Hedera Hashgraph

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Discover Hedera Hashgraph's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Hedera Hashgraph?

Hedera Hashgraph (HBAR) is a public crypto network that utilizes a unique hashgraph consensus algorithm, enabling fast, secure, and energy-efficient transactions. It supports decentralized applications and offers a scalable platform with high throughput, low fees, and rapid transaction finality. HBAR is the native cryptocurrency used for transactions, node operations, and governance. The network is managed by a Global Governing Council of reputable organizations, ensuring trust and stability.

How is Hedera Hashgraph used?

Hedera Hashgraph (HBAR) is used in several ways within the Hedera network:

  1. Transaction Fees: HBAR is used to pay fees for transactions on the network. This includes fees for creating and executing smart contracts, minting tokens, and other operations.

  2. Staking and Network Security: HBAR is staked to network nodes to provide a weighted voting system for validating transactions. This is part of the proof-of-stake consensus mechanism, which ensures the security and integrity of the network.

  3. Developer Tools: HBAR is used by developers to build and deploy decentralized applications (dApps) on the Hedera network. This includes using HBAR for gas fees, similar to how Ethereum uses ETH for gas fees.

  1. Tokenization: HBAR can be used to create and manage fungible and non-fungible tokens (NFTs) for various applications, such as governance, digital collectibles, or in-app payments.

Overall, HBAR plays a central role in facilitating transactions, ensuring network security, and enabling the development of decentralized applications on the Hedera Hashgraph network.

How do I store Hedera Hashgraph?

To store Hedera Hashgraph (HBAR) tokens, you can use various wallets and methods. Here are some options:

Hardware Wallets
  • Ledger Nano: Install the Hedera Hashgraph app on your Ledger device to store HBAR tokens securely. This method ensures your private keys are kept offline and safe.
Software Wallets
  • Hashpack: A web-based wallet that allows you to generate a public key and manage your HBAR tokens. It can be accessed via a Chrome extension, similar to MetaMask.
  • MyHbarWallet: A software wallet that enables the creation of accounts, generates private keys, and manages HBAR cryptocurrency. It is known for its intuitive design and free access.
  • Hedera Wallet: The official Hedera Hashgraph wallet available for iOS and Android devices. It allows for fast and secure transactions with low fees.
  • Exodus: A multi-asset wallet that supports HBAR tokens, offering a user-friendly interface and robust security features.
Additional Tips
  • Avoid Exchanges: It is recommended not to store your HBAR tokens on exchanges due to the risk of hacks and account revocation. Instead, use cold wallets like Ledger for secure storage.
  • Paper Storage: For added security, store your wallet phrase words on paper in a safe place, and avoid storing them digitally.

By choosing one of these methods, you can safely store and manage your HBAR tokens.

How to buy Hedera Hashgraph?

To buy Hedera Hashgraph (HBAR) tokens, you can follow these steps:

Using KuCoin
  1. Create an account: Go to KuCoin and sign up for a free account.
  2. Secure your account: Verify your account and add a payment method.
  3. Buy HBAR: Use your payment method to purchase HBAR. You can buy with a credit/debit card, bank transfer, or third-party channels.
Using Uphold
  1. Create an account: Sign up for a free account on Uphold.
  2. Verify your identity: Complete the verification process.
  3. Choose a payment method: Connect your debit/credit card, bank account, or external crypto wallet.
  4. Buy HBAR: Use your chosen payment method to purchase HBAR.
Using Coinbase
  1. Create an account: Download the Coinbase app and sign up.
  2. Add a payment method: Connect a bank account, debit card, or initiate a wire transfer.
  3. Search for Hedera: Find Hedera in the search bar.
  4. Enter the amount: Input the amount you want to spend in your local currency.
  5. Finalize the purchase: Preview and confirm your purchase.
Using MoonPay
  1. Enter the amount: Decide how much HBAR you want to buy.
  2. Enter your wallet address: Provide your HBAR wallet address.
  3. Verify your email: Complete the verification process.
  4. Buy HBAR: Use your preferred payment method, such as a credit/debit card, bank transfer, or Apple/Google Pay.

Remember to research and understand the fees and risks associated with each platform before making a purchase.

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History of Hedera Hashgraph

Hedera Hashgraph (HBAR) is a decentralized distributed network that uses hashgraph technology instead of blockchain. The network was founded by Leemon Baird, a computer scientist, and Mance Harmon, a technology executive, who formed a company called Hedera. The Hedera Hashgraph system is the only public distributed ledger based on the Hashgraph algorithm, which provides increased speed, fairness, low cost, and security constraints compared to blockchain technology.

Key Milestones
  • July 2017: The initial release of Hedera Hashgraph took place.
  • 2020:
    • July 7: Mirror Node software entered beta, allowing for cost-effective querying of historical data.
    • July 23: The previewnet went live, providing early access to Hedera codebase features and functionality.
    • August 6: All Hedera network services, including the Hashgraph platform, entered open source under the Apache 2.0 license.
    • September 17: State Proof software entered alpha, enabling users to obtain cryptographic proofs of transactions.
    • October 9: The code for the hashgraph platform entered open review.
    • October 22: The Hedera Token Service (HTS) was launched on the previewnet, allowing for the issuance and configuration of tokens on Hedera.
  • 2021:
    • February 9: HTS was launched on the mainnet with over 60 initial ecosystem partners.
    • June 25: The Hedera Public Mirror Node became available, providing a publicly accessible, free-to-use mainnet Mirror Node.
    • September 21: A charity NFT auction was conducted on the Hedera network to demonstrate its capabilities.
  • 2022:
    • August 5: The hashgraph consensus algorithm entered open source under the Apache 2.0 license, further accelerating its development.
    • January 2: Hedera Smart Contract Service (HSCS) 2.0 was launched on the testnet, offering EVM compatibility and carbon-negative operations.
    • February 2: HSCS 2.0 was launched on the mainnet.
Governance and Development

Hedera is owned and managed by a governing council of global companies and entities, including Google, Boeing, IBM, and several others. The council has played a significant role in the development and decentralization of the network, including the transition of the hashgraph consensus algorithm to open source.

Technical Details

Hedera Hashgraph uses a "gossip about gossip" protocol to create directed acyclic graphs that time-sequence transactions. Each "gossip" message contains one or more transactions plus a timestamp, a digital signature, and cryptographic hashes of two earlier events. This makes Hashgraph form an asynchronous Byzantine Fault-Tolerant (aBFT) consensus algorithm. The network also employs a variant of Proof of Stake for consensus, which increases efficiency by reducing message-passing.

Storage and History

Hedera Mainnet nodes prioritize consensus and state persistence. The hashgraph, which contains all transactions that change the state, is constantly pruned after transactions are assigned a place in consensus order. Mirror nodes, on the other hand, can store transaction history, allowing for the retrieval of historical transactions and providing a way to store and query historical data from the public ledger while minimizing the use of Hedera network resources.

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How Hedera Hashgraph works

Hedera Hashgraph (HBAR) is a decentralized, public ledger technology that uses a unique consensus algorithm called hashgraph. Here's how it works:

Hashgraph Consensus

Hashgraph is a patented algorithm that allows nodes on the network to communicate and agree on the order and validity of transactions. Unlike traditional blockchain consensus mechanisms, hashgraph does not rely on a single miner or validator to choose the next block. Instead, the entire network of nodes comes to a collective agreement on which transactions to add to the ledger.

The consensus process involves two key steps:

  1. Gossip-about-Gossip Protocol: Nodes on the network constantly share information with each other, creating a web of interconnected nodes. This gossip protocol ensures that each node has a comprehensive view of the network and all transactions.
  2. Virtual Voting: Nodes use the information gathered through gossip to vote on the validity and order of transactions. This virtual voting process ensures that the network reaches a consensus on the state of the ledger.
Transaction Processing

Here's how a transaction is processed on the Hedera network:

  1. Client Creates Transaction: A client creates a transaction, which is cryptographically signed to ensure authenticity.
  2. Node Processing: The transaction is submitted to any node on the network, which verifies the transaction and checks if the paying account has sufficient balance to cover the fees.
  3. Consensus: If the transaction is valid, the node adds it to an event and gossips that event to other nodes. The network quickly reaches consensus on the transaction through the gossip-about-gossip protocol and virtual voting.
  4. Immutable Ledger: Once consensus is reached, the transaction is added to the public ledger, which is stored on each node. The ledger is immutable, meaning that once a transaction is confirmed, it cannot be altered or deleted.
HBAR Token

HBAR is the native cryptocurrency of the Hedera network. It serves two primary purposes:

  1. Transaction Fees: HBAR is used to pay for transaction fees on the network. The cost per transaction is extremely low, around $0.0001 USD, making micropayments practical.
  2. Network Security: HBAR is used for staking, which helps secure the network. Nodes on the network stake HBAR to participate in the consensus process and earn rewards. This proof-of-stake mechanism ensures that the network is secure and resistant to malicious attacks.
Network Architecture

The Hedera network consists of two types of nodes:

  1. Consensus Nodes: These nodes are responsible for reaching consensus on transactions and maintaining the public ledger. They are currently permissioned but will be permissionless in the future.
  2. Mirror Nodes: These nodes offer developers a flexible and cost-effective way to store and query historical data for analytics and explorers.
Key Features

Hedera Hashgraph offers several key features that make it attractive for decentralized applications:

  1. High Throughput: The network can process over 10,000 transactions per second, making it much faster than traditional blockchain networks.
  2. Low Latency: Transactions achieve finality within three to five seconds, ensuring fast and secure settlements.
  3. Security: The hashgraph consensus algorithm provides high security and resistance to malicious attacks.
  4. Scalability: The network is designed to be highly scalable, making it suitable for large-scale decentralized applications.

Overall, Hedera Hashgraph offers a fast, secure, and scalable platform for building decentralized applications. Its unique consensus algorithm and native HBAR token make it an attractive option for developers and users alike.

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Hedera Hashgraph's strengths

Hedera Hashgraph (HBAR) has several strengths that set it apart from traditional blockchain technologies. One of its most significant advantages is its ability to process transactions at a much higher speed and lower cost compared to blockchain networks. The Hedera network can handle around 100,000 transactions per second, with finalization times of just 3-5 seconds, and a transaction cost of approximately $0.0001.

Another key strength of Hedera Hashgraph is its energy efficiency. Unlike blockchain networks that rely on energy-intensive mining processes, Hedera uses a unique consensus protocol that eliminates the need for mining. This makes it a more environmentally friendly option.

Hedera's hashgraph technology also provides enhanced security through its asynchronous Byzantine Fault Tolerance algorithm, which prevents malicious actors from compromising the network. Additionally, the network's governance structure, which includes a council of major corporations like IBM, LG, and Boeing, adds to its credibility and stability.

The Hedera network also supports the development of decentralized applications (dApps) and smart contracts using object-oriented programming, making it a versatile platform for a wide range of use cases. Overall, Hedera Hashgraph offers a fast, secure, and efficient alternative to traditional blockchain technologies.

Hedera Hashgraph's risks

Hedera Hashgraph (HBAR) is considered a high-risk investment due to various factors. Here are some of the key risks associated with HBAR:

  1. Volatility: HBAR is known for its high volatility, with prices fluctuating rapidly. This can result in significant financial losses if the value of HBAR decreases.

  2. Slashing: When staking HBAR, there is a risk of slashing, which occurs when a validator behaves maliciously or fails to meet certain requirements, leading to the loss of staked tokens.

  3. Technical Issues: The Hedera Hashgraph network is vulnerable to technical issues or vulnerabilities, which can result in the loss of staked funds if not addressed promptly.

  1. Regulatory Risks: Changes in regulatory policies can impact the value and usability of HBAR. Governments are still figuring out how to regulate cryptocurrencies, and new regulations could negatively affect HBAR.

  2. Network Attacks: HBAR is susceptible to network attacks, which can compromise the security of the network and result in the loss of staked funds.

  3. Lock-up Period: When staking HBAR, tokens are typically locked up for a certain period, during which they cannot be accessed or sold. This can be a significant risk if market conditions change unfavorably.

  1. Smart Contract Risks: Weak coding in smart contracts can create openings for malicious actors, leading to potential losses.

  2. Liquidity Risks: Liquidity pools can be drained by malicious actors, and DeFi protocols are vulnerable to such exploits.

  3. General Market Risks: HBAR is part of the broader cryptocurrency market, which is known for its speculative nature and high volatility. This means that market sentiment and global economic conditions can impact the value of HBAR.

These risks highlight the importance of careful evaluation and diversification when considering investments in HBAR.

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Did Hedera Hashgraph raise funds?

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Hedera Hashgraph’s team

  • Mance Harmon: Co-founder of Hedera Hashgraph, winner of the 'Emerging Company CEO' award at the 21st Annual Tech Titans Awards.
  • Dr. Leemon Baird: Co-founder of Hedera Hashgraph, winner of the 'Technology Inventor' award at the 21st Annual Tech Titans Awards.
  • Alex: Chief Information Officer of Hedera, responsible for the technical operations of the network.
  • Nilmini Rubin: Chief Policy Officer at Hedera, with extensive experience in international technology, energy, and democracy policy.
  • Charles Adkins: President of Hedera, bringing experience in web3 technology, finance, government, and consumer brands.
  • Scott Thiel: Founder and entrepreneur-in-residence of TOKO, an enterprise-grade tokenization engine and digital asset management platform, and advisor to the Hedera Hashgraph Governing Council.

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