Hedera Hashgraph is a distributed ledger technology (DLT) platform that aims to provide a secure, fast, and fair way of conducting transactions and deploying decentralized applications (dApps). It was created by a company called Swirlds, which was founded by Dr. Leemon Baird and Mance Harmon.
The platform is based on a data structure known as a directed acyclic graph (DAG), which differs from the traditional blockchain structure used by cryptocurrencies like Bitcoin and Ethereum.
Hashgraph claims to offer several advantages over blockchain technology, including high throughput, low latency, fairness, and security. It achieves these through a consensus algorithm called the Hashgraph consensus algorithm, which uses a combination of gossip about gossip and virtual voting to achieve consensus on the order and validity of transactions. This algorithm purportedly allows for high transaction throughput while maintaining security and fairness.
Hedera Hashgraph also operates a public network called the Hedera Mainnet, which allows developers to build and deploy decentralized applications (dApps) and smart contracts. The platform uses a native cryptocurrency called HBAR, which is used to pay for transaction fees and other services on the network.
Hedera Hashgraph was founded by Dr. Leemon Baird and Mance Harmon. They co-founded a company called Swirlds, which developed the technology behind Hashgraph. The initial work on Hashgraph began around 2015, and the company was officially founded in 2016.
Dr. Leemon Baird is a computer scientist and inventor with a background in academia. He holds a Ph.D. in computer science from Carnegie Mellon University and has extensive experience in the field of distributed systems.
Mance Harmon, on the other hand, has a background in both technology and business. He holds an MBA from the University of Texas at Austin and has worked in various leadership roles in the technology industry.
Baird and Harmon sought to create a distributed ledger technology that could offer higher throughput, lower latency, and improved security while maintaining decentralization and fairness. They aimed to build a platform that could support a wide range of applications, from cryptocurrencies to supply chain management and beyond.
Hedera Hashgraph received its initial funding through an initial coin offering (ICO) held in August 2018. During this ICO, investors had the opportunity to acquire the platform's native utility token, HBAR, at its earliest offering price. Following the successful ICO, Hedera Hashgraph launched open access to its mainnet in September 2019, just over a year later. This milestone marked the beginning of broader accessibility to the platform's features and services, allowing developers and users to leverage the capabilities of the Hashgraph technology for various applications and transactions.
Hedera Hashgraph claims to offer extremely high transaction throughput and low latency compared to traditional blockchain systems. Its consensus algorithm allows for thousands of transactions per second, enabling real-time transactions and applications.
The Hashgraph consensus algorithm ensures fairness in transaction ordering. Unlike some blockchain systems where miners or validators may have advantages, Hashgraph aims to provide a fair and equitable environment for all participants. Hashgraph's consensus algorithm is generally considered to be more energy-efficient compared to proof-of-work (PoW) systems used by some blockchain platforms like Bitcoin. This is because it doesn't require vast amounts of computational power to validate transactions.
Hashgraph employs a robust security model based on cryptographic techniques and the gossip-about-gossip protocol. This is designed to protect against various attacks, including Sybil attacks, double-spending, and distributed denial-of-service (DDoS) attacks.
Hedera Hashgraph claims to achieve Asynchronous Byzantine Fault Tolerance, which means the network can reach consensus even in the presence of malicious nodes or adverse network conditions, without requiring a synchronous network.
Hedera Hashgraph has a unique governance model that involves a council of diverse organizations from various industries and regions. This council oversees the network's development, operation, and governance, aiming to provide stability, decentralization, and fairness.
The HBAR token plays a multifaceted role within the Hedera public network. Primarily, it serves as the fuel that powers various Hedera services, including smart contracts, file storage, and everyday transactions. Beyond its utility in transactions, HBAR is also utilized to enhance the network's security. Users can stake their HBAR tokens, contributing to the network's integrity and consensus mechanisms.
Hedera (HBAR) serves as the native cryptocurrency of Hedera Hashgraph, distinguishing itself as an innovative alternative to conventional blockchain technologies. Positioned for speed, efficiency, and heightened security, the platform leverages the HBAR token to facilitate seamless transactions and foster a robust ecosystem of decentralized applications.
Hedera Hashgraph offers several key services:
- Consensus Service (HCS): Through HCS, clients communicate with the network to negotiate consensus timestamping and order. Data is stored offline, allowing users to define privacy settings and access controls.
- Hedera Token Service (HTS): HTS enables customers to create and manage tokens, supporting built-in tokenization processes.
Hedera Hashgraph aims to enhance transaction speed and cater to high-volume operations such as micropayments, data integrity maintenance, and tokenization. Additionally, the network features a virtual machine akin to the Ethereum Virtual Machine (EVM) for writing smart contracts in the Solidity programming language. Hedera also provides a suite of built-in KYC (Know Your Customer) and AML (Anti-Money Laundering) checks.
The HBAR token has a total supply of 50,000,000,000 HBAR, and as of February 13, 2024, the circulating supply is 33,667,358,352 HBAR.
As per information provided by Hedera's resources, the two founders of the project are each granted two billion HBARs, representing 4% of the total supply per individual. These tokens undergo a vesting process spread over a six-year duration.
Additionally, senior executives at Hedera, who joined the project before 2018, receive coin grants ranging from 250 million to 300 million coins. These tokens are subject to vesting, with the vesting period concluding in December 2021.
According to Hedera's Economics Whitepaper, released in June 2020, it is estimated that approximately 17.03 billion HBAR tokens will be in circulation by 2025, constituting roughly 34% of the total supply.
The Average Fees on the Hedera Hashgraph
The fees on the Hedera Hashgraph network, denominated in HBAR (the native cryptocurrency of the network), vary depending on the type of transaction and network activity. However, the average fees on Hedera Hashgraph tend to be very low compared to many other blockchain networks.
For instance, typical transaction fees on Hedera Hashgraph for a simple cryptocurrency transfer might be in the range of 0.001 HBAR to 0.01 HBAR per transaction. More complex transactions involving smart contracts or token transfers may incur slightly higher fees but are still generally very low.
The HBAR Token Wallets
The HBAR tokens can be stored in one of the following crypto wallets: Ledger, Exodus, Atomic Wallet, Blade, Guarda Wallet, Simple Hold, Edge, Hedera Wallet, BRD Wallet, etc.
