What is Hedera Hashgraph (HBAR)?
Hedera Hashgraph is a revolutionary public network, often described as the "trust layer of the internet." It empowers businesses and individuals to build powerful decentralized applications (DApps). The platform is engineered to provide a fairer and more efficient system, overcoming limitations commonly associated with older blockchain platforms, such as performance instability and slow transaction speeds.
The project was funded through an initial coin offering (ICO) in August 2018, with its mainnet becoming accessible to the public in September 2019. During this ICO, early investors had the opportunity to acquire the platform's native token, HBAR, at its lowest possible entry price.
The HBAR token serves two fundamental purposes within the Hedera public network. Primarily, it acts as the fuel that powers all Hedera network services. This includes executing smart contracts, facilitating file storage, and processing standard transactions. Secondly, it is integral to network security. Users can stake their HBAR tokens to help maintain the platform's integrity and security through a proof-of-stake consensus mechanism.
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Who Are the Founders of Hedera Hashgraph?
Hedera Hashgraph was co-founded by Dr. Leemon Baird and Mance Harmon. Dr. Baird is the inventor of the hashgraph consensus algorithm, the groundbreaking technology that underpins the entire Hedera network. His work focused on achieving a secure, fast, and fair consensus mechanism. Mance Harmon, a seasoned executive with experience in technology and cybersecurity, joined forces with Baird to commercialize and scale the technology. The project is governed by the Hedera Governing Council, a diverse group of leading global organizations from various industries, ensuring decentralized and stable governance.
What Makes Hedera Hashgraph Unique?
Hedera Hashgraph stands out in the crowded distributed ledger technology (DLT) space due to its unique consensus algorithm and performance metrics.
- The Hashgraph Consensus: Unlike traditional blockchains that use proof-of-work or proof-of-stake, Hedera utilizes the hashgraph consensus algorithm. This technology uses a protocol known as "gossip about gossip" and virtual voting to achieve asynchronous Byzantine Fault Tolerance (aBFT). This is considered the gold standard for security in distributed systems, ensuring high security without compromising speed.
- High Throughput and Low Fees: The network is capable of processing over 10,000 transactions per second (TPS) with extremely low, predictable transaction fees, making it suitable for enterprise-grade applications.
- Energy Efficiency: By eliminating the need for energy-intensive mining, the hashgraph consensus is incredibly eco-friendly, using minimal amounts of energy to secure the network.
- Fairness: The algorithm provides fair transaction ordering, meaning no individual node can manipulate the order of transactions or slow down certain transactions for their own benefit.
How Many Hedera (HBAR) Coins Are in Circulation?
HBAR has a fixed maximum supply of 50 billion tokens. The coins are released into circulation according to a predefined emission schedule managed by the Hedera Governing Council. This controlled release is designed to support the long-term stability and growth of the network. A significant portion of the total supply is allocated for supporting network operations, ecosystem development, and rewarding node operators. It's crucial to check a reliable data source for the most up-to-date information on circulating supply and emission rate.
How Is the Hedera Hashgraph Network Secured?
The Hedera network is secured through its patented hashgraph consensus algorithm, which is mathematically proven to be aBFT. This high level of security means the network can withstand malicious attacks as long as more than two-thirds of the nodes are honest. Network security is further enhanced through staking. HBAR holders can stake their tokens to network nodes. These nodes, run by members of the Hedera Governing Council and others, process transactions and maintain the network's state. Staking helps to decentralize the network and allows token holders to participate in its security while earning rewards.
Where Can You Buy Hedera Hashgraph (HBAR)?
HBAR is a popular digital asset and is available for purchase on a wide array of major cryptocurrency exchanges. These platforms typically allow users to buy, sell, and trade HBAR against other cryptocurrencies like Bitcoin or Ethereum, and often against fiat currencies such as the US Dollar or Euro. To get started, you would need to create an account on one of these exchanges, complete any necessary verification processes, deposit funds, and then place an order for HBAR.
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Frequently Asked Questions
What is the main use of the HBAR token?
HBAR has two primary uses. It is used to pay for network services like transactions, smart contracts, and file storage. It is also used for staking to help secure the network. Users who stake their tokens can earn rewards for participating in the network's consensus.
How is Hedera different from Ethereum?
While both support DApps and smart contracts, they use different underlying technologies. Hedera uses the hashgraph consensus for high speed and low fees, whereas Ethereum currently uses a proof-of-stake blockchain. Hedera also has a governed model with a council, while Ethereum is more community-driven.
Is Hedera Hashgraph truly decentralized?
Yes, Hedera is decentralized. Its governance is managed by the Hedera Governing Council, which consists of up to 39 diverse and leading organizations from around the world. No single member has controlling authority, and the council's role is to ensure the network's stability and decentralized evolution.
What does aBFT mean for security?
Asynchronous Byzantine Fault Tolerance (aBFT) is the highest form of security for a distributed system. It means the network can achieve consensus even if some nodes act maliciously or fail, as long as at least two-thirds of the nodes are honest. This makes Hedera highly resilient to attacks.
Can I run a node on the Hedera network?
Currently, permissioned nodes are run by members of the Hedera Governing Council. However, the roadmap includes plans to open up node operation to the wider public, moving towards a more permissionless model for certain node types in the future.
What kind of applications are built on Hedera?
The network supports a wide range of applications across industries. Common use cases include supply chain tracking, secure data logging, payments, tokenization of assets, and decentralized identity solutions, leveraging its high throughput and low cost.