Hedera’s hashgraph consensus is unique and is faster than other blockchain mechanisms

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Bitcoin and Crypto Market Watch Monday, December 27, 2021 - 19:16

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Ethereum is the market leader in the world of blockchain platforms. However, its congestion and fees have consistently been a challenge for users. There’s been a market need for a solution, and many alternatives have emerged such as Hedera. Hedera introduced its unique blockchain - a public ledger solution that relies on ‘hashgraph’ consensus. This is a faster and secure alternative solution to blockchain consensus mechanisms. In this platform, we delve deeper into the platform.

Hedera: an introduction

Dr. Leemon Baird, Hedera co-founder, and chief scientist invented the hashgraph distributed consensus algorithm, which underpins the Hedera public network. Because the hashgraph consensus algorithm is nearly perfect in terms of bandwidth efficiency, it can process hundreds of thousands of transactions per second in a single shard. On the Hedera network, 10,000 transactions can take place each second. Further, the transaction fees is as low as $0.0001. HBAR, Hedera's native cryptocurrency is currently ranked 35 among cryptocurrencies.

Hedera is backed by some of the world's largest corporations, and relies on a modified version of the proof-of-stake consensus algorithm that uses ‘approved nodes’ to verify transactions. This is a major incentive for businesses to use HBAR, since it speeds up transaction times, and lower fees. The transaction validators are compensated with the HBAR cryptocurrency.

India’s premier engineering institute IIT Madras joined Hedera’s governing council this year to drive R&D in blockchain use cases.

HBAR tokens serve three primary purposes:

1.Network Fuel

HBARs are used as "fuel" to pay for network services. They are also used to incentivize nodes and contribute to computing resources to the network. End-users must pay a certain fee to use the network.

2. Network Security

Hedera proceeds toward permissionless nodes. This allows HBARs to protect the network from cyberattacks through the network's forthcoming proof-of-stake, coin-weighted consensus mechanism.

3. Treasury Management

Around 46% of the network's 50 billion HBARs had been allocated, with the remaining 54% held in the Hedera Treasury when HBAR first came into existence.

HBAR: Short Term Technical Analysis

Despite the market crash, HBAR has had a relatively good month in December. While it broke down from its November descending wedge to the downside, it quickly regained in value currently sits on the .236 retracement support of its December fibonacci pull at $0.312.

Hedera Chart

Source: TradingView, Binance

HBAR has already rejected from its month high of $0.3435, but if this support level holds, it can reclaim this high and push towards key resistances at $0.37 and $0.42. But a drop down to the golden pocket at $0.26 before a bounce would indicate a healthy move and give HBAR plenty of fuel to push ahead, making its movements more bullish for the longer term.

Future Potential

As blockchain technology improves and more traders dive into the crypto-verse, investors are actively looking for reliable alternative blockchain platforms. Hedera with its native cryptocurrency HBAR provides investors a faster and more secure platform to carry on their crypto journey.

Disclaimer:This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

 

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