What is Hedera (HBAR)?

Deep Dive

1. Purpose and services

Hedera provides shared digital infrastructure where applications can record transactions and data. Its network services include tools for creating and managing tokens, running smart contracts, and recording messages in a verifiable order. These can support applications such as payments, tokenized assets, and data tracking. (CoinMarketCap’s Hedera overview)

2. Technology and governance

Hedera is a distributed ledger, meaning copies of its records are maintained across network nodes. Its hashgraph consensus algorithm is an alternative to the block based structure used by many blockchains: nodes share transaction information and agree on its ordering. Hedera uses proof of stake, a method in which token weight helps secure consensus. A Governing Council makes key network decisions.

3. HBAR’s role

HBAR is Hedera’s native token. Users pay network fees in HBAR for transactions and services, including smart contract execution and file storage. HBAR can also be staked, which contributes to network security. The maximum supply is 50 billion tokens. (CoinMarketCap’s Hedera overview)

Conclusion

Hedera is a public ledger platform built for applications and services, while HBAR pays for its use and contributes to its security. How well can its ledger services support a broad range of real world applications?