Hedera Hashgraph is a platform for decentralized (smart-contracts-based) applications. It empowers its users with four modular services - Consensus, Tokens, Smart Contracts, and File Service. All services are built atop its patented hashgraph consensus algorithm.
As of 2021, Hedera Hashgraph distributed ledger consists of permissioned nodes controlled by Hedera Governing Council. At the same time, the project is focused on a migration towards a fully decentralized (permissionless) model.
Unveiled in Q4, 2020, Hedera Hashgraph targets enterprise-centric use-cases (e.g. industrial ‘Blockchain-as-a-Service’ ecosystems). In the coming months, Hedera Hashgraph’s team is going to release state proofs, live hashing instruments and staking options.
How does Hedera Hashgraph handle transactions?
Hedera Hashgraph promotes its hashgraph algorithm as a’faster, more secure alternative to blockchain consensus mechanisms’. The most obvious advantage of hashgraph over blockchain is its efficiency: hashgraph doesn’t waste resources on ‘stale’ blocks. Also, Hedera Hashgraph transactions are low-cost compared to that of mainstream blockchains.
Hedera Hashgraph utilizes a modification of ‘Proof-of-Stake’ consensus without slashing. In terms of security, all Hedera transactions are encrypted with TLS 1.2 mechanisms and adhere to CNSA Suite military-grade security standard.
Also, Hedera Hashgraph uses novel asynchronous Byzantine Fault Tolerant (aBFT) consensus. This is the strongest form of BFT that completely prevents malefactors from gaining control over the network. Hedera Hashdraph uses a so-called ‘gossip protocol’ for getting its nodes synchronized between each other.
How does Hedera Hashgraph connect public and private blockchains?
Hedera Hashgraph solutions are utilized by a plethora of businesses from digital assets heavyweights (Chainlink, Hyperstack) to IoT pioneers (Seun, Power Transition). Also, the instruments by Hedera Hashgraph are of great importance for micropayments, supply chain, and decentralized governance frameworks.
Also, Hedera Hashgraph created permissioned distributed systems for the number of iconic corporations like Boeing, IBM, Google and so on. Building bridges between public (permissionless) and private (permissioned) networks is among Hedera’s most interesting use-cases.
Finally, the Hedera Consensus Service (HCS) allows implementing decentralized methods into Web2 applications and connecting different blockchain between each other.
How does Hedera Hashgraph utilize HBAR token?
HBAR (also hbar) is a core native utility asset of the Hedera Hashgraph ecosystem. It’s mission is dual: it is a backbone of Hedera Hashgraph’s tokenomics (‘network fuel’) and the instrument to protect the network from malefactors’ attacks.
Therefore, users can pay in HBAR for the entire set of network services like token minting, value transferring, logging data, and so on. Users are charged HBAR-denominated fees proportionally to the bandwidth and memory they demand.
HBAR tokens are involved in staking mechanisms: to attack the network, a hypothetical hacker needs to control more than one-third of all HBARs in circulation, which is totally impossible.