Explore How Hedera Network Works and Benefits of the HBAR Token

Hedera is an enterprise-grade public network for the decentralized economy that allows individuals and businesses to create powerful decentralized applications (dApps). It is the most used, sustainable network.

The Hedera network is designed to be a fairer, more efficient system. It eliminates some of the limitations that older blockchain-based platforms face. It addresses problems that older blockchains face, such as slow performance and instability.

It was funded through an initial coin offering (ICO) in August 2018. After a year, in September 2019, it first launched open access to its mainnet. HBAR is the native token for Hedera. As part of the ICO, investors were able to purchase HBAR at the lowest possible price.

Dr. Leemon Baird and Mance Harmon founded Hedera Hashgraph.Dr. Leemon Baird is designated as the investor in the hashgraph distributed consensus algorithm. He currently works as the Chief Scientist of Hedera.

Before this, Baird had more than a decade of experience in various computer science and security roles. He has also worked as a senior research scientist at the Academy Center for Cyberspace Research. He is also co-founder and CTO at Swirlds Inc., a platform that builds decentralized apps (dApps).

Mance Harmon is the CEO of Hedera. He is a seasoned entrepreneur and has two decades of experience working as a technology executive at various firms. He is also co-founder and CEO of Swirlds, Inc.

Apart from the founders, the Hedera leadership team comprises more than a dozen individuals who have experience working in different industries.

The Hedera system has a structure that was created from scratch, particularly for the project. Older blockchains tend to use a consensus mechanism called proof-of-work (PoW) to validate transactions, while younger blockchains opt for a proof-of-stake (PoS) consensus mechanism. 

Hedera is based on a PoS model that is believed to increase the efficiency of transaction verification in the network. It provides a high level of security and protects the network from hacker attacks. Its ecosystem has the underlying hashgraph consensus transaction algorithm and the global enterprise governing body.

Hedera Hashgraph is a distributed ledger technology (DLT). As per the project website, Hedera offers other blockchains because it uses the hashgraph consensus algorithm. It aims to execute and process transactions faster, eliminate delays, and smooth out the transaction per second indicator. The hashgraph is claimed to be an upgrade in speed, transaction, cost, and scalability.

Consensus Service (HCS)

With HCS, clients can send messages to the network to negotiate consensus time stamping and order. In this case, the state is stored offline, and users can define privacy and access control.

Hedera Token Service (HTS)

With the help of HTS, token creation, and management are available to customers. It supports built-in tokenization.

Goals of Hedera’s hashgraph are to increase the speed of transactions. Moreover, the network is also focused on high-volume operations such as micropayments, data integrity, and tokenization.

Like the EVM, the Hedera network maintains a virtual machine that writes smart contracts in the Solidity programming language. Apart from this, Hedera offers a set of built-in KYC and AML checks.

Hedera is a form of distributed ledger technology. It is a hashgraph or algorithm, where users agree on the order in which transactions should be performed. Hedera is not completely a blockchain. It has distinctive characters and works differently. Using the hashgraph mechanism, all transaction branches are merged, no block equivalent is thrown away, and each is used to reach consensus.

One of the most prominent characteristics of the network is the Gossip-about-Gossip protocol. As per the Chief Scientist of the Network, within the system, nodes randomly transmit data about themselves to other nodes via hashgraph using the Gossip protocol.

In a short span, all nodes in a cluster become familiar with each other and then a certain data structure is formed. It consists of a payload of transactions, a timestamp, a digital signature, and hashes to the previous structure.

HBAR is the native token of Hedera that powers applications on the Hedera network. It is used to pay for network services, transaction fees, in-app payments, and micropayments.

Developers can use HBAR tokens to pay for network fees. It can work with smart contracts, file storage, and currency exchange. Additionally, HBAR is used to incentivize and pay network nodes.

Functions of HBAR

Gas Token

HBAR coins are used for making payments for different services on the network. It includes payments for logging data, managing NFTs and other tokens, and transferring coins within the network. The fees that are collected as payments are further used for compensating network nodes for storage, computation, and bandwidth.

Network Protection

HBAR coins could be used for staking on the network node to weigh the vote on transactions so that malicious participants cannot affect the consensus mechanism. This process, in turn, protects the network from cyber attacks, as bad actors have to stake or own one-third of the total supply of the coin to influence the consensus mechanism of the network.

These functions of the HBAR coin ensure a smooth operational structure within the Hedera network while facilitating participants to use the network for their specific requirements.

Conclusion: Uniqueness of Hedra Hashgraph

Unlike most other cryptocurrency platforms, Hedera Hashgraph isn’t built on top of a conventional blockchain. Instead, it introduces a completely novel type of distributed ledger technology known as Hashgraph.

Hedera Hashgraph has a decentralized governance system that is set apart. The governing council takes all critical decisions about pricing policy, software updates, and wealth management.

FAQs

Which is the best network platform to buy HBAR?

HBAR is a popular digital asset available to trade on several prominent exchanges, such as Binance, Bittrex, and Huobi Global.

What is the all-time high and all-time low for HBAR?

The highest price for Hedera was $0.569229, marked on September 15, 2021.

The all-time-low for HBAR is $0.00986111, marked on January 02, 2020.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.