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Ever since the evolution of the blockchain and specifically cryptocurrencies, the world has witnessed the power of digitalization. Bitcoin is the very first cryptocurrency, despite having multiple use cases possessed a couple of limitations too, mainly the transaction speed. And hence many platforms were developed to overcome these limitations, Hedera Hashgraph also being one of them. It claims to be the only distributed ledger that uses a ‘fast, fair and secure’ Hashgraph mechanism which is fully decentralized.
Mainly designed to amplify the transaction speed, Hedera works on the mechanism where-in the speed increases when more transactions are added to the network. And hence to achieve a TPS of more than 100,000, it intends to compete with the leading payment platforms like VISA. However, in the current times, Hedera is capable of handling 6.5 million transactions per day with an average transaction time of 5 seconds.
What is Hedera Hashgraph(HBAR)-In Brief!
Hedera was invented by Leemon Baird which is a distributed ledger technology that utilizes a new form of distributed consensus offering a faster and more secure platform to run the dApps. It aims to offer lightning-fast throughput backed by an asynchronous Byzantine Fault Tolerance consensus mechanism. Hence to achieve the goal of high transaction throughput, Hedera has made some changes in its design which sets it aside from the other blockchains.
The mechanism allows only a specified amount of nodes to be involved in the validation process. By allowing only a restricted number of nodes the platform can increase finality time The platform raised nearly $124 million from the sales of its Simple Agreement of future tokens offerings(SAFT).
Additional Read: Daily Crypto News, February 11, 2022
How does Hedera Hashgraph Work?
Hedera works mainly to increase the speed of the transactions and hence to do so, the platform groups its transactions called Hashgraph. This data structure not only helps to fasten the transaction finality but also helps to be cost-effective. Here the nodes are constantly interacting with each other which was initially built for private use but used in a public network.
Hedera Consensus Mechanism
The Hedera Hashgraph network is powered by mainly two types of nodes, Consensus Nodes and Mirror Nodes. The Consensus node keeps track of transaction ordering & history just to ensure the completion of the transactions. On the other hand, the mirror nodes carry this information to the stakeholders throughout the network. And as a result, Hedera Hashgraph claims to offer features combining the advantages of both public and private blockchains.
Hedera Hashgraph Governance
The platform is governed by a council called the Hedera Governing Council which is responsible to run the consensus nodes determining the transactions. The council is made up of more than 35 members including top multinational corporations like Google, IBM, Boeing, etc.
The main functions of the council are to manage the software, voting process and allocation of funds correctly & safely complying with various jurisdictions. The members have limited terms working in the council. Moreover, while the mainnet is currently handled by the council, Hedera hopes to open it to anyone who wishes to operate in the future.
Will HBAR Price Hit $1 in 2022?
The HBAR price quickly geared up, since the very beginning of 2021 and rallied nearly 1400% in just a couple of months. No doubt the asset amid the extensive sell-off in May slashed more than 70% but within a very short time, it quickly flipped to hit the ATH at $0.58 by jumping nearly 280%. Ever since then the asset is swinging within the consolidation phase and descending phase forming constant lower highs and lows.
The asset reached the quarterly highs very close to $0.5 in Q4 and continued plunging heavily. Yet after drowning below $0.2, the HBAR price rebounded effectively and trended around $0.24 at the press time. If the asset maintains the current pace, then the asset may hit the levels around $0.7 to $0.75 by the end of the year 2022. Yet if the bull run gets ignited, then the possibilities of the asset rising above $1 are quite high. Conversely, if the asset falls prey to bears then the HBAR price could hover around $0.5 levels.
Additional Read: How will DeFi reshape the future of Finance
Factors Impacting HBAR Price Today
Secure and Unique Mechanism
Hedera uses the uniform time-strapping techniques which distances the algorithms away from the crowd and the asynchronous Byzantine Fault Tolerance System, the consensus mechanism that works for the security of the network.
High Speed With Low Costs
The platform is designed to minimize the transaction time drastically. Therefore the Hedera network can handle hundreds of thousands of transactions and can verify over a million signatures per second at an affordable cost.
The governance of the platform is the main unique feature of the network which consists of a council of members from multinational corporations. The governance body ensures decentralized decision-making, making stability and a no-fork guarantee.
Low Energy Consumption
Unlike Bitcoin where a huge number of miners jump in to validate the transactions which require huge energy, HBAR uses just about only 0.0002 KWh per transaction.
Where & How to buy Hedera Hashgraph(HBAR)
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