While much is written about blockchain ecosystems and how they can be used to achieve consensus across a variety of sources, alternatives to blockchain technology aren’t as widely known. One project seeking to redefine how consensus is achieved is Hedera; using their unique hashgraph consensus mechanism, Hedera is redefining how consensus algorithms can work.
Dedicated to building the world’s first mass-adopted decentralized public ledger, Hedera is the brainchild of Dr. Leemon Baird’s work from back in 2012. Far along on their journey, Hedera is creating an ecosystem that involves cryptocurrencies, smart contracts, file services, consensus services, and decentralized applications. How does it all fit together?
Hedera’s hashgraph consensus algorithm allows data to be communicated, verified, and stored on all computers (or nodes) on the network. Data goes into the ecosystem through a node and is verified against other bits of data using the hashgraph network – similar to how a blockchain works, but without the need to store the entire history of the network on every transaction. This results in a leaner, quicker, more adaptable consensus algorithm than traditional blockchains.
Hedera’s native cryptocurrency – HBAR (ℏ)
HBAR has two main functions: network fuel, and network protection. First, let’s discuss network fuel. Anyone developing in the Hedera network will use HBAR to pay for network services; this might include operating a smart contract, storing information, or moving money. HBARs are used to pay for the cost of completing any type of action on the network, much like putting gas in your car to fuel the engine.
For network protection, HBARs are staked within nodes to provide that node with voting privileges. The more HBAR is staked within a node, the more that node’s vote is worth. This is known as “weighted voting,” and is designed to keep out bad actors by making it more costly to introduce bad data and dispute good data. Taken together, these two functions of HBAR fuels the Hedera network and protects it from outside attacks or internal bad actors.
HBAR and Metal Pay
We were impressed with the unique solutions to common cryptographic problems that the team at Hedera has invented. Anyone willing to look outside the box always catches our attention, and we’re excited to see the progress that Hedera will make in the coming years. Adding HBAR to our Marketplace gives Metal Pay users easy access to this interesting cryptocurrency that approaches consensus algorithms from a different perspective.
By listing HBAR on Metal Pay, Hedera gains another fiat on-ramp to their cryptocurrency. Now, people can sign-up for a Metal Pay account in less than 10 clicks, buy and sell over 40 cryptocurrencies directly from your FDIC-insured cash balance in our partner bank, and start buying HBAR with US Dollars immediately. Metal Pay allows users to buy, send, send, and receive cryptocurrency all from their phone.
Still wondering what HBAR is or what it can do? Be on the lookout for more content about HBAR in the Discover section of the Metal Pay app, as well as on our primary social media accounts: Twitter | Instagram | Facebook.
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