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Cryptocurrencies

Hedera

Hedera (HBAR)

Hedera is a public ledger platform that uses the Hashgraph consensus mechanism to enhance speed and security. It facilitates transactions and supports decentralized applications (Dapps), while also focusing on transparency and environmental sustainability.

Overview of Hedera

Hedera Hashgraph was founded in 2017, following the invention of the Hashgraph consensus algorithm by Leemon Baird in 2015. The platform was publicly launched in March 2018, revealing its website, cryptocurrency, governing body, and a whitepaper. Hedera is a distributed ledger technology network that enables users to conduct transactions securely without third-party involvement, aiming to provide a stable network for enterprise-grade applications. It uses the native token $HBAR to power its ecosystem.

hedera background
Ticker HBAR
Category Protocol
Website https://www.hedera.com/
Twitter @hedera
Telegram hederahashgraph
Reddit https://www.reddit.com/r/Hedera/

Hedera's technology and partnerships

Hedera employs asynchronous Byzantine fault tolerance (aBFT) for security and faster processing than traditional blockchain platforms. The network's consensus is achieved through node communication, overseen by a council of 39 organizations. In August 2024, Copper, a London-based custodian, partnered with Hedera to expand institutional access, offering custody and staking services.

Funding initiatives

In August 2018, Hedera raised $100 million to enhance its platform. The HBAR Foundation announced a $155 million fund in March 2022 to support the Hedera ecosystem and various projects.

Hashgraph consensus algorithm

Hedera utilizes the Hashgraph consensus mechanism, supported by consensus and mirror nodes. Consensus nodes, managed by the Hedera Governing Council, determine transaction ordering, while mirror nodes disseminate information. This approach offers greater security and stability compared to traditional blockchains.

Governance structure

Hedera is governed by the Hedera Governing Council, consisting of 39 members, including companies like Google and IBM. The council manages consensus nodes and votes on software changes, ensuring legal protection and network stability.

Hedera Governing Council

Formed in 2019, the council initially included members such as Deutsche Telekom and IBM. In 2021, it announced a significant allocation to develop the Hedera ecosystem. Dell joined the council in 2023, planning to create decentralized applications.

$HBAR and its roles

HBAR is the official currency of the Hedera network, facilitating transactions and maintaining security. It is used to pay transaction fees and powers various network services.

Tokenomics

The distribution of HBAR tokens is structured to support the network's growth and security.

Staking on Hedera

Hedera employs a proof-of-stake consensus, where node influence is based on staked HBAR. The staking process has four phases, allowing nodes to participate in consensus and earn rewards.

Staking nodes and rewards

Nodes must meet specific staking thresholds to earn rewards, with no lock-up period for staking balances. The Hedera Governing Council sets staking reward rates based on ecosystem needs.

Hedera services

Hedera Consensus Service (HCS)

HCS provides decentralized logs of events for applications, offering consensus with public trust and privacy. It supports various use cases, such as asset tracking and IoT monitoring.

Hedera Token Service (HTS)

HTS is a tokenization platform that enables fast, low-cost transfers of fungible and non-fungible tokens. It integrates with the Hedera Smart Contract service for diverse applications.

Hedera Smart Contract Service

This service allows the creation of decentralized applications using Solidity, optimized for hashgraph consensus. It supports token exchanges and offers transparency and efficiency.

Healthcare applications

Hedera's technology aids healthcare providers in managing trial data and medical records. Safe Health Systems uses Hedera for secure, verifiable logs of patient information, enhancing trust and compliance.

Management team

  • Betsabe Botaitis: Chief Financial Officer & Treasurer
  • Sam Brylski: Chief Regulatory Officer
  • Alex Popowycz: Chief Information Officer
  • Nilmini Rubin: Chief of Staff & Head of Global Policy
  • Tom Sylvester: General Counsel & Secretary

Board of directors

  • Tasker Generes
  • Pradeep Iyer
  • Brian P. Jeffords
  • Brett McDowell
  • Monique Morrow
  • Shyam Nagarajan
  • Ian Putter
  • Scott Thiel