Hedera (HBAR) is a cryptocurrency that runs on a blockchain known as a hashgraph. The Hedera Hashgraph enables cryptocurrencies, smart contracts, and distributed apps (DApps). Hedera is owned and backed by some of the biggest corporations in the world and uses a different version of the proof-of-stake consensus algorithm to offer faster transaction times, lower fees, and lower energy use compared to other cryptocurrencies.
To better understand how Hedera works, the unique features of the Hedera Hashgraph, and if Hedera makes sense for your cryptocurrency strategy, keep reading this guide to Hedera.
What Is Hedera?
Hedera is a cryptocurrency on the Hedera Hashgraph, a unique type of blockchain. The Hedera Hashgraph powers cryptocurrencies, smart contracts, and DApps.
The Hedera Hashgraph is supported by a different version of the proof-of-stake consensus protocol and transaction validators are incentivized by the HBAR currency.
Hedera is owned and governed by major corporations such as Google, IBM, Boeing, LG, T-Mobile, Nomura, Deutsche Telekom, and others.
Chainlink Labs is also a part of Hedera’s governing council.
Special Features of Hedera
Hedera relies on a unique communication protocol that’s different from proof-of-work blockchains like Bitcoin. The Hedera distributed ledger runs on a group of nodes operated by large companies like Google and IBM using a “gossip protocol” algorithm to ensure fast, low-cost transactions.
According to Hedera, the network can handle more than 10,000 transactions per second with a three- to five-second settlement and confirmation time. The average cost of a transaction on Hadera is just $0.0001 cent, requiring a fraction of the energy consumed by the best-known blockchains.
|Already Mined/ Total Supply (as of Aug. 10, 2021)||9.29 billion current circulating supply 50 billion maximum supply|
|Special Feature||Fast, low-cost transactions for cryptocurrencies, smart contracts, and distributed applications|
How To Mine Hedera
The consensus behind the Hedera network comes from different high-powered nodes that communicate with the gossip protocol, pushing recent transaction histories from local nodes out into the network for extremely fast final settlement times.
Nodes that validate transactions on Hedera Hashgraph need to be invited to become a part of the network.
How To Buy Hedera
If you decide the HBAR coin is right for your cryptocurrency portfolio or strategy, consider these tips to purchase and store your digital currency:
To store HBAR currency, you’ll need a compatible cryptocurrency wallet. Major software wallets with Hedera compatibility include Atomic Wallet, Coinomi, Exodus, and others. For hardware wallets, your best bet today is Ledger, though other wallets may be added in the future.
As with any cryptocurrency, it’s vital to only send HBAR to a compatible wallet address. Keep your wallet information and backup codes secret and secure, as they give anyone the power to unlock your wallet and access your holdings.
According to Hedera, the average transaction completes in three to five seconds with final confirmation.
Fees and Expenses
Fees on the Hedera network are paid for with HBAR currency. The average cost per transaction comes out to $0.0001 cent when measured in United States dollars.
Other Ways To Invest in Hedera
Several digital wallets offer custodial support for HBAR, opening up opportunities to invest. Custodial wallets with Hedera support include BitGo, Fireblocks, and Kingdom Trust. While you need a third-party investment manager to use BitGo and Fireblocks, Kingdom Trust offers IRAs and other tax-advantaged accounts to individual users.