What Is Harmony (ONE) How It Works & Where To Buy It?

Harmony is an innovative blockchain that seeks to solve the blockchain trilemma, and it positions itself as a scalable, efficient, and secure blockchain.

Harmony incorporates a unique sharding mechanism and effective proof of stake consensus algorithm that ensures a more decentralized network.

ONE is the native cryptocurrency used to power the Harmony network – ONE is currently the 82nd largest cryptocurrency by market capitalization.

How Harmony (ONE) Works

Harmony blockchain can validate transactions quickly and efficiently on the blockchain network through random state sharding.

The innovative sharding mechanism implements the division of the database, which in turn reduces latency. Another advantage of the sharding mechanism is that there is reduced network congestion and faster transactional finality.

At the moment, the Harmony blockchain is capable of processing up to 2,000 transactions per second. The Harmony project has also managed to achieve extremely affordable transaction fees, with most transactions costing less than $0.000001.

Essentially, to best understand the functionality of the blockchain, it’s important to understand how the network is secured and how block rewards are distributed.

Harmony uses a novel proof of stake to reach network consensus – it’s called Effective Proof-of-Stake (EPoS). It functions similarly to other blockchain protocols in that there are validators are delegators that participate and receive ONE token for their contribution to the network.

Blocks are produced and are then required to be confirmed within a specific shard – each block is required to contain signatures from keys that account for more than 2/3 of the overall voting power in the shard committee.

28 ONE are distributed per confirmed block; these block rewards are distributed to validators which will then distribute to the delegators – all validators whose signatures were contained on the block receive rewards proportionally to their voting power of the signed keys.

The amount of black that every validator receives is proportionate to their commission fee, and delegators receive rewards proportionate to their stake after the validator’s commission fee is charged.

For example, a certain validator receives 4 ONE tokens for a block that it signs at a commission rate of 25%. The validator’s total stake is 10,000 ONE, and there are two delegations, each with a stake of 10,000 ONE. The following block reward distribution will take place:

1. The validator’s commission fee of 25% is deducted from the block rewards (4 ONE * 25% = 1 ONE) and credited to the validator.
2. .The remaining 3 ONE tokens are then distributed to all the stakers (this is inclusive of both the validator and its delegators) proportionally based according to their specific stake. Since the stakers (the validator and the two delegators) staked/delegated 10,000 ONE (which is an equal amount of ONE tokens each), they will then each receive 1 ONE from the reward distribution.

The Harmony network also facilitates cross-chain through the use of smart contracts, making the network incredibly versatile and efficient compared to many other blockchain networks.

A more in-depth explanation of the project can be found by reading the whitepaper.

What Is Harmony (ONE) Used For?

ONE is Harmony’s native token that powers all transactions within the Harmony ecosystem and throughout the multi-chain world. It’s easiest to think of it as the token that is required to facilitate any transactions necessary for interactions with decentralized applications and any actions on the Harmony network.

ONE is typically used as a medium of transferring value, and it’s used to make payments and purchases. It is also the governance token of the Harmony blockchain, which means that holders of ONE tokens have voting rights – they’re able to participate in important governance proposals that will affect the project.

Additionally, users can become delegators or validators and stake Harmony crypto (ONE) in return for block rewards.

Harmony aims to position itself at the center of future decentralized trustless economies, enabling the cross-chain interoperability bridge that traditional blockchains are still unable to facilitate.

Where To Buy Harmony (ONE) Tokens

ONE is currently one of the most popular cryptocurrencies on the market. The Harmony team has managed to take the crypto world by storm with its project, and the Harmony community is confident in the project’s future.

ONE tokens are commonly traded on most centralized crypto exchanges. Before you’re able to purchase ONE, you’ll need to deposit fiat money onto an exchange; sequentially, ONE tokens will then be credited to your ONE digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store ONE tokens.

1. Gate.io
2. HTX
3. KuCoin
4. Binance
5. Crypto.com

ONE token holders can transfer their ONE tokens to a compatible digital wallet such as Metamask. This makes it easier to use ONE tokens to participate in the Harmony ecosystem’s various DApps.

Users can earn yields from participating in various decentralized finance applications, as well as staking Harmony crypto (ONE).

The harmony ecosystem currently has a total value-locked of more than $260 million.

About Harmony (ONE)

How long has Harmony (ONE) existed?

Harmony was initially founded by Stephen Tse in 2018. The Harmony mainnet went live in 2019, and since then, the native ONE token has performed significantly well.

ONE launched at $0.02 and went on to reach an all-time high of $0.35 on the 14th of January 2022.

However, the current bearish sentiment in the market has led to a major price decline in the ONE token, as is the case with the majority of cryptocurrencies. ONE token is currently trading at $0.04859 as of May 2022.

ONE achieved its highest market cap in January 2022 – where it had a market cap exceeding $4 billion – it was one of the top 50 largest cryptocurrencies in the world by market capitalization at the time.

What’s controversial about Harmony (ONE)?

Every cryptocurrency project has a certain amount of controversy surrounding certain aspects of the project.

Let’s take a look at the top controversy surrounding Harmony (ONE):

• Slow Growth – The project is relatively new but still hasn’t managed to garner the attention of a significant amount of users. Competing projects have much higher user adoption, trading volumes, and a larger total value-locked in their ecosystems.

How many ONE Token token are there?

At the time of writing, ONE has a circulating supply of 12.06B ONE

The total supply of ONE is 13,456,796,412

Can ONE be mined?

ONE is an unmineable cryptocurrency. Harmony blockchain uses a proof-of-stake consensus algorithm which means that the cryptocurrency is not mineable. Other cryptocurrencies that use proof-of-work consensus algorithms like Bitcoin and Litecoin can be mined because they require computing power to secure the network.

There are, however, various ways for users to earn ONE tokens. The easiest way to earn ONE tokens is by becoming a validator or delegator, you’ll be required to stake your ONE tokens to do this, and you’ll receive block rewards proportionate to your stake.

Some centralized exchanges offer staking rewards for ONE holders that lock up their tokens for a certain duration.

What is the market cap of Harmony (ONE)?

The market cap of Harmony (ONE) is:

Harmony (ONE) market cap = total amount of coins in circulation x current market price of ONE.

Harmony (ONE) Market Cap =12.06B ONE x $0,04859 = $586 million (82nd largest market cap)

It is currently one of the top 100 cryptocurrencies by market capitalization, and Harmony continues to be a project that is growing its user adoption rapidly.

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Harmony (ONE)

Harmony has experienced significant growth since its launch, but it isn’t the only project on the market offering users similar solutions to scalability, decentralization, and security.

Some of Harmony’s top competitors are:

• Polkadot
• Solana
• Ethereum
• Cardano

What are the future plans for Harmony Blockchain and ONE token?

The Harmony team has announced its intention to expand its cross-chain capabilities. One of its major investors includes Silicon valley’s consensus capital, one of the investors driving the growth and expansion of the project.

The project will continue to grow its user adoption, increase the number of wallet holders, and aim to optimize the network as much as possible.

The future success of Harmony depends on how well the project can accommodate users and how versatile and scalable the blockchain can grow to be.

Pros And Cons Of Harmony Blockchain And ONE Token

Pros:

• More Decentralized Than Other Blockchains – Harmony incorporates an Effective Proof-of-Stake consensus mechanism that utilizes sharding to optimize the network. Smaller validators are incentivized more than larger validators because they reduce the risk of congestion and network issues.
• Transaction Speed – The harmony platform is capable of processing 2,000 transactions per second, and transaction finality takes 2 seconds on average.
• More Energy-efficient Than Other Blockchains – Harmony incorporates its novel proof-of-stake mechanism, which is significantly more energy-efficient than traditional blockchains that run on proof-of-work.
• Cross-chain – Harmony has cemented itself in the crypto space because of its exciting cross-chain interoperability. The interoperability makes the Harmony blockchain especially convenient for the easy and convenient trading of NFTs across multiple chains – this could potentially bolster the adoption of the Harmony blockchain.

Cons:

• Smaller Market Cap – ONE is currently the 82nd largest cryptocurrency in the world by market cap. The market cap of the project is still relatively small compared to its competitors, and the project will need to prioritize growth and innovation to compete with some of the larger projects that are currently on the market.