edera is a decentralised distributed ledger and Proof-of-Stake network that was founded by Leemon Baird in 2017. Later, in 2018 Hedera Hashgraph managed to raise a whopping $120 million in its initial token sale which was dedicated specifically to providing cryptocurrency as a service to support micropayments.
In 2019, the launch of the Hedera mainnet went live with the mission to create the most energy-efficient and secure network, without using the power of the blockchain.
The network is built from scratch and completely unique as it uses its very own consensus mechanism called Hedera Hashgraph. Blockchains like Bitcoin, Ethereum, and the BNB Chain use the Proof-of-Work/Proof-of-Stake consensus mechanisms.
How does the Hedera Hashgraph work
As mentioned above, Hedera does NOT use blockchain technology whatsoever and instead uses a technology called Directed Acyclic Graph, also known as a DAG.
Well, what is a DAG and how does it work?
A DAG can be very confusing to understand, so I will break it down in the simplest way possible.
It is simply a data structure, different to blockchain technology but is another form of Distributed Ledger Technology (DLT). There are no blocks in a DAG structure, instead, a DAG is a network of individual transactions linked to multiple other transactions and for new transactions to be added, they must be placed on top of the older ones.
In some ways, a DAG is far more superior to blockchain technology as it is more efficient at processing transactions and storing data. There are now many protocols starting to utilise the power of DAG technology.
Hedera’s Hashgraph is capable of achieving the same or even better results than major blockchains. Not only that, earlier this year Hedera announced that their mainnet will become EVM compatible.
Hedera Hashgraph Upgrade to EVM (Ethereum Virtual Machine)
The upgrade to integrate Ethereum Virtual Machine (EVM) is a huge move for Hedera and will definitely see an increase in users and developers choosing to build on their network.
EVM compatibility allows existing solidity code to be ported from other blockchains and will optimise it for the Hashgraph technology.
Why would they want to move their smart contract to Hedera?
Here are a few reasons:
- Ethereum has roughly 15 million gas in one block, whereas, Hedera has 15 million gas per second.
- Every smart contract on Hedera Hashgraph is carbon negative, which in today’s world is extremely important.
- Smart contracts on Ethereum and other blockchains usually have unpredictable gas fees which can vary, all the time. Hedera on the other hand guarantees the same gas fee cost in the amount of USD, every time and the transaction is paid in HBAR.
It is clear that even though the Hedera public ledger network is proven successful, they still want the network to have full access to the largest EVM-compatible blockchains and protocols.
Hedera Hashgraph Governance and Partnerships
It may surprise you to know that the Hedera network is run and fully governed by some of the largest corporations in the world, such as Google, LG, Ubisoft Boeing and many others!
The 39 corporations/organisations that own and govern the network own nodes that run and facilitate the network. For example, LG’s nodes have processed over 1.5M transactions!
Hedera’s governance council runs the network in a completely decentralised manner, with nodes set up all around the world, and are all dedicated to innovating and securing Hedera’s future.
Similar to other decentralised governance blockchains or protocols, Hedera will raise proposals that would improve the network and each member of the governing council will vote and give their input.
How Does Hedera Work?
Hedera is made up of five sections that communicate with each other to allow transfers of value, creation/bridging of smart contracts, data transfers and much more!
- Smart Contracts - which are used to deploy or execute decentralised applications.
- HBAR - is the native cryptocurrency of the network and is used to facilitate transactions and as the governance token.
- File Service - is used for file storage and provides options such as create, update, append, delete and more.
- Token Service - is used to create, burn, transfer, mint, and delete tokens or can create token fees etc.
- Consensus Service - is used to maintain a fast and secure consensus with any decentralised application on the network.
The Hedera network is capable of facilitating over 10,000 transactions per second, which is incredible. Let’s compare Visa which is capable of processing 1,700 TPS or Bitcoin which can handle just over 3TPS…
Users can expect ultra-cheap transaction costs, roughly costing $0.0001 worth of the Hedera native token, HBAR. The transactions will also be processed in 3-5 seconds, whereas Ethereum transactions will cost roughly $20 and take 5x longer to process!
Hedera Ecosystem
The ecosystem is vast and forever growing. There are currently over 137 deployed applications and over 110 different cryptocurrencies! Here are some that we know of or have caught our attention:
Follow this link to Explore the full Hedera Hashgraph Ecosystem.
The Hedera Hashgraph Mission
Hedera focuses on real-world problems that can be solved by utilising their superior technology. That is why they focus on specific use cases, such as:
DeFi
Access, integrate or build DeFi protocols, whether that’s decentralised exchanges, borrow & lending protocols, bridges and so much more!
NFTs
Build, Create, Mint, Buy and Sell a wide range of NFT collections and even marketplaces!
Payments
Utilise HBAR or your own cryptocurrency as a means of exchanging (payment) securely and with competitively low transaction fees!
Identity
Utilise and manage a decentralised identity with superior privacy and security features.
Sustainability
Corporations, businesses and protocols can build, deploy and access various sustainability solutions due to Hedera’s low-energy network!
Decentralised Logs
Data is key and thanks to Hedera, developers can create cheap and scalable logs of data, track products in a supply chain, secure sensitive user data, build a DAO and so much more!
How To Buy Hedera Hashgraph HBAR
For those looking to buy Hedera HBAR, we recommend using one of the centralised exchanges below. From there, you can send your HBAR tokens to a hardware wallet or native Hedera DeFi wallet, also explained below.
Centralised Exchanges
The HBAR token is currently available on pretty much every centralised exchange. Here are our recommendations with some juicy sign-up bonuses!
- Binance - The most popular CEX in the world
- ByBit - EARN UP TO $30K in DEPOSIT BONUSES
- BitGet - Trade on BitGet and receive 0% Deposit Cashback + $5,000 DEPOSIT BONUSES
- Coinbase - Spend $100 and Get $10 back!
- Cryptocom - Official Fifa 2022 World Cup Sponsor
It is always recommended not to store your crypto on a centralised exchange due to the various risks it may hold. That is why we recommend using a hardware wallet or a secure DeFi wallet.
DeFi and Hardware Wallets
If you need help, here’s a step-by-step guide to setting up a Hedera Hashgraph Hashpack wallet.
How To Get Started on the Hedera Hashgraph (HBAR) Network?
To simply get started on your Hedera journey and join a constantly evolving ecosystem, you will first need to obtain $HBAR tokens from one of the Centralised Exchanges (CEX) listed above.
Next, you will need to set up a wallet compatible with the network. You can check the full list by visiting this link.
As we mentioned above, you can follow the Hashpack wallet tutorial which has been created by a member of the AltCryptoTalk Team.
Once you have your HBAR tokens in your CEX and you have a decentralised wallet set up, then you must send your HBAR tokens from the CEX to your Hedera wallet.
After you have your HBAR tokens in your DeFi wallet, you are then ready to explore and interact with any application on the network!
Happy hunting.
Conclusion
In conclusion, Hedera is clearly designed to be globally adopted as it proves to be able to facilitate inferior amounts of transactions per second with such low costs and has the backing of many industry leaders.
The network processes over 920K transactions per day with over 1.36 million users already connected to the network and to be honest, with the backing it has, Hedera has serious potential of attracting millions of new users to Crypto!
At the time of writing, the HBAR token is hovering at a price of $0.03718 with an incredible market cap of $937M, which ranks HBAR as the 39th largest cryptocurrency by market cap. Hedera has seen an ATH of $0.57 and reached a market cap of $6.8B.
Hedera has the ability to be a Top 10 token and the next bull run could send HBAR up the ladder, very quickly…
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