Hedera Hashgraph is a cryptocurrency network that offers a platform for transacting and deploying decentralized applications (dApps). Unlike other projects, a group of businesses are tasked with overseeing the workings of the underlying Hedera software.
Founders Lemon Baird and Mance Harmon launched the platform in 2018. The network is currently run and backed by some of the biggest corporations in the world. It also leverages the proof-of-stake consensus algorithm, therefore it’s capable of achieving fast transaction times and lower fees. The network also uses far less energy compared to other cryptocurrencies.
The cryptocurrency network stands out in part because it enables high transaction speeds on the networks. It does so by allowing a set of approved nodes to take part in determining transaction history. By restricting the number of nodes in any given transaction, Hedera Hashgraph achieves a high level of finality.
Hedera Hashgraph is based on a unique data structure developed by Dr. Baird called the Hashgraph. The structure allows the network to process transactions faster and cheaply compared to others. The patented algorithm comes with nodes that are consistently communicating with one another.
The connection enables the sharing of information with one another. The Hashgraph consensus mechanism also ensures that all computers connected to the network agree on the transaction history, as well as transaction ordering on the network.
Meanwhile, Mirror nodes are responsible for relaying information on the network to different stakeholders. The groups of nodes that run the Hedera distributed ledger are operated by high-profile companies such as Google and IBM.
As it stands, the Hedera network can handle more than 10,000 transactions per second. It also promises some of the fastest settlement and confirmation times of under-five seconds. The average transaction cost on the network is just $0.0001 cent.
Hedera Hashgraph’s lack of technical limitations enables the development of dApps capable of overcoming the problems of scaling on a distributed ledger.
Hearo.Fm is a popular decentralized application . The application acts as a global marketplace that allows music artists to sell and showcase their music directly via a decentralized platform. Hedera Hashgraph has enabled the use of micropayments for streaming music on the application.
Additionally, Hedera Hashgraph is one of the fastest, cheapest, and most decentralized notaries. In this case, it can be relied upon to confirm ownership identity possession as some of the endless use cases. The fact that the network can be used to execute transactions at some of the highest speeds and lowest costs makes it ideal for various tasks. The network currently performs over 6.5 million transactions a day
Hedera Hashgraph is also emerging as a true competitor to traditional payment networks such as Visa and Mastercard. Its ability to process more than 100,000 transactions per second makes it an interesting prospect in the digital payment space where real-time and cost-effective transactions are in high demand.
Additionally, Hedera Hashgraph operates a distributed file storage system whereby people can store all sorts of data in one decentralized ledger for easy access.
HBAR is the native token that powers the Hedera Hashgraph network. The token acts as a medium of exchange through which all transaction costs are settled on the network. For instance, developers use HBAR tokens to pay for network services such as the creation of applications on the distributed network.
Additionally, it acts as a mode of payment for fees. Whenever people transfer coins to other addresses or manage fungible and non-fungible coins, they incur fees in HBAR tokens. Anyone who logs some data on the network also incurs fees in the HBAR token.
At inception, the team behind Hedera Hashgraph unleashed 50 billion HBAR tokens. By capping the number of tokens that will ever be in supply, the team created means by which HBAR value will continue to increase.
For instance, increased use of the Hedera Hashgraph network to facilitate transactions and create applications triggers significant demand for HBAR tokens to settle fees on the network. Increased usage of the network only amounts to strong demand for the tokens.
The limited supply amid skyrocketing demand should continue to trigger an increase in HBAR value.
Hedera Hashgraph has achieved a string of milestones since its inception. For instance, in 2018, the network successfully raised $120 million in its first-ever token sale. The money is currently being used to offer cryptocurrency as a service, therefore, supporting micropayments.
In addition, parts of the funds have gone towards the development of a distributed field service that apps can use. The service is also of great help in enabling contracts, including smart contracts.
Additionally, Hedera Hashgraph has achieved significant milestones in its bid to enable cost-effective and fast transactions. It currently handles in excess of 10,000 transactions a second