Hedera (HBAR), the public network based on Hashgraph technology

What Is Hedera (HBAR)?

Hedera is a public network that uses a new distributed ledger technology (DLT) known as Hashgraph. Although data is stored in hashes rather than blocks, Hashgraph functions like a blockchain.

Because transactions on Hashgraph are verified through virtual voting and the gossip protocol, Hedera is consequently a faster and more secure network.

Hedera is the only public ledger that uses Hashgraph, and its “no-fork” guarantee ensures that no other platform uses Hashgraph technology. This creates a secure and stable environment for application developers and adds long-term trust to the network.

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In this review, you will learn more about the Hedera network and its native cryptocurrency, HBAR.

Is the Hedera Network Energy-Efficient?

HBAR, the native cryptocurrency of the Hedera network with a maximum supply of 50 billion, is highly energy-efficient. For each transaction, HBAR cryptocurrency is used to compensate network nodes for storage, computing, and bandwidth.

HBAR is also used for weighted voting and network protection, as Hedera uses the concept of proof of stake instead of proof of work. This means that in order to negatively affect consensus, a malicious actor would need to hold one-third of the total supply, which is practically impossible during the first five years.

Does HBAR Offer Staking Rewards?

HBAR does not currently offer staking rewards to validators, but this feature is included in its roadmap and will likely be incorporated in the future.

There have also been rumors that HBAR could be listed on one of the crypto lending platforms, such as Celsius Network, Nexo, or Block, allowing users to earn the corresponding yield.

It is also worth noting that Binance tends to offer a small percentage yield to those who want to lock up their coins, but the rate varies.

Advantages of Hedera

Hedera uses its unique DLT technology instead of the code of a traditional blockchain. This improves speed, cost, and scalability.

Transactions on the Hedera network have a nominal fee of $0.0001 and reach finality within three to five seconds. Moreover, the network can handle up to 10,000 transactions per second, a considerable improvement over the most popular blockchains.

Hedera uses asynchronous Byzantine Fault Tolerance (ABFT) as its consensus algorithm. ABFT is considered one of the most secure algorithms, being resistant to DDoS and Sybil attacks, which significantly improves network security.

Furthermore, Hedera is a 100% fair network, as no leader node or miner has special privileges to determine the consensus timestamp assigned to a transaction. Consensus timestamps for transactions are calculated through an automated voting process, by which nodes establish consensus democratically and collectively.

Network Speed
The Hedera network can handle up to 10,000 transactions per second. Theoretically, the network can handle 500,000 transactions per second.

Liquidity
Hedera’s unique features have led to an explosive increase in its popularity. The HBAR cryptocurrency is available on most crypto exchanges, with a daily volume of tens of millions of dollars and a circulating supply of 20.23 billion HBAR.

Disadvantages of Hedera

Although there are no specific disadvantages to the Hedera network, some experts consider the governance of 39 enterprises on the network to be a major drawback, undermining the decentralized concept by granting control to certain individuals and creating a centralized node structure.

But that is not the whole story. Each governing council member has a limited term, meaning they can serve on the council for only two consecutive three-year terms. This arrangement prevents any particular organization from holding too much power and, in the early stages, helps maintain network stability.

In addition, this centralized node structure is not permanent, and Hedera is moving toward fully decentralizing its network. Soon, the Hedera network will have a wide diversity of nodes around the world, with ordinary people who meet the basic CPU, storage, and bandwidth requirements being able to host nodes.

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