Harmony is a platform that seeks to achieve scaling while maintaining decentralization and security in blockchain networks. It was launched in 2019 as part of Binance Launchpad’s Initial exchange offering to help bridge scalability and decentralization in blockchain projects.
How does it work?
The layer-2 solution runs on top of the Ethereum blockchain. Powered by sharding, the scaling solution establishes separate groups of validators on blockchain networks. In return, it allows the validators to approve transactions and new blocks simultaneously at low latency. Adding more shards should enable the network to solve any congestion issues once the network gets fully utilized in the future.
Harmony leverages the proof of stake mechanism to process transactions on the network. Under this model, nodes put up tokens as collateral to stand a chance of being selected to verify transactions. The nodes are picked up randomly to validate the transactions.
The layer-2 solution currently processes up to 2,000 transactions per second, much higher than Ethereum’s 14 a second. Plans are underway to get the solution to process up to 10 million transactions per second.
Its ability to process up to 2,000 transactions per second and the use of proof of stake validation gives Harmony an edge over Ethereum, which is often bogged down by congestion issues. In addition, the network comes with some of the lowest gas fees.
Additionally, Harmony stands out partly because it allows data sharing across multiple blockchain networks. Late last year, it launched a bridge dubbed Horizon that allows cross-chain interoperability with Ethereum. Consequently, assets can be transferred across all networks powered by the Ethereum blockchain.
Cross-chain interoperability is one of the features that has great potential in enhancing cross-border payments by making it easy to exchange cryptocurrencies for one another. Additionally, it has enabled bridges with other chains such as Binance.
Harmony is also proving to be an ideal solution for speeding up non-fungible tokens transactions while retaining security protocols on the Ethereum blockchain.
Harmony ONE Token
ONE is the native token that powers the Harmony network. The cryptocurrency acts as a medium of exchange through which transactions are settled. It is used to pay for mining rewards, gas fees, transaction fees, and voting on the network. Holders are rewarded block rewards for staking the ONE token and keeping the system running.
|Total supply||13,376,877,338 ONE|
|Circulating supply||11,816,362,338 ONE|
Unlike other cryptocurrencies, ONE has an unlimited supply. What this means is that there is no cap on the total number of ONE token that will ever be in circulation. Currently, there are about 11.82 billion ONE tokens in circulation, with a total supply of 13.38 billion.
The token accrues its value on the fact that sharding on the network results in opportunities for developers to come up with decentralized applications. The development and use of dApps on the network trigger transaction fees that must be paid in ONE token.
Harmony is a unique layer 2 blockchain solution that seeks to speed and enhance the validation of transactions on blockchain networks. By relying on the sharding process, it’s been able to reduce the validation times, allowing the network to process up to 2,000 transactions per second. The network is also powered by the ONE token, which acts as a medium of exchange.