… but what is Hedera?

Hedera is a public, decentralized distributed ledger network that does not use traditional blockchain technology, but a patented consensus algorithm called Hashgraph. It is designed for speed, security and fairness, targeting applications that require high performance and reliability, especially in the enterprise sector. The native cryptocurrency of the Hedera network is HBAR, which has several key functions: it secures the network through a Proof-of-Stake mechanism, is used to pay transaction fees for using network services, and is used to weight votes in future governance mechanisms. Hedera offers four basic services:

• consensus service,
• token service - tokenization service,
• smart contract service,
• File Service - File service.

Learn about Hedera's story

Hashgraph technology was invented by Dr. Leemon Baird, co-founder and chief scientist of Swirlds, the company that owns the rights to the algorithm. Dr. Baird, along with Mance Harmon, the other co-founder and CEO of Swirlds, decided to make this technology available to a wider audience by creating the public Hedera network. Work on the project formally began in 2017. A key element of Hedera's governance model is Hedera's Governing Board, consisting of up to 39 global organizations and companies from various sectors, such as Google, IBM, Boeing, Deutsche Telekom, LG, Standard Bank and Nomura. Each board member has an equal voice in deciding on network direction, software updates, and policy. The Hedera mainnet was launched to the public in 2019, providing consensus, tokenization, and smart contract services. Hedera's development history is closely tied to its governance model, which is designed to provide stability and a long-term vision, distinguishing it from many more decentralized but potentially less stable projects. Understanding the evolution of such unique DLTs can be facilitated by educational resources such as e-learning.

Technological analysis of Hedera

At the heart of Hedera is the Hashgraph consensus algorithm. Unlike blockchains that build a linear blockchain, Hashgraph uses an acyclic graph structure directed to record transactions and their order.

The key features of this mechanism are:

1. Gossip about Gossip Nodes in the network exchange information about transactions and who and when exchanged this information. This allows a quick consensus on the sequence of events to be reached.
2. Virtual voting Instead of actually sending votes through the network, nodes can deterministically calculate how other nodes would vote based on the information they have from the gossip protocol.
3. Asynchronous Byzantine Tolerance Hashgraph is considered an aBFT, which means that it guarantees that consensus is reached on the order and validity of transactions, even if some nodes are acting maliciously or failing, and without assumptions about time synchronization on the network.

This allows Hedera to achieve high throughput, theoretically exceeding 10,000 transactions per second for the HBAR cryptocurrency service, and very fast transaction finalization. The network is secured by a Proof-of-Stake mechanism, where HBAR holders can delegate their tokens to the network's nodes, contributing to its security and receiving rewards in return. Hedera Smart Contract Service is compatible with the Ethereum Virtual Machine, making it easy to migrate and build applications in the Solidity language. Hedera Token Service allows for the native issuance and management of tokens without the need to write complex smart contracts, which reduces costs and increases efficiency. For those looking to explore these unique technological aspects, the Webinar Academy platform can offer relevant materials.

Hedera vs other cryptocurrencies

When comparing Hedera with other crypto projects and DLT platforms, it is important to highlight its unique features. With respect to Bitcoin, which is mainly a peer-to-peer payment system and digital gold based on energy-intensive Proof-of-Work, Hedera offers much higher throughput, lower fees, faster finalization, and a wider range of services. Relative to Ethereum, Hedera also shows advantages in terms of transaction speed and costs. Ethereum, while holding the largest DeFi and NFT ecosystem, is struggling with scalability issues that it is trying to solve through layer-two development and switching to Proof-of-Stake. Hedera's governance model, based on a board of global corporations, is often cited as a stabilizing factor and a driver of adoption by large enterprises, but it also raises questions about the degree of decentralization compared to more open governance models such as Ethereum and Bitcoin. Unlike many blockchain projects that are fully open and permissive from the start, Hedera uses a permissioned network model for consensus nodes, but at the same time, it is a public network that anyone can use. Understanding these differences is crucial for assessing your investment potential, and the Webinar Academy training platform can offer comparative courses.

Hedera Future Analysis

Hedera's future appears to be strongly tied to its ability to attract and serve large enterprise customers and build an ecosystem of applications. High performance, low and predictable fees, and stable management make it an attractive platform for solutions that require reliability and scalability, such as:

• payment systems,
• supply chain management,
• digital identity,
• tokenization of assets,
• institution-oriented decentralised finance.

Hedera's development plans include further increasing capacity, expanding the functionality of network services, and gradually moving towards greater decentralization. Growing the developer community and promoting the adoption of HBAR and network services will also be key to success. Potential challenges include competition from other DLT platforms, the pace of adoption of distributed ledger technology by the corporate sector, and possible changes in the regulatory environment. Continuous innovation and adaptation to market needs will be essential. For those wishing to stay up to date with Hedera's developments, Webinar Academy can offer up-to-date analysis and materials. It is also worth keeping track of how various online training courses approach the analysis of these types of platforms. Hedera Hashgraph provides an intriguing alternative to traditional blockchain technologies, offering a unique combination of high performance, security, and a stability-oriented governance model. Its native cryptocurrency HBAR is an integral part of the ecosystem, performing security and utility functions.

While the board-based governance model of global companies raises debates about decentralization, it also provides the platform with the credibility and resources it needs to compete in the global marketplace. The future will tell whether Hedera will be able to use its strengths to build a dominant position in the DLT-based enterprise applications sector. Understanding the specifics of Hedera is essential for anyone interested in innovation in the digital asset space, and a dedicated training platform can be a valuable resource.