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Hedera

Non-custodian wallet that helps you to find the best opportunities in the crypto world

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Non-custodian wallet that helps you to find the best opportunities in the crypto world

About Hedera

Hedera is a decentralized public network that allows individuals and organizations to develop powerful decentralized applications (dApps). It was created by some of the world’s largest corporations to tackle the performance and security issues facing older blockchain platforms like Ethereum.

Hedera aims to offer fair access, stability, and security through its innovative hashgraph consensus algorithm and governing council structure. The network enables micropayments, smart contracts, tokenization, and more, with vastly improved speeds and scalability compared to traditional blockchains.

History of Hedera (HBAR)

Hedera (HBAR) has an interesting history that originated from the vision of two esteemed professionals. Dr. Leemon Baird and Mance Harmon, mathematicians and computer scientists, brought an innovative idea to life in 2016, founding the company called Swirlds, with an innovative technology known as hashgraph. The hashgraph technology, a Direct Acyclic Graph, was a distinctive feature that set Hedera apart from other blockchain platforms.

Two years later, an advanced version of hashgraph known as Hedera Hashgraph was introduced. With its launch, HBAR, the native cryptocurrency of the Hedera Hashgraph was also unveiled. Featuring a robust set of criteria, including decentralization, speed, security, fairness, and stability, Hedera aimed to counterbalance the limitations of the traditional blockchain technology. It was welcomed warmly by the tech industry globally due to its potentially game-changing technology and values of transparency and inclusiveness.

Over the past years, Hedera has developed norms for its platform with the support of a governing council composed of the world’s leading organizations. Its purpose-focused approach has made it one of the most promising projects in the crypto world. While it navigates the ever-evolving digital landscape, Hedera continues to promote an open and fair internet that benefits all.

Hedera Governance Model

Hedera uses a governance model consisting of a governing council and a hashgraph consensus algorithm. The council is designed to ensure stability and guarantee the decentralization of Hedera over time.

The council votes on software updates, policies, and changes to network nodes and economics. It consists of up to 39 highly diversified organizations that span multiple industries and geographies. Members serve a maximum of two consecutive 3-year terms.

This governance system aims to balance the need for flexibility to adapt to emerging use cases with the stability required for large-scale adoption.

Hedera Hashgraph Consensus Algorithm

The Hedera network utilizes the hashgraph consensus algorithm rather than a traditional blockchain. This technology offers significant advantages in speed, fairness, cost efficiency, and security.

Transactions on Hedera are confirmed in seconds rather than minutes or hours on most blockchains. Hashgraph also eliminates the need for wasteful proof-of-work mining and allows transactions to have a predictable cost.

The gossip protocol behind Hashgraph ensures mathematical proof of fairness in the order and timestamp of transactions without centralized actors. This enhanced security and trust have helped fuel adoption by major enterprises.

Features and Benefits of the Platform

Hedera provides a fast, secure, and scalable decentralized platform on which developers can build a wide range of decentralized applications.

Key features include:

Lightning-fast transaction speeds of 3-5 seconds
Intuitive smart contract engine with low compute fees
Native token services such as fungible and non-fungible tokens
Highly scalable architecture that grows with demand
Official Hedera wallet SDKs for many development environments

Benefits to developers include increased revenue from micropayments, better consumer experience, reduced hosting fees, access to a growing user base, and inherent security benefits of decentralization.

Use Cases and Adoption

As a versatile, enterprise-grade public ledger, Hedera is being adopted across a variety of industries and use cases:

Financial services – asset tokenization, payments, lending
Supply chain – track global shipments and fight counterfeiting
Gaming – NFTs, asset ownership, player economies
Government – transparent recordkeeping, licensing
Healthcare – medical records, data privacy
Media – fight piracy, musical royalties management

Major companies building on Hedera include Boeing, LG, IBM, T-Mobile, Standard Bank Group, and more. Hedera has also partnered with platforms like Chainlink to expand capabilities.

In 2021, transactions on Hedera grew almost 400% year-over-year showing accelerating adoption. As businesses and developers continue discovering the benefits of Hedera, adoption is poised to surge.

Tokenomics of HBAR

HBAR is the native cryptocurrency fueling Hedera services like smart contracts and token creation. Here are some key aspects of HBAR’s tokenomics:

Fixed initial supply – 50 billion HBAR minted originally
Up to 5 billion HBAR released each month over 15 years
Currently circulates over 18 billion HBAR
Used to pay node operators that validate transactions
Required to create accounts and submit transactions
Used for NFT minting, token transfers, file storage, and more
Accounts receive HBAR grants to try services for free

This controlled release of large total token supply aims to provide fair distribution and prevent speculative price swings in the early years.

HBAR as an investment option

Investment potential in cryptocurrencies has intrigued the world for quite some time now, and the HBAR cryptocurrency is no exception. As digital assets continue to show promises of considerable returns, analyzing HBAR as an investment option is definitely worth discussing. Co-developed by renowned computer scientists, HBAR is built on an innovative and highly secure framework called the hashgraph, allowing it high-speed transactions and low transaction costs. These transformative features can contribute directly to profitability if used as a valuable tool in sophisticated investment strategies.

Considering the clear desire for more transactional efficiency in the financial world, HBAR has a unique positioning that can potentially yield higher returns than conventional assets. However, like any other investment, the potential of high returns is often accompanied by high risk. It is essential to read the market reactions, understand the product’s potential growth, and take into account its volatility. Hedera, the platform that launched HBAR, has demonstrated robust operational capacity and growth, offering an optimistic outlook for HBAR. Yet, investing in it should be guided by a comprehensive understanding of the complexities of the crypto market and its inherent uncertainties. Adopting a cautionary but open-minded strategy might be an advisable course of action.

Where to Buy Hedera

Choosing the perfect platform to invest in Hedera, or any cryptocurrency for that matter, is a crucial step that should not be taken lightly. In the world of digital assets, security and transparency are key to ensure a successful trading experience. Therefore, it’s recommended to select a platform that aligns with these principles. Several online exchanges and brokerages, for instance, such as Binance, OKEx, and Huobi, currently offer Hedera. Additionally, for those favoring a more user-friendly approach, eToro and Crypto.com could be considered. It is essential to investigate the platform’s security measures, fees, and overall reputation.

It’s also advantageous to consider platforms that provide a comprehensive learning curve for beginners, offering educational resources and tools such as charts and analysis. Lastly, for comfort and convenience, consider platforms that are responsive and usable across various devices including smartphones, tablets, and computers. And while investing in such a new and rapidly expanding field as cryptocurrency may seem daunting, cautiously choosing the right platform could significantly ease this process.

Roadmap and Future Developments

Hedera aims to expand network capabilities, stability, and adoption with its 2023-2025 roadmap. Goals include:

Increase council size to 39 members
Transition network nodes to permissionless nodes
Add support for layer 2 solutions to improve scalability
Enable sharding to optimize network performance
Support bartnet cross-chain interoperability
Implement proxy staking for HBAR
Expand tools for developer experience
Onboard more enterprises and developers to the network

Achieving these ambitious milestones over the next 2-3 years will cement Hedera as the leading enterprise-grade public ledger.

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FAQ

Hedera is a public network built on the Hashgraph consensus algorithm. Unlike traditional blockchains, Hashgraph uses a unique approach to achieve consensus without requiring energy-intensive proof-of-work.

Hedera was co-founded by Dr. Leemon Baird and Mance Harmon. The duo has deep roots in computer science and the technology industry, which have been instrumental in the development of this innovative platform.

Hedera operates on the Hashgraph consensus mechanism. Instead of blocks in a chain, it utilizes a graph structure where transactions are woven together. Transactions gain consensus quickly through a process called “gossip about gossip”, making the platform fast and efficient. Hashgraph Whitepaper offers a deep dive into the technical workings.

Hedera’s platform is utilized for a variety of applications, from micropayments and secure data storage to complex decentralized applications. Its promise lies in its speed, security, and scalability, catering to a diverse range of enterprise and consumer use cases.

HBAR, the native cryptocurrency of Hedera, can be purchased on several major cryptocurrency exchanges. For example, exchanges like Binance, OKX, Huobi, and Bittrex have listed HBAR for trading. It’s crucial to do due diligence and select an exchange with a solid reputation for security and user experience. Checking Hedera’s official channels can also provide updates on newly supported platforms and exchanges. Remember, always prioritize safety and use two-factor authentication when setting up exchange accounts.

For enhanced security, it’s wise to store HBAR in a hardware or non-custodial wallet. For instance, the IronWallet is one such non-custodial cryptocurrency wallet that supports HBAR. Remember, with non-custodial wallets, users retain full control over their private keys, thus offering a higher degree of safety.

Hedera stands out because of its Hashgraph consensus mechanism, which is touted as an alternative to traditional blockchain. This allows for high transaction throughput, low fees, and finality in seconds without the need for energy-intensive mining. Additionally, Hedera is governed by a council of global organizations, ensuring diverse representation in decision-making.

No, you cannot mine HBAR like traditional proof-of-work cryptocurrencies. Hedera’s consensus mechanism doesn’t rely on mining, which means it’s more energy-efficient. HBAR tokens are instead earned through various other means, such as node operation or participation in the network’s ecosystem.