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Wrapped HBAR represents Hedera, an enterprise-grade public network founded by Dr. Leemon Baird and Mance Harmon. It utilizes a unique hashgraph consensus algorithm to enable fast decentralized applications, smart contracts, and token services. The native HBAR token fuels these operations and secures the platform, with a total supply cap of 50 billion units.
Hedera is an enterprise-grade public network designed for the decentralized economy, enabling individuals and businesses to build robust decentralized applications (DApps). It aims to provide a fairer and more efficient system by addressing limitations found in older blockchain platforms, such as instability and slow performance.
The project was funded via an initial coin offering (ICO) in August 2018, allowing investors to buy the native utility token, HBAR, at the lowest possible price. Open access to the mainnet launched just over a year later, in September 2019.
HBAR serves two primary functions on the Hedera public network. First, it acts as the fuel for services like smart contracts, file storage, and standard transactions. Second, it helps secure the network, as users can stake their tokens to maintain platform integrity.
Hedera Hashgraph positions itself as an alternative to traditional blockchain technology, focusing on speed, efficiency, and security. While older blockchains often use proof-of-work (PoW) and newer ones use proof-of-stake (PoS), Hedera uses a unique structure built from scratch. It operates on a PoS model intended to boost transaction verification efficiency, enhance security, and protect against hacker attacks. The ecosystem relies on the hashgraph consensus algorithm and a global enterprise governing body.
As a distributed ledger technology (DLT), Hedera differs from other blockchains by using the hashgraph consensus algorithm. This approach aims to process transactions faster, remove delays, and stabilize the transactions per second (TPS) rate. Hashgraph is claimed to offer improvements in speed, cost, and scalability.
Core network services include:
The hashgraph goal is to increase transaction speed, with a focus on high-volume operations like micropayments, data integrity, and tokenization. Similar to the EVM, Hedera maintains a virtual machine for writing smart contracts in Solidity and offers built-in KYC and AML checks.
Technically, Hedera is a hashgraph, not a blockchain. In this consensus algorithm, users agree on the transaction order. Unlike blockchains, no block equivalents are discarded; all transaction branches are merged and used to reach consensus.
A key feature is the Gossip-about-Gossip protocol. According to Dr. Leemon Baird, Hedera’s inventor, nodes randomly transmit data about themselves to other nodes via hashgraph using the Gossip protocol. This allows all nodes in a cluster to become familiar with each other, forming a data structure containing a payload of transactions, a timestamp, a digital signature, and hashes to previous structures.
HBAR powers applications on the network, covering network services, transaction fees, in-app payments, and micropayments. Developers use HBAR to pay for fees related to smart contracts, file storage, and currency exchange. The token also incentivizes and pays network nodes.
Hedera Hashgraph features a distinct decentralized governance system. The Governing Council makes all critical decisions regarding pricing policy, software updates, and wealth management.
Hedera Hashgraph was established by two individuals: Dr. Leemon Baird and Mance Harmon.
Dr. Leemon Baird, who serves as Hedera’s chief scientist, is recognized for investing in the hashgraph distributed consensus algorithm. Before launching Hedera Hashgraph, he gained over ten years of expertise in security and computer science positions, including a role as a senior research scientist at the Academy Center by Cyberspace Research. He also acts as the co-founder and CTO of Swirlds Inc., a platform designed for constructing DApps.
Mance Harmon operates as Hedera’s CEO. He is a veteran entrepreneur and technology executive with approximately twenty years of experience in leadership roles at major companies, frequently within the IT security sector. Similar to Dr. Baird, Harmon is also a co-founder of Swirlds Inc., where he serves as CEO.
Beyond these founders, the Hedera leadership team includes more than a dozen other professionals, many of whom possess notable career histories.
Hedera Hashgraph distinguishes itself from the majority of cryptocurrency platforms by avoiding traditional blockchain architecture. It utilizes a distinct form of distributed ledger technology called a Hashgraph.
This approach aims to outperform blockchain-based competitors in terms of scalability, cost, and speed. According to the platform, transactions usually achieve finality in less than five seconds and carry an average fee of only $0.0001 USD. Hedera Hashgraph states it is capable of processing over 10,000 transactions per second (TPS), whereas most well-known proof-of-work (PoW) blockchains manage approximately 5-20 TPS.
The network provides several core services:
The total supply cap for Hedera Hashgraph’s HBAR token stands at 50 billion units. As of January 2021, nearly seven billion coins were circulating, representing approximately 14% of that total. Hedera releases periodic updates outlining future token unlock schedules.
Data from Hedera indicates that each of the two project founders received a grant of two billion HBARs, accounting for 4% of the total supply apiece, with these assets vesting over six years. Senior executives who joined before 2018 hold grants ranging from 250 million to 300 million coins, which are scheduled to finish vesting in December 2021. The Economics Whitepaper, issued in June 2020, projects that roughly 17.03 billion HBAR—equal to 34% of the total supply—will be in circulation by 2025.
The Hedera Hashgraph network relies on a unique mechanism called Hashgraph consensus to maintain security. This system is overseen by a rotating governing council made up of as many as 39 diverse organizations from up to 11 distinct industries. These entities are responsible for steering the Hedera codebase, casting votes on platform choices, and running the initial nodes on the public network.
Hedera employs an innovative version of proof-of-stake (PoS) that enables HBAR holders to stake their assets to support network protection. Currently, every Hedera node is operated either by Hedera directly or by members of the governing council, though the team plans to transition to a permissionless model in the future.
In summary, this security architecture allows Hedera to attain “asynchronous” Byzantine fault tolerance (ABFT). This ensures that the sequence and timing of transactions remain guaranteed, even if certain data experiences delays or loss.
You can trade the widely held digital asset HBAR on major exchanges such as Binance, Bittrex, and Huobi Global. Common crypto-to-crypto pairs include HBAR/USDT, HBAR/BTC, and HBAR/ETH. Additionally, fiat trading options are available, specifically HBAR/USD, HBAR/KRW, and HBAR/INR.