Deep Dive
1. Purpose and services
Hedera provides infrastructure for developers and organizations to create applications and record activity on a shared network. Its services include smart contracts, token creation and transaction timestamping. In plain terms, these let builders run programmatic agreements, issue digital assets and create verifiable records. (CoinMarketCap: Hedera)
2. How the network works
Hedera uses Hashgraph, a distributed ledger design that differs from blockchains, where transactions are grouped into sequential blocks. In Hashgraph, network participants share information about transactions so the network can agree on their order. Hedera uses proof of stake, a method for securing a network that relies on token holders staking assets rather than energy intensive mining.
3. What HBAR does
HBAR is used to pay for Hedera network services, including transactions and smart contract activity. Holders can also stake HBAR to support network security. Network decisions are overseen by the Hedera Council, so holding HBAR does not itself mean a holder has direct voting control over those decisions. (CoinMarketCap: Hedera)
Conclusion
Hedera is the network and application platform; HBAR is the token used to pay for its services and support its security. How well can its Hashgraph based services support useful applications at scale?
