Hedera Hashgraph (HBAR) stands as a unique and innovative player in the cryptocurrency landscape. Often referred to as the "trust layer of the internet," it is a public network enabling individuals and businesses to build powerful decentralized applications (DApps). Designed to overcome the limitations of older blockchain-based platforms—such as poor performance and instability—Hedera aims to provide a fairer and more efficient system. This guide delves into everything you need to know about HBAR, from its technology and founders to its market performance and future potential.
What is Hedera Hashgraph?
Hedera Hashgraph is not built on a traditional blockchain. Instead, it utilizes a novel type of distributed ledger technology known as Hashgraph. This technology offers significant improvements in speed, cost, and scalability compared to many blockchain alternatives.
Key Features of Hedera
- High Throughput: The network can process over 10,000 transactions per second (TPS), far exceeding the capabilities of popular proof-of-work (PoW) blockchains, which typically handle 5-20 TPS.
- Low Fees: The average transaction fee on Hedera is just $0.0001 USD, making it highly cost-effective for micro-transactions and high-volume applications.
- Fast Finality: Transactions achieve finality in under 5 seconds, ensuring quick and reliable settlement.
- Energy Efficiency: Its consensus mechanism is far more energy-efficient than proof-of-work, aligning with growing environmental concerns in the crypto space.
Network Services
Hedera provides several core services that empower developers and businesses:
- Token Service: Allows users to create and mint both fungible and non-fungible tokens (NFTs) with just a few lines of code.
- Consensus Service: Acts as a trust layer for applications or networks requiring secure and verifiable event logs.
- Smart Contracts: Offers tools for developers to build robust and efficient decentralized applications.
- File Storage: Provides a decentralized file storage service with features like proof of deletion, controlled mutability, and time-based file expiration.
Who Founded Hedera?
Hedera Hashgraph was co-founded by two visionary individuals:
- Dr. Leemon Baird: The inventor of the Hashgraph consensus algorithm. He serves as Hedera's Chief Scientist and has over a decade of experience in computer science and security roles. Dr. Baird is also the co-founder and CTO of Swirlds Inc., a platform for building DApps.
- Mance Harmon: A seasoned technology executive and entrepreneur with nearly 20 years of experience in the IT security industry. Harmon serves as Hedera's CEO and is also the co-founder and CEO of Swirlds Inc.
The leadership team comprises over a dozen individuals with distinguished careers in technology and business.
The HBAR Token
HBAR is the native utility token of the Hedera public network. It serves two primary purposes:
- Network Fuel: HBAR is used to pay for network services, including smart contracts, file storage, and transaction fees.
- Network Security: Users can stake their HBAR tokens to help maintain the integrity and security of the platform.
Tokenomics and Supply
- Maximum Supply: The total maximum supply of HBAR is fixed at 50 billion tokens.
- Circulating Supply: As of the latest data, the circulating supply is approximately 42.38 billion HBAR, representing about 84.76% of the total supply.
- Vesting: The project founders each received 2 billion HBAR (4% of total supply each), which are vesting over a six-year period. Other early executives also received tokens vesting until December 2021. According to the project's economics whitepaper, an estimated 17.03 billion HBAR was expected to be in circulation by 2025.
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How is the Hedera Network Secured?
Hedera employs a unique consensus mechanism called Hashgraph Consensus, a form of proof-of-stake (PoS). Its security model is managed by a Governing Council of up to 39 highly diversified organizations from across 11 industries. This council is responsible for directing the Hedera codebase, voting on platform decisions, and operating the initial nodes on the network.
This setup achieves what is known as asynchronous Byzantine Fault Tolerance (aBFT), the highest level of security for distributed systems. It guarantees the consensus order of transactions even if some data is delayed or lost.
While all nodes are currently operated by Hedera or the Governing Council, the project has plans to transition to a permissionless system in the future, further decentralizing the network.
Hedera Price and Market Performance
HBAR is a popular digital asset ranked among the top cryptocurrencies by market capitalization. Its price is influenced by factors such as overall market sentiment, network adoption, and developments within the Hedera ecosystem.
- Current Market Position: HBAR consistently ranks within the top #21 by market cap.
- Trading Volume: It boasts significant 24-hour trading volume, reflecting high liquidity and investor interest.
- Availability: HBAR is listed on major cryptocurrency exchanges, including Binance, Bittrex, and Huobi Global, with popular trading pairs like HBAR/USDT, HBAR/BTC, and HBAR/ETH.
Where to Buy HBAR
You can purchase HBAR on numerous reputable centralized and decentralized exchanges. It's always advisable to use well-known platforms with strong security measures. Common steps to acquire HBAR include:
- Creating an account on a supported exchange.
- Completing identity verification (KYC) procedures.
- Depositing fiat currency (like USD or KRW) or another cryptocurrency (like BTC or USDT).
- Placing a buy order for HBAR.
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Frequently Asked Questions (FAQ)
What makes Hedera different from blockchain?
Unlike traditional blockchains that use a sequential chain of blocks, Hedera uses a Hashgraph structure. This allows for asynchronous processing of transactions, leading to much higher speed, lower fees, and greater energy efficiency without sacrificing security.
Is HBAR a good investment?
As with any cryptocurrency, investing in HBAR carries inherent risks and requires thorough research. Its value is tied to the adoption and utility of the Hedera network. Consider factors like the project's technology, team, partnerships, and market position before making any investment decision.
How can I stake my HBAR?
You can stake your HBAR tokens through supported wallets and exchanges to contribute to network security and earn rewards. The process typically involves selecting a node to delegate your stake to within your wallet's interface.
What is the long-term vision for Hedera?
Hedera's long-term goal is to become the leading decentralized trust layer for the internet, enabling a new era of secure and efficient online applications for a wide range of industries, from finance to supply chain management.
Who is on the Hedera Governing Council?
The council comprises major global enterprises across various sectors, including technology, finance, and manufacturing. These members help govern the network and ensure its stability and decentralized nature.
Can Hedera be used to create NFTs?
Absolutely. Hedera's Token Service is specifically designed to make it easy for developers and creators to mint and manage both fungible tokens and NFTs efficiently and at a very low cost.