Hedera is a public distributed ledger technology (DLT) network where developers can build assets and decentralized applications (DApps). The Hedera network supports smart contracts and uses its unique consensus algorithm, hashgraph, powered by its native cryptocurrency, HBAR.
Understanding Hedera, Hashgraph, and HBAR
What Is Hedera (HBAR)?
The crypto industry hosts numerous mainnet blockchains for building solutions. While blockchains are a type of DLT, not all DLT networks are blockchains. Hedera, for instance, is a DLT network but not a blockchain.
How Does Hedera Work?
Hedera employs its proprietary consensus algorithm, hashgraph, which combines:
- Proof-of-Stake (PoS)
- Asynchronous Byzantine Fault Tolerance (aBFT)
Key features of Hedera include:
- High-speed transactions
- Enhanced security
- Low fees
Hedera positions itself as third-generation public ledger technology, surpassing Bitcoin (1st gen) and Ethereum (2nd gen).
Governance and Network Consensus
- Nodes staking HBAR maintain network consensus.
- The Hedera Global Governing Council oversees governance, comprising global organizations across industries.
- Swirlds Inc. (creator of hashgraph) is the council’s permanent member.
HBAR: The Native Cryptocurrency
HBAR serves multiple purposes within the Hedera ecosystem:
- Payment method for network activities.
- Fuel for smart contracts and DApps.
Tokenomics
- Max supply: 50 billion HBAR.
- Live price: Check the real-time HBAR-to-USD chart above.
FAQs About Hedera and HBAR
1. Is Hedera a blockchain?
No, Hedera is a DLT network using hashgraph consensus, not blockchain.
2. What makes hashgraph unique?
It combines PoS and aBFT for speed, security, and decentralization.
3. How is HBAR used?
HBAR pays for transactions, staking, and smart contracts on Hedera.
4. Who governs Hedera?
The Hedera Global Governing Council, including Swirlds Inc.
5. Where can I track HBAR’s price?
Use the live price chart at the top of this page.