In this modern world when everything is changing so fast, and everyday new invention comes to the surface, phones are getting smarter and smarter, the financial system is being upgraded, and all the technologies are upgrading themselves, but if you look at the progress of blockchain technology, you can say that blockchain technology is the greatest invention of this decade.
Since its inception in 2018, this technology has changed the perspective of the people literally towards everything. Just think, the idea to connect people from all around the world on a peer-to-peer network by the distributed system was life-changing in itself. Various projects like Decred, Horizen, Revain, Chiliz all are successfully running on the blockchains.
But over the years, this technology has also faced various issues, we’ll discuss its drawback some another time, but to fill those spots a new type of DLT has come called hashgraph. And the company that came with this is known as Hedera hashgraph with its coin HBAR.
What is Hedera Hashgraph (HBAR)?
Hedera is a trustable fast, fair, and secure 3rd generation DLT technology where anyone can make powerful decentralized applications and can also create tokens and NFTs for their DApps. It is the brainchild of Dr. Leemon Baird and follows a distributed consensus algorithm called the gossip algorithm.
The thing which makes it amazing is, it has a governing council of 21 most famous and most successful companies of today’s world like Boeing, Swirlds, Avery Dennison, DLA Piper, LG Electronics, Deutsche Telekom, Google, IBM, Magalu, Nomura, Tata Communications, Wipro, University College London, and Zain Group, etc.
This governing council is made up of a maximum of 39 different industries, and at the time of writing they have 21 members in it, these members are not permanent, each member has a limited time of three years and can take two consecutive terms.
This governing council has the power to vote and to decide the direction of software development in Hedera hashgraph.
Hedera has its native token HBAR which is used for transaction purposes in its ecosystem.
How Hedera Hashgraph works?
Hedera is also a decentralized ledger technology like Bitcoin and Ethereum, but it does not use blockchain technology, instead, it uses DAGs (Direct acyclic graph), the major difference is, if blockchain is a list then DAG is like a tree or graph branching out from one another.
But how this algorithm works let's understand it through an example
“let’s consider a group in which Alice will choose a random member Bob, then Alice will tell bob everything she knows so far, Alice again repeat this information with another member, and bob will do the same with some other members and all the other members do the same with each other, in this way if a single member becomes aware of a new information, it will spread exponentially fast through the community until every member is aware of it”.
Every node is randomly gossiping messages with each node available in the network, and they not only gossiping about transactions but also gossips about gossip itself.
And by using this, Hedera can do over arguably 10000 transactions per second and only take 3-5 seconds for transaction finality as per their websites, which is far more than bitcoin and Ethereum.
And its cost is way cheaper than most of the blockchain networks, it costs about 0.0001$ per transaction while in bitcoin it is $22, and Ethereum it is $19, and as compared to energy consumption, Hedera consumes far less energy as compared to the PoW algorithm.
What companies use Hedera Hashgraph?
Hedera consists of numerous projects and applications that vary from health to natural ecosystem, voting to vaccinations, smart contracts to CBDC, but the one that caught my eyes was HALA, which is a social enterprise built over Hedera. It aimed to protect the citizen of Syria from misinformation.
It created a system that can give an early warning of approx 7-10 minutes before the bombing and other attacks happen.
One more big advancement is, in February 2021, Standard bank group which is the largest South African bank by asset announced a partnership with Hedera for developing cross-border trade.
Hedera is also in partnership with Korea’s Shinhan Bank and Australia payment rail Eftpos.
There are also some projects built under Hedera like SUKU, alt/ave, huttlin pedelecs, Dovu which are taking baby steps towards being carbon negative, which is a great initiative and should be applauded.
What do you think about Hedera?
2020 was very good for Hedera, it has made some important partnerships with some very important companies around the world and 2021 is so far very good.
There may be some concern regarding its governing council, but still, I think it has a long way to go, and as the technological advancement happening around the world I am sure in future Hedera will grow, and in few years, it will reach every corner of the world.
Does Hedera hashgraph have a future?
In my view, yes, it is a long-term project with regards to the token value, and well suited to support a vast array of applications.
Some people argue that it is not decentralized, and this is true to some extent.
Yes, large corporations are in charge of the organization, and yes they are ruling the governance of HBAR.
And trust me, I also don’t trust them, but the fact is, it is also true that they will do what is good for their pockets.
And if Google chooses crypto to integrate into its services then, whether it is centralized or decentralized, it should be in your portfolio.
Is Hedera hashgraph a good investment?
It has a current supply of 50 billion HBAR with 6 billion in circulation. and Hedera hashgraph price is 0.3725 at this point in time. It is up to approximately 46.3% in the last 30 days. And at the time of writing it is trending at number 48, which is quite impressive.
If we go with the trend of the current crypto market, HBAR has the potential to become one among the best altcoins out there, and one thing I always say to you, if Google, Wipro, TCS, IBM all joined in some project it should be in your portfolio.
HBAR has been listed on several crypto exchanges, like Binance, Houbi Global, Bittrex, KuCoin, Liquid, OKEx, Gate.io, and many more.