What is Hedera (HBAR) How it Works & Where To Buy It?

Hedera (HBAR) is an innovative public ledger software that utilizes its novel hashgraph consensus mechanism to facilitate transactions optimally. The Hedera network serves to bring its clients efficiency and nominal network fees through the Hedera hashgraph.

Hedera’s native token is the HBAR cryptocurrency, which powers the Hedera network.

Hedera has recently gained a significant amount of attention in the crypto space and is currently the 35th largest cryptocurrency by market capitalization.

 

How Hedera (HBAR) Works

Hedera is the only network that uses the hashgraph consensus algorithm – positioning it as a greener alternative that is also faster than traditional blockchain.

Essentially, the Hedera network can achieve lightning-fast transaction finality, without excessive energy output, while ensuring a high level of security. This is made possible through nodes that work together to facilitate transactions on the Hedera public network.

Currently, the mainnet nodes are run by a multitude of top companies including Google, IBM, Deutsche Telekom, LG, and Boeing.

In the future, a permissionless network will be established which allows anyone to run a node.

Decentralized applications can seamlessly be deployed on the Hedera network through innovative API integration. This primes Hedera as a public network that is superior in speed, functionality, and more energy-efficient than traditional blockchains.

The supported SDK (software development kit) allows decentralized application developers access to three main services: smart contracts, hashgraph consensus, and innovative tokens. This is all made possible through the simple and efficient API and SDK’s.

The HBAR cryptocurrency has rapidly grown to become the 35th largest cryptocurrency in the world by market cap.

 

What Is Hedera (HBAR) Used For?

Hedera is aiming to serve as the trust layer of the internet – facilitating more than 10,000 transactions per second at less than $0.0001 in transaction fees.

It can be considered a truly decentralized network once mainnet nodes become permissionless. This creates the potential to deploy DApps, process payments, and scale the network in a transformative way.

Currently, major companies are making use of Hedera network services – companies are utilizing the network as a payment processing solutions provider.

Compared to the Bitcoin network, where transactions are propagated in a few seconds but are only finalized up to an hour later, Hedera proves to be far more efficient with sub-5 second transaction finality.

The HBAR cryptocurrency, which powers the network, can also be traded like other cryptocurrencies. The volatility of the cryptocurrency makes it possible to trade HBAR for a profit through swing trading HBAR or arbitraging HBAR.

 

Where To Buy Hedera (HBAR)

Hedera (HBAR) has recently risen in popularity and its trading volumes on exchanges have seen a sudden surge in the past few months. It has quickly grown to become a well-known network and cryptocurrency. It is the 35th largest cryptocurrency in the world by market capitalization.

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

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

Five of the most popular crypto exchanges are:

1. Binance (US Customers use Binance.US)
2. Gate.io
3. Coinbase
4. KuCoin
5. Bitfinex

All of the above exchanges allow users to buy, sell, transfer and store HBAR tokens in a digital wallet on the exchange. You can use your debit or credit card to purchase HBAR tokens on centralized exchanges.

How long has Hedera (HBAR) existed?

Hedera was launched by Leemon Baird (creator of hashgraph) in 2017. The HBAR cryptocurrency was launched on August 24th, 2018. The Hedera governing council members include more than 30 leaders of the world’s top brands.

The launch was highly anticipated and many people in the crypto space positioned Hedera as a 3rd generation public ledger.

What’s controversial about Hedera (HBAR)?

The crypto market is fast-growing and new crypto projects are being introduced to the market at a rapid rate. It’s essential to do diligent research into crypto projects, and gain as many insights into the project, its history, tokenomics, team, and partnerships. The more you research, the more calculated your decisions will be.

Let’s take a look at the top two controversies surrounding Hedera (HBAR)

• Other Blockchains Already Provide The Same Solution – One of the most controversial aspects of Hedera is that it faces significant competition in the space – from a pure cost basis perspective and a functionality perspective.

  Hedera positions itself as a distributed ledger with fast and secure transaction finality. There are a host of innovative blockchains that offer the same solutions. From a pure cost basis, the token has performed well but is still not one of the top coins by market cap.

• Slow Ecosystem Growth – The Hedera governing council announced its intent to build an ecosystem that prioritizes decentralized finance and innovative DApp development. However, the ecosystem hasn’t seen nearly as much popularity or development in comparison to other projects.

  For example, the Ethereum ecosystem has more than $110 billion in TVL (total value-locked). Whereas the Hedera ecosystem has only $55 million in TVL.

   

How many Hedera (HBAR) tokens are there?

At the time of writing, HBAR has a circulating supply of 19.57 billion HBAR (39% of the total supply).

The total supply of Hedera (HBAR) is 50,000,000,000.

Can HBAR be mined?

Hedera (HBAR) is not a mineable cryptocurrency. HBAR unlike Bitcoin can’t be mined. Hedera uses a proof of stake consensus algorithm, called the hashgraph consensus mechanism.

However, many individuals earn yields through proxy staking – staking HBAR tokens in someone else’s node.

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

What is the market cap of Hedera (HBAR)?

The market cap of Hedera (HBAR) is:

Hedera (HBAR) market cap = total amount of coins in circulation x current market price of HBAR

Hedera (HBAR) Market Cap = 19,570,000,000 HBAR x $0,1942 = $3,80 billion (35th largest market cap)

Hedera has recently garnered a great amount of hype and attention in the media – some users see Hedera as the most efficient network (green) with global scalability.

It is however currently one of the top 50 cryptocurrencies by market capitalization and continues to grow in popularity as the project attracts more investment and users.

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

 

Biggest Competitors Of Hedera (HBAR)

Hedera aims to revolutionize the supply chain by offering enterprises novel blockchain technology for their payment processing.

When considering Hedera’s competitors, it’s important to factor in projects that aim to provide solutions for the same problem.

One of Hedera’s largest competitors is Stellar (XLM).

Both operate as distributed ledgers which serve to provide rapid transaction finality and process a large capacity of transactions, at nominal fees.

Let’s break down the similarities and differences between the two competitors:

Hedera

• 10,000 transactions per second
• < $0.0001 transaction fee
• Supports smart contracts
• $55 million TVL
• 50 billion token supply
• $3,8 billion market cap (35th largest)
• Founded in 2017
• Processed 1 billion transactions

 

Stellar

• 3,000 transactions per second
• $0.000004 transaction fee
• Supports smart contracts
• $41 million TVL
• 50 billion token supply
• $5,03 billion market cap (28th largest)
• Founded in 2014
• Processed more than 1,8 billion transactions

 

What are the future plans for Hedera Network and HBAR token

Hedera already has dozens of companies using its network, accounting for more than 1,4 million transactions per day.

Future plans involve transitioning the mainnet from a permissioned network to a permissionless network, where anyone can be a node.

The Hedera governing council is compromised of some of the largest leaders spanning several industries – this is indicative of the massive potential Hedera has.

Hedera hashgraph, with its innovative reward nodes mechanism, is seen as one of the most lucrative crypto investments – especially when considering the names backing the project.

Pros and Cons of Hedera Hashgraph and HBAR

Pros:

• High Throughput Of Transactions – Hedera’s network can process up to 10,000 transactions per second. It also maintains its network security through a network of nodes that handle the verification and finality of transactions.
• Cheaper Than ETH and BTC – Among the biggest pros for Hedera hashgraph is that its network is considerably cheaper than the likes of the Ethereum and Bitcoin networks.
• Supports Smart Contracts – The platform supports Solidity which is used in deploying smart contracts.
• Energy-efficient – Hedera is among the most energy-efficient networks in the crypto space. This primes it as an eco-friendly alternative to other traditional blockchains such as Ethereum, which is extremely energy-intensive. As the world transitions toward carbon neutrality, Hedera hashgraph is already perfectly positioned with its green blockchain technology.

 

Cons:

• Not Open-sourced – Hedera hashgraph is a patented is patented, whereas most other projects aren’t. Many consider this to lend itself toward centralization, rather than decentralization.
• Council Members Run Nodes – At the moment, the mainnet of Hedera is permissioned. This means that only council members can run nodes – this is seen as centralized by many people.

  Hedera has announced its intention to change the mainnet to permissionless, which would allow anyone to run a node.

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