Understanding Hedera (HBAR): Its Pros and Cons

Bittime - In the past week, Hedera (HBAR) experienced a significant surge in price, increasing up to 176% and reaching the highest level in the past two years. 

This increase caught the attention of investors and crypto market watchers, highlighting Hedera as an important player in the digital asset ecosystem. This article will explore the potential of HBAR and its future price predictions. Let's take a look!

What is Hedera Hashgraph (HBAR)?

Hedera Hashgraph is a distributed network platform designed to provide fast, secure, and energy-efficient solutions for various applications. HBAR, the native token of this network, is used for a variety of functions, including payment of transactions, securing the network, and supporting the ecosystem of applications that run on it.

Founded in 2018 by Leemon Baird and Mance Harmon, Hedera exists to overcome the limitations of traditional blockchains such as slow transaction processing and high energy consumption. With an average transaction fee of only $0.0001 and a processing speed of over 10,000 transactions per second (TPS), Hedera is the solution of choice for applications with large-scale needs.

Read also: Latest Info on Hedera Crypto Project (HBAR)

Hedera's Technology

Hedera uses Hashgraph Consensus Algorithm technology, a breakthrough in the way distributed networks work. The mechanism is based on the “gossip about gossip” method and virtual voting, which allows information to spread quickly throughout the network. Here are the main advantages of the technology:

High Speed

Hashgraph can process more than 10,000 TPS, far surpassing traditional blockchains like Bitcoin and Ethereum.

Asynchronous Byzantine Fault Tolerance (aBFT)

This system ensures a high level of security, keeping the network safe even if there are dishonest nodes.

Energy Efficiency

Unlike the Proof of Work (PoW) mechanism, Hashgraph is designed to be energy-efficient, making it a more environmentally-friendly option.

Additional Services

Hedera has two additional services with different functions. First, the Hedera Token Service (HTS) which allows the creation and management of tokens, including NFT tokens. Second, the Hedera Consensus Service (HCS) which provides audit log services for data trust in applications that require transparency.

Read also: HBAR price rises 40% in a day, can it rise again?

What Differentiates Hedera Hashgraph from Other Blockchains?

Hedera Hashgraph has several advantages that make it different from traditional blockchains:

Speed and Scalability

With over 10,000 TPS and a finalization time of just a few seconds, Hedera is much faster than Bitcoin which can only process 7 TPS or Ethereum with an average of 30 TPS.

Environmentally Friendly

Hashgraph technology does not require high energy consumption like PoW, making it more efficient and sustainable.

Big Company Support

Hedera Hashgraph is backed by the Hedera Governing Council, which consists of leading global companies such as Google, IBM, Boeing, and LG. This council ensures the stability and decentralization of the network.

Low and Stable Transaction Fees

Unlike other blockchains where fees fluctuate due to network congestion, Hedera's transaction fees remain low and consistent.

Token and Application Development Capabilities

Hedera enables the development of custom tokens and dApps with customizable compliance features, making it a top choice for large-scale projects, including the development of central bank digital currencies (CBDCs).

Hedera (HBAR) Technical Analysis and Price Prediction

Based on Coinmarketcap data in the past week, HBAR recorded a price spike to $0.37 before correcting to $0.32. This surge indicates high interest from investors, supported by positive sentiment towards Hashgraph technology.

According to BeInCrypto, technical indicators such as Exponential Moving Averages (EMA) show a bullish trend with the EMA 10 above the EMA 20 and EMA 50. However, the Relative Strength Index (RSI) above 70 indicates overbought conditions, so a price correction in the near future is very likely.

• Short-Term Prediction: TheHBAR rate is expected to correct to the support level at $0.28-$0.30 before rebounding towards the resistance at $0.35.
• Long-Term Prediction: According to CryptoNews, if the adoption of Hashgraph technology continues to increase, HBAR could reach $0.50 to $0.60 by mid-2025.

Also read: Hedera (HBAR) Price Prediction 2024, 2025 - 2030, Check out the Analysis

Conclusion

Hedera (HBAR) offers advanced technology, high transaction speed, energy efficiency, and support from large companies, making it one of the digital assets worth paying attention to. Although in the short term a potential price correction should be anticipated, the long-term outlook for HBAR remains positive thanks to the growing adoption of Hashgraph technology.

Investors are advised to monitor support and resistance levels and stay tuned to market sentiment. As always, conduct in-depth research and only invest funds that you are prepared to risk. Hedera Hashgraph may be the next step in the revolution of distributed systems and decentralized applications.

FAQ about Hedera (HBAR)

What is Hedera (HBAR)?

Hedera (HBAR) is a third-generation distributed network platform that uses the Hashgraph Consensus Algorithm, a unique technology that is faster, more efficient, and energy efficient than traditional blockchains.

Who is the Founder of HBAR?

The founders or founders of HBAR are Leemon Baird and Mance Harmon. Both founded HBAR in 2018 with the aim of overcoming the limitations of traditional blockchains such as slow transaction processing and high energy consumption.

What Narrative HBAR?

HBAR operates across multiple narratives. But HBAR's most prominent narratives are DePIN and RWA, as Hedera's technology is well suited for building decentralized physical infrastructure and tokenizing real-world assets.

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References:

Beincrypto, Hedera (HBAR) Price Achieves Major Milestone in Historic 700% Rally, accessed on December 4, 2024

Coinmarketcap, Hedera, accessed on December 4, 2024

Coinbureau, Hedera Hashgraph Review 2024: Third-Generation Blockchain Network, accessed on December 4, 2024

Author: RC