In the world of blockchain and smart contract-based networks, Ethereum has long been the dominant player. Since its launch, it has maintained a leading position in the industry.
However, Hedera Hashgraph is emerging as a formidable competitor, offering a compelling alternative to Ethereum and other established networks.
Built on Hashgraph—a leaderless, faster, lower-latency, and more secure alternative to blockchain—Hedera provides a unique value proposition. It offers fixed low fees denominated in US dollars, eliminating concerns over fluctuating gas costs.
Additionally, according to a study by University College London, Hedera is the most energy-efficient among all major public blockchains.
What Makes Hedera Stand Out
Hedera’s architecture is designed for high performance and sustainability. Its consensus algorithm enables high throughput with minimal energy consumption, making it an environmentally conscious choice for developers and enterprises.
Through a discussion with Elaine Song, Chief Strategy Officer at the HBAR Foundation, key insights emerged about Hedera’s growing appeal among creators and builders. She highlighted the platform’s technical advantages and strategic vision.
Song expressed both excitement and caution regarding the recent surge in cryptocurrency adoption. While she believes digital assets have the potential to transform the financial industry, she also acknowledges significant risks, including regulatory uncertainty, market volatility, and security challenges.
Core Services and Flexibility
Hedera offers three core services that provide greater flexibility compared to Ethereum:
- EVM-Compatible Smart Contracts, allowing developers to port Ethereum-based applications seamlessly.
- Token Service, which enables the creation and management of custom tokens.
- Consensus Service, providing verifiable timestamps and event ordering for decentralized applications.
These services allow creators to build a wider range of applications with lower transaction costs and higher efficiency.
Governance and Trust
Another distinguishing feature is Hedera’s governance model. The network is managed by up to 39 global organizations and leading academic institutions—including IBM and Dell—which operate the initial nodes and approve code deployments.
This council-based structure ensures transparency and trust, offering users confidence that the network is maintained by reputable institutions—a contrast to many anonymous or decentralized governance models in the space.
Incentivizing Development Through the HBAR Foundation
To encourage creators to build on Hedera—whether they are migrating from Ethereum, Solana, or other chains—the HBAR Foundation offers grants and funding opportunities. Eligible projects can receive support of $100,000 or more.
Since its inception, the Foundation has funded 225 projects and allocated over $400 million in grants. Its mission is to expand the Hedera ecosystem and support innovation within the network.
The Foundation also welcomes multi-chain or interoperable solutions, reflecting a commitment to collaborative growth rather than isolated development.
Investment Approach and Due Diligence
Song emphasized that the cryptocurrency market is still nascent and rapidly evolving. She advised investors to exercise caution and perform thorough due diligence before committing to any project or asset.
At the HBAR Foundation, the team adopts a conservative investment strategy. They focus on supporting projects with strong fundamentals, proven track records, and viable business models.
Each applicant undergoes rigorous business and technical evaluation. There is no specific funding threshold—grant sizes are determined based on strategic alignment with Hedera’s core verticals and industry needs.
Turnaround time for grants varies. Some approvals take only a few weeks, while others may involve up to six months of collaboration with applicants.
The Future of Hedera and Blockchain Adoption
Looking ahead, Song is optimistic about the potential of blockchain technology to revolutionize various industries. However, she stresses the importance of staying informed, adhering to compliance standards, and remaining vigilant in the face of ongoing market changes.
As competition within the blockchain ecosystem intensifies, it remains to be seen how much market share Hedera will capture in the coming years. Nevertheless, the network is gaining traction rapidly and is positioned to compete directly with Ethereum and other leading platforms.
For creators and developers, Hedera represents a promising blend of performance, affordability, and institutional credibility.
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Frequently Asked Questions
What is Hedera Hashgraph?
Hedera is a public distributed ledger that uses Hashgraph consensus instead of traditional blockchain. It offers high speed, low fees, and energy-efficient operations suitable for enterprise and consumer applications.
How does Hedera differ from Ethereum?
While both support smart contracts and dApps, Hedera uses a different consensus mechanism, has lower and more predictable fees, and is governed by a council of well-known organizations. It also consumes significantly less energy than Ethereum.
What can developers build on Hedera?
Developers can create decentralized applications, tokenize assets, deploy smart contracts, and use Hedera’s consensus service for auditable event logs and data verification.
Is Hedera environmentally friendly?
Yes. Independent studies have shown Hedera to be one of the most energy-efficient public networks, making it a sustainable choice for blockchain applications.
How can I apply for an HBAR Foundation grant?
Developers and startups can apply through the HBAR Foundation website. Applications are evaluated based on innovation, feasibility, and alignment with Hedera’s ecosystem goals.
Can Hedera interact with other blockchains?
Yes. Hedera supports interoperability and encourages multi-chain development. Its EVM compatibility also makes it easier to bridge assets and data from Ethereum.