Hedera Hashgraph (HBAR): Everything You Need to Know
2024-12-04
Bittime - Hedera Hashgraph is a platform that offers an innovative alternative to blockchain technology, enabling transaction processing at high speed and low fees.
In contrast to traditional blockchain projects that rely on energy-intensive mining processes, Hedera Hashgraph eliminates the need for mining by using a new ledger structure.
The underlying technology is known as Directed Acyclic Graph (DAG), which allows the speed of transaction verification to increase as the number of transactions in the network increases.
Hedera Hashgraph Transaction Speed and Capacity
Hedera Hashgraph is designed to handle more than 100,000 transactions per second, making it a serious competitor to large payment systems like Visa.
Currently, the Hedera network processes around 6.5 million transactions every day with an average transaction time of just 5 seconds.
Hedera Transaction Processing is Much Faster than Ethereum
This is much faster compared to Ethereum which processes around 1.2 million transactions and Bitcoin which only processes around 300,000 transactions per day.
How Hedera Hashgraph Works
Management Structure
Hedera Hashgraph is managed by a board of 39 leading multinational companies.
To reach consensus, instead of using mining, nodes in the Hashgraph network “gossip” each other to compare transaction records.
This process involves selecting several "well-known witnesses" who serve as references in verifying transactions.
Hedera Node Consensus Process
When nodes gossip with each other, they select a few witnesses who become famous because their information was shared early.
The selected node then compares gossip about these witnesses across the majority of nodes.
The goal is to reach a point known as “strongly seeing”, where two nodes can predict a third node's decision with high confidence.
Hedera Main Services
Hedera Hashgraph offers four main services that work together to support various applications and transactions:
1. HBAR
A cryptocurrency used for low-cost, customizable transactions.
2. Smart Contracts
Used to automatically execute logic and build decentralized applications (dapps).
3. File Service
Provides distributed and redundant file storage with granular control.
4. Consensus Service
Enables fast, fair, and secure consensus achievement in applications that require trust.
Advantages of Hedera Hashgraph
Hedera Hashgraph offers several advantages compared to traditional blockchains:
1. High Security
Uses aBFT (asynchronous Byzantine Fault Tolerance) system to ensure security even when there are malicious actors on the network.
2. Transaction Speed
Transactions can be processed in parallel, which makes them faster compared to blockchains that process transactions serially.
3. Low Cost
Transaction fees on Hedera are very low, often under 1 cent, making it an economical choice for users.
Disadvantages of Hedera Hashgraph
Even though it has many advantages, Hedera Hashgraph also has several disadvantages:
1. Not Open Source
The technology used by Hedera is patented, which limits developers' ability to create public versions of the protocol.
2. Limited Decentralization
With only 39 board members, there are questions regarding the level of decentralization offered by Hedera, even though each member is an industry-leading organization.
Read too Understanding Hedera (HBAR): It's Advantages and Disadvantages
The Team Behind Hedera Hashgraph (HBAR)
Hedera Hashgraph was founded by Leemon Baird and Mance Harmon, who have strong backgrounds in technology and the military.
Here is more information about the two founders and the team backing Hedera:
Founder of Hedera Hashgraph
1. Lemon Baird
Leemon Baird is Co-founder and Chief Scientist at Hedera Hashgraph. He is the creator of the Hashgraph consensus algorithm that underlies Hedera technology.
Prior to founding Hedera, Baird had extensive experience in cryptography and distributed systems.
He also has a Ph.D. in Computer Science from Carnegie Mellon University.
2. Mance Harmon
Mance Harmon is the Co-founder and CEO of Hedera Hashgraph.
He has more than 25 years of experience in software development and technology management.
Prior to joining Hedera, Harmon worked in various leadership positions at technology companies and has a strong background in business strategy and product development.
Read too Who is the Founder of Hedera (HBAR)?
Hedera Hashgraph Development Team
Hedera Hashgraph is supported by a team consisting of experts in various fields, including:
Software Developer: This team is responsible for developing and maintaining the Hedera platform, including smart contracts and token services.
Researcher: Researchers at Hedera focus on innovation and development of new technologies to improve network security and efficiency.
Marketing and Communications Team: Tasked with promoting Hedera and establishing strategic partnerships with large companies in various industries.
The Future of Hedera Hashgraph
Hedera has launched the Hedera Token Service, which allows anyone to create tokens on the platform with very low transfer fees.
Upgrade plans for the main network are also in progress, including the introduction of scheduled transactions and sharding to increase transaction capacity.
Strategic Partnership
Since completing its ICO, Hedera Hashgraph has established partnerships with various leading companies, including Google, Boeing, and LG.
The partnership with Google, in which the company will run nodes on the Hedera network, is one of the largest partnerships Hedera has.
Read too Hedera Price Prediction (HBAR) 2024, 2025 - 2030, See the Analysis
Applications Built on Hedera
Hedera Hashgraph supports a variety of applications, including:
1. TrakInvest: Virtual trading platform.
2. Agrio: An agricultural lending platform that builds decentralized data-driven prediction models.
3. Carbon: Launch of the first stablecoin on Hedera.
4. AdsDax: A fast and fair advertising marketplace built on Hedera.
Conclusion
Hedera Hashgraph offers fast, secure and efficient solutions for digital transactions and decentralized applications.
With innovative technology and support from large companies, Hedera has the potential to become one of the leading platforms in the blockchain ecosystem.
FAQ
What is HBAR?
HBAR is the native utility token of the Hedera Hashgraph network. These tokens are used to pay transaction fees, participate in consensus, and support various applications built on the Hedera platform.
HBAR also allows users to conduct low-cost and fast transactions, and is used in services such as smart contracts and tokenization.
Is Hedera Safe?
Hedera Hashgraph claims to have a high level of security thanks to the use of a consensus algorithm called asynchronous Byzantine Fault Tolerance (aBFT).
This system is designed to ensure that the network remains secure even if malicious actors try to attack.
With aBFT, Hedera can achieve consensus with high reliability, so that transactions can be processed with 100% certainty.
Additionally, the decentralized network structure and management by a Governing Board consisting of leading companies also add layers of security.
Who is Behind HBAR?
HBAR is developed and maintained by Hedera Hashgraph, founded by Leemon Baird and Mance Harmon. Leemon Baird is the creator of the Hashgraph algorithm, while Mance Harmon serves as CEO.
Additionally, Hedera is managed by a Governing Board consisting of 39 leading organizations across various industries, including Google, Boeing, LG, and IBM, which provides support and credibility for the Hedera network.
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Reference
Tim Copeland & Matt Hussey, What is Hedera Hashgraph?, Accessed December 4, 2024
Hedera Official Website, What is Hedera?, Accessed December 4, 2024
Author: IN
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