this blockchain include:

Custom Tokens: Users can create digital tokens with customized specifications, functioning independently of the price of HTR tokens and suitable for various purposes like financial participation, loyalty points, or digital asset ownership.

Nano Contracts: A simplified version of smart contracts that allows participants to create rules for fund distribution, with the inclusion of Oracles to incorporate real-world information into the network.

Nano-contracts

Nano Contracts are crucial to the Hathor Network for several reasons:

1. Simplicity and Security: They are a simplified version of smart contracts designed to be easier to use and safer, allowing for a straightforward configuration and deployment of contracts on the network.
2. Integration with Hathor’s Wallet: Nano Contracts have been integrated into the Hathor Headless Wallet, enhancing the wallet’s functionality and enabling support for Nano Contract operations.
3. Transparency: Parts of the Nano Contracts code have been made public, with a commitment to open-source, which enhances transparency and allows for community scrutiny and contributions.
4. Economic Review: There has been an economic review for Nano Contracts that provided valuable recommendations, which indicates a focus on the economic impact and sustainability of using these contracts within the network.
5. Enabling dApps: With the support for WalletConnect in Hathor’s mobile and desktop wallets, the ecosystem is preparing for the launch of Nano Contracts and dApps that will be built on the network, signaling a future expansion of services and applications.

The development and focus on Nano Contracts suggest Hathor’s commitment to providing secure, user-friendly, and economically viable smart contract solutions, which are fundamental for the adoption and growth of blockchain applications.

How do nano-contracts compare with Ethereum smart contracts?

Nano Contracts on Hathor are designed to offer a simpler, safer, and more efficient alternative to the more complex smart contracts seen on Ethereum.

While Ethereum’s smart contracts are highly powerful and customizable, they can be complex and prone to bugs due to the Turing-complete language that allows for any computable function.

Hathor’s Nano Contracts are not Turing-complete, reducing complexity and potential security risks.

This streamlined approach makes Nano Contracts more accessible, potentially leading to wider adoption for users who require simpler contract structures.

However, this simplicity also means that Nano Contracts might not support the full range of functionalities that Ethereum’s smart contracts do, which can execute almost any programmable task provided there is gas to fund the computation.

Ethereum’s ecosystem is more mature in terms of developer tools, documentation, and community support, which has led to a vast array of decentralized applications (dApps).

In summary, Nano Contracts could be a better fit for users and developers looking for ease of use and security in straightforward applications, while Ethereum’s smart contracts cater to those needing complex, programmable functionalities.

The adoption of Nano Contracts will depend on the specific needs of users and developers within the Hathor ecosystem and the broader blockchain community.

Custom Tokens

Custom tokens on the Hathor Network can serve multiple purposes, such as:

1. Financial Participation: They can represent a financial stake in a company, similar to stock ownership.
2. Loyalty Programs: Tokens can be used as mileage or loyalty points for specific stores or networks.
3. Voting Mechanisms: They can facilitate voting systems, where token ownership correlates with voting rights.
4. Ownership of Digital Goods: They can signify ownership over digital goods, like website domains or virtual assets.

The ability to create custom tokens is important for Hathor because it enables users to leverage the Hathor Network for a wide range of applications, enhancing the utility and demand for the HTR token. This versatility is a significant aspect of Hathor’s value proposition, aiming to drive adoption and increase the network’s activity and token economy.

Team Overview

The leadership team of Hathor Network consists of:

• Volker Kuebler: CEO, who leads the team.
• Marcelo Salhab Brogliato: Co-founder & CTO, responsible for the technical vision and direction of the network.
• Pedro Ferreira: Co-founder & Senior Engineer, contributing to the engineering and development of the platform.
• Jan Segre: Co-founder & Senior Engineer, involved in the core development efforts.
• Rodrigo Rosa: COO, overseeing the operations of the network.
• Diego Guareschi: CMO, managing the marketing strategies of Hathor Network.

The advisors of Hathor Network, who assist in making the most important decisions, include:

• Yan Martins: Co-founder, providing guidance based on his experience and knowledge.
• Eric Nichols: Co-founder & Tech, offering expertise in technology-related decisions.
• Christian Aranha: Specialized in Crypto-design, advising on cryptographic and security aspects.
• Fernando Carvalho: Focuses on Business Development, helping to steer the project’s commercial strategy.
• Bernardo Quintão: Also involved in Business Development, contributing to the network’s market growth and expansion strategies.

These individuals come with varied backgrounds and expertise, contributing to the overall growth and development of Hathor Network.

Tokenomics

• Symbol: HTR
• Decimal Precision: 2 digits (0.01 HTR)
• Technology: Utilizes a unique DAG+Block structure
• Consensus Mechanism: Proof-of-Work (PoW), using the sha256d algorithm and merged mining with Bitcoin
• Max Supply: Unlimited, with a small and decreasing inflation rate
• Circulating Supply: There were 248,442,344 HTR as of November 2023
• Transaction Fee: Zero
• Block Time: 30 seconds
• Reward Halvings: Annual halving for the first three years
• Mining Rewards: Start at 64 HTR per block in the first year and halve each year, eventually stabilizing at 8 HTR per block from the fourth year onward.

Hathor tokens (HTR) are valuable due to the unlimited use cases, tokens, and products that can be created on the Hathor Network.

The network provides a scalable tokenization platform where tokens can be created easily, with no transaction fees and fast transaction times.

Hathor has a unique economic model for tokenization, requiring token creators to deposit HTR which can be withdrawn later.

Mined tokens reward miners for securing the network, and there’s an annual halving of rewards for the first three years, then stabilizing at 8 HTR per block from the fourth year.

Pre-mined tokens were created at genesis and are used to support the ecosystem’s development and growth.

The circulating supply includes mined and released pre-mined tokens. As of November 2023, it was approximately 248,442,344 million HTR.

The inflation rate after January 2023 is set to remain below 1.1% and will decrease each year.

Token Utility

The utility of the Hathor (HTR) token encompasses several aspects within the Hathor Network:

• Zero-Fee Transactions: HTR allows for zero-fee transactions within the network, which can encourage widespread use and adoption.
• Token Creation: HTR is used when creating new custom tokens on the network. To mint custom tokens, token creators need to lock a proportional amount of HTR, which they can later retrieve if the custom tokens are melted.
• Network Security: Mining HTR tokens rewards miners for contributing to the network’s security, with the reward halving annually for the first three years, then stabilizing.
• Governance and Utility in Products: HTR tokens are used in various products and services offered by Hathor, including tokenization services and nano contracts.
• Ecosystem Development: Pre-mined HTR tokens are allocated to support the ecosystem’s growth, including funding for research, development, and community incentives.

The token’s design aims to solve major gaps in blockchain adoption, such as scalability and high transaction costs, making it a key component in Hathor’s vision for accessible and scalable tokenization.

Whale Wallet Analysis

The combined total holdings of the top 10 addresses as of November 2023 is 23,725,496.63 HTR.

They hold approximately 9.55% of the total circulating supply of HTR tokens as of November 2023.

Trading Overview

• Current Price: As of the latest data, HTR is priced at approximately $0.0652 with a 24-hour trading volume of around $415,485.
• Market Cap: The market capitalization of Hathor is $16,268,491, placing it at rank #813 among cryptocurrencies.
• Daily Trading Volume: The daily trading volume shows a 4.40% increase from the previous day, indicating a recent rise in market activity.
• All-Time High and Low: HTR’s all-time high was $2.45 nearly two years ago, with the current price being -97.30% lower. Its all-time low was $0.036307014001, recorded 28 days ago, with the current price 80.60% higher than this low.
• Fully Diluted Valuation: The FDV of Hathor is estimated at $56,933,968, assuming the maximum supply of HTR tokens is in circulation.
• Price Performance: HTR has seen a price increase of 29.80% in the last 7 days, outperforming the global cryptocurrency market, which is up 7.00%.
• Community Sentiment: The community sentiment is positive, with a bullish outlook on HTR as indicated by user votes.

Technical Overview

The Hathor Q3 2023 report indicates that there have been efforts to enhance the transparency and security of their code, particularly with Nano Contracts.

During this period, they made notable progress by releasing parts of the Nano Contracts code to the public, demonstrating a commitment to open-source principles.

Additionally, an economic review for Nano Contracts was completed, which led to valuable recommendations for the project.

However, the report does not explicitly mention a formal security audit of the Hathor codebase.

Social Awareness and Engagement

Hathor’s social awareness and engagement appear to be strong and active with around 63k followers on x.com, 7890 Telegram members, and 8660 Discord members.

The use cases of Hathor have received positive feedback, with users rating them highly and expressing satisfaction.

On social media platforms like Twitter and Telegram, there is evidence of an active and engaged user base.

Although there is an opportunity for improvement in content production, the feedback received is a valuable asset for enhancing the user experience.

Demographically, the Hathor community is diverse, with a significant presence in Europe and a user base that primarily consists of traders and enthusiasts.

There’s recognition that while there are areas such as integrations, partnerships, and technical updates that could be improved, the overall community sentiment is one of eagerness and support for Hathor’s success.

Project Funding

The Hathor Network has been funded through a combination of pre-mined tokens and mined tokens since its inception.

Initially, one billion pre-mined HTR tokens were created at the genesis block on January 3rd, 2020.

These pre-mined tokens are subject to a burn, vault, and lock schedule detailed in Hathor’s token economics documents.

The pre-mined tokens support the ecosystem’s growth, including funding for research, development, and community incentives.

The mined tokens, obtained through the Proof of Work (PoW) process, provide ongoing incentives for network security.

This dual approach of pre-mining and mining has allowed Hathor to sustain and fund its operations and development from the beginning until today.

Hathor Wallet

The Hathor native wallet has undergone significant improvements, especially with the new backend enhancing loading speeds and preparing the wallet for new features. Here are some key features:

1. New Multisig Wallet Features: Support for creating, minting, and melting custom tokens, as well as initializing a multisig wallet without a seed.
2. Hardware Security Module (HSM) Integration: The Hathor wallet has been integrated with an HSM to enhance security by safeguarding private keys and performing critical cryptographic operations within a secure environment.
3. WalletConnect Support: Implementation of WalletConnect protocol in mobile and desktop wallets, which allows wallets to communicate with other applications, facilitating interactions with dApps and signing transactions.

These developments are part of Hathor’s continuous efforts to improve user experience and security, making the wallet a versatile tool for interacting with the network’s features, including Nano Contracts and custom tokens.

Final remarks

The Hathor Network showcases considerable potential due to its unique architecture that combines blockchain and DAG, offering scalability, zero-fee transactions, and ease of creating custom tokens.

These features position Hathor as a user-friendly platform for various applications, from financial services to digital collectibles.

Adoption could be driven by its simplicity for users and developers, feeless structure, and the capacity to support high transaction volumes.

The network’s focus on Nano Contracts and dApps further expands its use cases. However, adoption will also depend on broader market trends, regulatory developments, and the network’s ability to maintain security and decentralize effectively while scaling.