Hedera injecting funds to fuel DeFi adoption
Hedera recently made an announcement of $5B Fund for ecosystem development dedicated to boost their adoption in decentralized finance sector.
Often touted as a world-changing technology, Blockchain has its own shortcomings. Speed & security are the most addressed ones. Hedera Hashgraph aims to offer an alternative to Blockchains. Let’s take a closer look at the network & why it is being called “the blockchain killer”.
The Hedera Ecosystem Fund
The Hedera Governing Council has announced allocation of 10.7 billion $HBAR , currently worth US $5 billion, towards the development of the Hedera ecosystem.
What is a Hedera Hashgraph?
The Hedera proof-of-stake public network, powered by hashgraph consensus, aims to achieve the highest grade of security possible (ABFT), with transaction speeds & low bandwidth consumption. By combining high-throughput, low fees, & finality in seconds, Hedera leads the way for the future of public ledgers.
The platform supports the same object-oriented programming language that Ethereum uses, known as Solidity. By enabling smart contracts, the platform can be used to build dApps, which can be used for a variety of use-cases, including gaming, DeFi products, digital identity, & more.
Unlike many cryptocurrencies, Hedera Hashgraph isn’t open source. Instead, the technology is patented, preventing developers from forking the protocol to create their own public versions.
How does Hedera work?
Hedera uses their core technology known as Hashgraph to increase scalability & lower transaction costs. In contrast to blockchain blocks of data, Hashgraph provides a graph of connected hashes where members exchange information over the network.
Its technology is not open source, instead it is open review implying that the code is available only for reviewing, compiling & testing, but not for any other use. This is to protect against any possible forks of Hedera.
But, their stroke of genius is their adoption of the fastest way of human communication- gossip. Using gossip as a blueprint, Hedera created the gossip-about-gossip protocol behind the hashgraph algorithm.
This process of data sharing and distribution enables the system and members to achieve consensus. The graph of events on the system creates an immutable record of node communication.
What is HBAR token?
The Hedera Hashgraph token, commonly denoted as HBAR, is the native cryptocurrency of the Hedera network.
HBAR has two roles in Hedera Hashgraph. The first role is to fuel services like transactions, file storage, & execution of smart contracts, & the second role is to secure the network through staking. HBAR holders stake their HBR tokens to help maintain the integrity of the blockchain platform.
HBAR witnessed a rise recently which can be attributed to a growing list of ecosystem partners and the introduction of nonfungible token (NFT) minting capabilities to the network.
Consensus
To reach consensus, instead of mining, nodes on the Hashgraph "gossip" with each other with virtual voting, comparing notes on the transaction history of the network.
The history of how these events are related to each other through their parent hashes is called gossip about gossip. This history expresses itself as a type of directed acyclic graph (DAG), a graph of hashes, or a hashgraph. The hashgraph records the history of how members communicated.
Every node within a network needs to talk to each other. This is the premise of the Gossip over Gossip method. Virtual Voting works differently when compared to the “Gossip about Gossip.” Virtual Voting is used to reach a consensus for deciding the order of the transactions.
The hashgraph algorithm is asynchronous Byzantine Fault Tolerant (aBFT). This is a technical term meaning that no single node (or small group of nodes) can prevent the network from reaching consensus, nor can they change the consensus once it has been reached.
Hedera vs other blockchains
Wallets on Hedera
MyHBAR wallet
HEX wallet
To explore more on wallets visit :- https://hedera.com/buying-guide
Some platforms on Hedera
📈 Virtual trading platform TrakInvest.
🚜 Agryo, a farming loan platform that's building a decentralized data-driven prediction model.
💰 Carbon, which has launched the first stablecoin on Hedera.
🏬 AdsDax — a fast and fair ad marketplace built on Hedera.
What are the use cases?
Hedera has many use cases in sectors like payments, tokenized assets, fraud mitigation, identity, data compliance, permissioned blockchain, enterprise, healthcare and gaming.
Some of them are-
AlianceBlock
AllianceBlock is building the future of finance. It is creating a protocol that will bridge decentralized finance (DeFi) and traditional finance (TradFi), allowing both sectors to benefit from one another.
https://allianceblock.io/
Acoer
By using Hedera, supply chain collaborators can have transparency and auditability throughout the system. Acoer aims for this to reduce the frequency of drug shortages and have better predictability.
https://www.acoer.com/
eftpos
eftpos is Australia’s debit card system, accounting for more than 2 billion CHQ and SAV transactions in 2019 worth around $130 billion and has collaborated with hedera hashgraph to facilitate blockchain based payments.
https://www.eftposaustralia.com.au/
Earth-ID
Earth ID is a decentralized identity management platform, which aims to provide a secure, consolidated identity.
https://www.myearth.id/
GoMint
GoMint is a digital content and eventually real-world asset tokenization and monetization engine that runs on Hedera Hashgraph.
https://www.gomint.co/
Plugins
Plugins are microservices that make it easy to integrate your existing application or permissioned blockchain framework with a Hedera network using Hedera Consensus Service. It includes enterprise blockchains like corda, hyperledger, apache log4j etc.
In February 2020, Hedera Hashgraph also onboarded Google to its governing council—arguably its biggest partnership yet. As part of the arrangement, Google will run a Hedera network node, and will help participate in governance of the network.
Hedera as an enterprise-oriented project
Many cryptocurrency projects have decided to cater specifically to private and public institutions in the hope of securing some of their lucrative tech contracts. Hedera is one such project that is hoping to crack this enterprise-blockchain space.
For diversity & stability, Hedera is governed and backed by a global council of organizations and blue-chip enterprises including Swirlds Corporation, Boeing, Deutsche Telekom, Google, IBM, & many more. Clearly, Hedera has made incredible strides in institutional adoption.
The Hedera Governing Council has announced the approval of a plan to allocate $10.7B hbars (approximately 20% of total supply), currently worth $5B as of September 16th, 2021, towards the development of the Hedera ecosystem.
Conclusion
The way Hedera works differs from blockchain in several ways and even offers up some vast improvements. Adding to that is its financial firepower and corporate gravitas. The fact that the network is closed source sometimes invites criticism over their governance. But there has been a steady stream of positive news for Hedera lately with some even calling it the next generation blockchain.
Endnote
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