Deep Dive
1. Purpose and value proposition
Hedera provides shared infrastructure for recording transactions and running applications. Its built in services support uses such as creating and managing digital tokens, executing smart contracts, and recording the order and time of messages. These tools can be used by developers and organizations building applications on a public network. (CoinMarketCap)
2. Technology and architecture
Hedera is a distributed ledger, meaning multiple computers maintain and agree on a shared record. Instead of grouping transactions into blockchain blocks, it uses hashgraph, a method for nodes to share information and reach agreement on transaction order. HBAR staking contributes to the network’s proof of stake security model. (CoinMarketCap)
3. HBAR and governance
HBAR is the network’s native token. Users pay fees in HBAR for transactions and services, including smart contracts and file storage; holders can also stake HBAR to support network security. Hedera’s governing council oversees major network decisions, so governance is council led rather than direct voting by HBAR holders. (CoinMarketCap) (CMC overview)
Conclusion
Hedera is a public ledger built around hashgraph consensus and network services, while HBAR supplies fees and staking for its operation. How effectively can those services support useful applications at scale?
