What is Harmony (ONE)?

Deep Dive

1. Technology & Architecture

Harmony uses random state sharding to split its network into four parallel chains, each processing transactions independently. This allows the network to handle ~2,000 transactions per second (TPS) with 2-second finality.

Its Effective Proof-of-Stake (EPoS) consensus supports thousands of validators, reducing centralization risks. Unlike traditional PoS, EPoS distributes rewards more evenly to smaller stakeholders.

Recent upgrades include Stream Sync (peer-to-peer block sharing for faster node synchronization) and compatibility with Ethereum’s BLS12-381 cryptography, enabling zero-knowledge proofs for privacy-focused dApps (Harmony).

2. Tokenomics & Governance

The ONE token powers staking, fees, and governance:
- Fixed supply: 14.8 billion ONE (all circulating).
- Transaction fees burned: 70% of fees are permanently removed, creating deflationary pressure.
- Open Staking: Users delegate ONE to validators, earning ~8-10% annual rewards.

Decisions like protocol upgrades or grants are voted on via SnapshotX, a gas-free governance platform.

3. Key Differentiators

Harmony emphasizes cross-chain functionality:
- Horizon Bridge: Over $560M in assets bridged between Ethereum and Harmony.
- Trustless BTC Bridge: Allows Bitcoin to be used in Harmony’s DeFi ecosystem without custodians.

It also targets niche use cases like on-chain gaming (e.g., DeFiKingdoms) and NFT utilities, partnering with projects like The Sandbox to enable interoperable digital assets (Harmony Partnership).

Conclusion

Harmony is a sharded, eco-friendly blockchain balancing speed, low costs, and cross-chain connectivity—ideal for dApps requiring high throughput. With its Q1 2026 hardfork targeting 1-second finality, can Harmony regain momentum in a crowded Layer 1 market?