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- 1 Hedra Hashgraph is a cryptocurrency network that serves as a platform on which anyone can transact and deploy applications.
- 2 It was created by computer scientist Leeom Baird and a technology executive Mance Harmon. Together they formed a company called Swirlds in 2015.
Swirlds, in turn, spun out an entity called Hedera which was renamed as Hedera Hashgraph. This will advance and govern a live network of Hedera using its technology.
Since 2018, Hedera Hashgraph has earned $124 Million from sales of its HBAR cryptocurrency. Hedera Hashgraph is launched as a private network and it plans to permit the entities to join the network before it is made public at a later date.
Hedera Hashgraph provides high transaction speed for HBAR which is its cryptocurrency. However, it allows only approved nodes to participate in deciding the transaction history. It limits the number of nodes involved in the main functions like high transaction speed, the Hedera Hashgraph can produce results quickly, reducing the possibility that changes to the state of transactions might later be made.
The Hedera team says that this gives businesses a needed assurance as they will be more confident in making the decision based on this data. The 2020 data shows that the idea has attracted many big companies such as Boeing, IBM, and LG to act as nodes within the network.
Hedera Hashgraph’s unique feature is called hashgraph which is a data structure for grouping the transactions. It claims to process more transactions, more affordably as compared to other blockchains.
Hashgraph is the protected algorithm where all nodes are persistently communicating their information with each other. It was initially designed for private use. Hedera Hashgraph is the first monotony of algorithms that is used in the public network.
To confirm that all the computers in the network agree on their transaction history, Hedera Hashgraph uses the consensus mechanism that is powered by two types of nodes. The consensus nodes confirm the transaction order and history while other ones are mirror nodes that pass this information to other stakeholders of the network.
Hedera is an open-source proof-of-stake network. When hbars are staked to network nodes, they have weighted the influence on the consensus for validating the transactions. This weighted voting makes it difficult and expensive for bad actors to maliciously affect consensus.
A limited number of nodes are used to determine the history of nodes so the Hedera model confirms that the transaction won’t be undone. This process makes it different from the other blockchains. This is the reason why Hedera Hashgraph offers features that combine the advantages of both public and private blockchain networks.
The Hedera Governance Council governs the Hedera Hashgraph. It is charged with running the consensus node which determines the transaction ordering. As per the data from 2020, 30 members sit in the council. This includes IBM, Google, and Boeing. The role of the council is to manage the software, vote, and confirm that funds are distributed correctly.
The point to be highlighted here is that the members of the council have limited time. They have space for up to two consecutive years with three years of maximum terms. The mainnet nodes are run by the members of the governance council. The Hedera team plans to open that up for anyone who wishes to operate nodes in the future.
About HBAR Cryptocurrency
The HBAR cryptocurrency is used to make any transactions on the Hedera Hashgraph. In other words, it can be said that this currency is used for operating any application. The network was launched in 2018 and the whole supply of HBAR token was created at the time of launch which was fixed at 50 Billion.
HBAR is used to pay transaction fees and protect the network from proof of stake attacks. It acts like a networking fuel. Developers use HBARs to pay for the network fees which include transferring HBARs, logging, and minting fungible and non-fungible tokens.
They have also planned for proxy staking through which the HBAR tokens will be distributed. In this way, any HBAR holder will be able to lock their cryptocurrency in special contracts. By staking HBAR with other nodes, users will gain the chance to earn the rewards. HBAR cryptocurrency is also used to pay the transaction fees in the network.
HBAR is a secure, stable, and efficient platform on which major companies can build blockchain applications. It is not alone to allure the corporations as other platforms like Ethereum, Ripple, and many more are also competing in the space.
The hedera network has incredible throughput – around 10,000 HBAR transactions per second without compromising security and stability and fairly low fees. The cost per transaction is around $0.0001. The HBAR transactions are executed within 4 to 5 seconds.
Developers and users can purchase hbars from third parties or exchanges that have been selected to integrate into the ecosystem. Once the user has hbars they can use it to purchase the goods and services and also to pay the transaction fees. Those who have hbars can stake them to the Hedera network node for a maximum of 6.5% APY.
HBAR is available in many exchanges for purchase. The list of exchanges having HBAR can be found in Coinmarketcap. The use of hash graph technology for its distributed open ledger makes it a good alternative to blockchains to implement open ledgers and support cryptocurrencies.
There is no mining involved with hash graph technology hence it is environmentally safe and it also makes it cost efficient. It is the only open ledger that uses hashgraph technology and HBAR is the only cryptocurrency that uses this technology right now.
Summary
Hedera Hashgraphs are built from acyclic graphs and these graphs help to create the data structures and flow diagrams. The distributed open ledgers use these graphs to prevent any change in the transaction made.
The Hedera hashgraph is built on the Hedera network like Ether is built on the
Ethereum blockchain. Using the Hedera Hashgraph network developers can make dApps albeit by paying transaction fees. This network does not have scaling issues and mining is not an energy guzzling activity.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
