Hedera (HBAR) is a completely open-source, public network and governance body designed to build and manage decentralized applications. Hedera uses the Proof-of-Stake consensus mechanism in a unique way.
The Hedera network offers three main services to developers: Solidity-based smart contracts, consensus mechanism and token services. Hedera is unique in that it is incredibly fast, energy efficient (carbon negative) and secure. These advantages of Hedera are based on the hashgraph consensus algorithm.
The Hashgrap algorithm allows Hedera to perform similar functions as blockchains such as Bitcoin (BTC) and Ethereum (ETH) in a very different way. The hashgraph technology on which Hedera is based can be seen as an alternative to blockchain technology. Hashgraph is designed to provide a more efficient distributed ledger infrastructure than blockchain technology. A hashgraph network can provide the same level of security and decentralization as a blockchain network, with better performance and lower costs.
Hedera is currently the only hashgraph network in the world. HBAR coin, which is used to pay transaction fees on the network, is the only hashgrap coin.
Brief history of Hedera (HBAR) coin
Hedera (HBAR) emerged when American computer scientist and former computer science professor Leemon Baird invented the hashgraph distributed consensus algorithm. Baird, who previously served in the US Air Force, founded a company called Swirlds in 2015, which holds the patents for hashgraph technology.
Baird launched the Hedera project in 2017 by forming an administrative team and finding important investors. The project was opened to the public in March 2018. Then Hedera published its website, its cryptocurrency HBAR coin and its whitepaper; formed the board of directors. The board consists of a number of companies tasked with running consensus nodes in the Hedera network. They are also responsible for approving changes to the project, ensuring assets are allocated correctly, and maintaining the legal status of the network.
Today, Hedera’s board of directors includes giant companies such as Boeing, Deutsche Telekom, DLA Piper, FIS WorldPay, Google, IBM, LG, Magalu, Nomura, Swirlds, Tata Communications, University College London and Wipro.
HBAR coin statistics
HBAR coin is a cryptocurrency with a maximum supply. The maximum supply of HBAR coin is determined as 50,000,000,000 HBAR. According to the Hedera whitepaper, it is estimated that approximately 17.03 billion HBAR coins will be in circulation by 2025.
Hedera (HBAR) whitepaper
The first whitepaper of the Hedera (HBAR) project was published in 2018. The whitepaper was later updated in 2020. You can access the Hedera whitepaper by clicking here.
What makes the Hedera (HBAR) project special?
Hedera is unique because it is the only secure public cryptocurrency project that is not based on blockchain technology. This is both the strength and weakness of the public ledger and the HBAR coin.
Although the source code of Baird’s hashgraph-based network is publicly available, the algorithms are still patented. The Hedera network is the only licensed public ledger based on hashgraph technology.
Consensus rules in blockchain technology require that blocks eventually settle on a single, longest chain agreed upon by the community. If two blocks are created at the same time, the network nodes will eventually decide to continue one chain and the blockchain will discard the other. In this case, the blockchain may be forked. In this respect, blockchain is like a growing tree whose branches are constantly being cut except for one.
In the hashgraph algorithm, every transaction container is included in the ledger, none of it is discarded. For this reason, it is claimed that hashgraph technology is more efficient than blockchain. All branches continue to exist forever and are brought together to form a single whole.
Hashgraph networks are not subject to scaling issues, which is the biggest problem of blockchain networks. According to Hedera, Hashgraph transactions are safer, faster and cheaper than their blockchain counterparts.
Hedera says its mainnet currently processes more than 4.5 million transactions per day. The current mainnet is limited to a maximum of 10,000 transactions per second, but according to Hedera, the capacity of the network could be infinite thanks to a sharding mechanism. HBAR users pay a $0.0001 transaction fee. Verification of transactions takes 3 to 5 seconds. Not to mention that only 0.00017 kWh of electricity is required for each transaction. This figure is 885 kWh for Bitcoin transactions and 102 kWh for Ethereum transactions.
HBAR Coin Project
The cryptocurrency of the Hedera network is HBAR coin. HBAR coin is used to pay transaction fees on the network. HBAR coin is also staked on network nodes to provide a weighted voting system to verify transactions.
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