What is Hedera (HBAR)?
Hedera (HBAR) is a decentralized public network that provides a platform for building decentralized applications (dApps) and providing architectural support to undertake various business transactions with security and scalability features. It is a unique distributed ledger technology that provides a fast and predictable platform for developers to build and deploy applications eliminating the pressure to handle operating system and infrastructure-related issues.
Hedera Consensus Service (HCS)
Hedera Consensus Service (HCS) is the main feature that makes Hedera a unique blockchain. It uses hashgraph technology, which provides a consensus mechanism. This mechanism is based on a directed acyclic graph data structure. In hashgraph, the data flows through nodes in unique directions, providing a high level of throughput.
The consensus mechanism implemented in Hedera is called Asynchronous Byzantine Fault Tolerance (aBFT). It's a consensus algorithm aimed at making the network more secure and improving transaction speed. With aBFT, the network is less prone to attacks from adversaries who aim to stop the consensus process. Additionally, aBFT is optimized for low latency and high throughput transactions, making it ideal for business and industrial applications.
HBAR Token
The HBAR token is the main cryptocurrency on the Hedera network. It has various use cases that make it an essential part of the ecosystem. Some of the use cases include:
- Gas for Transactions: HBAR serves as gas on the Hedera network, used to pay for every transaction made on the network.
- Staking: Users can stake HBAR and participate in network governance, earning more HBAR as a reward for their participation.
- Identity Verification: The token provides a mechanism to verify identity, where users provide their public keys and state their identity when registering on the network.
HBAR Tokenomics
The maximum supply of HBAR is 50 billion. When Hedera launched in 2019, an initial supply of 10 billion HBAR was created. New HBAR tokens are released every month at a fixed rate of 1.5% of the previous month's total supply. The release rate reduces every year until it stabilizes at 0.5% in the fifth year after launch.
The total coin supply allocation breakdown consists of:
- Public Token Sale: 8.56%
- Company Reserve: 21.92%
- Advisors and Partners: 10.83%
- Hedera Hashgraph Council: 38%
- User Acquisition and Awareness: 6.84%
- Future Token Sales: 13.85%
Applications Built on Hedera
There are numerous applications built on the Hedera network. Some of the popular ones include:
- AdsDax: A decentralized advertising platform that rewards users with digital money.
- Unibright: A blockchain automation platform for businesses that aims to provide an easy-to-use solution for integrating blockchain technology into existing systems.
- My Earth ID: An identity verification platform that allows users to verify their identity digitally.
- Zebi: A blockchain-based platform that provides data management solutions for governments and businesses
Conclusion
Hedera Hashgraph is a decentralized public network that provides a platform for building decentralized applications with security and scalability features. Its consensus mechanism is based on Asynchronous Byzantine Fault Tolerance (aBFT), making it ideal for business applications that require high throughput and low latency transactions. The HBAR token serves as gas for executing transactions on the Hedera network and has several other use cases that make it essential to the ecosystem. With numerous applications running on the Hedera network, its adoption continues to grow, making it one of the most promising blockchain networks.
