Are you seeking a cryptocurrency that offers speed, security, and scalability for various real-world applications? Look no further than HBAR, the native cryptocurrency of the Hedera Hashgraph network. This article will guide you through HBAR’s unique attributes, the technology behind it, and its practical uses in smart contracts, non-fungible tokens, and supply chain integration. If you’re wondering “What is HBAR?”, continue reading to discover its potential and benefits.
Key Takeaways
What is HBAR?
HBAR, the native cryptocurrency of the Hedera Hashgraph network, is designed to enable secure, rapid transactions and drive the services of the Hedera network. HBAR functions as a driving force, powering Hedera services and maintaining the network’s security. Some of HBAR’s distinguishing characteristics include its support for three services - EVM-compatible smart contracts, token service, and consensus service, as well as its fast and secure consensus algorithm.
HBAR’s dual role in maintaining the security of the Hedera network involves the use of a proof-of-stake mechanism to protect the network from potential cyberattacks and paying for hedera network services, such as application transaction fees. As a result, the hedera price plays a crucial role in these processes.
The Native Token of Hedera Network
HBAR, the native cryptocurrency of the Hedera network, serves as the fuel for the network and its applications. It is used to:
- Pay for network services and fees
- Provide a layer of protection against malicious attacks
- Facilitate transactions on the Hedera network
- Prevent the consolidation of voting power for network transactions.
Its function is paramount in safeguarding the public network while promoting efficiency, security, and minimizing network fees.
Using HBAR for Transaction Fees and Network Services
HBAR is used as a means to cover transaction costs in the Hedera network, thereby guaranteeing continuous operation and sustainability of the network. When users execute operations such as transactions or executing smart contracts on the network, they are required to pay fees in HBAR tokens.
HBAR is also used for network services such as transferring HBAR, minting tokens, calling smart contracts, and logging data.
HBAR's Unique Attributes
HBAR is known for its rapidity, security features, and scalability. It offers significant advantages in terms of speed due to its utilization of hashgraph technology, which allows for faster transaction processing compared to traditional blockchain systems. HBAR has implemented a range of measures to ensure the highest levels of security for transactions and data, such as staking HBAR tokens for consensus, achieving fast finality of transactions, and employing secure storage with cryptography.
HBAR exhibits scalability through its high throughput, low transaction fees, flexibility, and sharding mechanism.
The Technology Behind HBAR: Hashgraph Consensus
Hashgraph consensus is the technology underpinning HBAR, leveraging a gossip protocol data structure and attaining Asynchronous Byzantine Fault Tolerance for a dependable and efficient network. The Hedera Hashgraph system utilizes a custom-built consensus mechanism called hashgraph, which employs a directed acyclic graph (DAG) data structure and gossip protocol to determine the validity of transactions and the order in which they are added to the ledger.
The gossip protocol in the Hashgraph consensus serves to enable communication between network nodes, allowing nodes to share information and eventually reach consensus on the order and validity of transactions.
A Gossip Protocol Data Structure
The gossip protocol in the Hedera network facilitates communication and information sharing between nodes. Each node communicates all known information to randomly chosen nodes through the gossip protocol, allowing for the dissemination of information and aiding in the consensus on data within the network.
The gossip protocol in Hedera incorporates consensus timestamps and random communication between nodes, further boosting the effectiveness of information dissemination.
Achieving Asynchronous Byzantine Fault Tolerance
Asynchronous Byzantine Fault Tolerance (ABFT) is pivotal in safeguarding distributed ledger technologies. ABFT guarantees the security, dependability, and trustworthiness of the system by providing resistance against Byzantine faults. It allows the system to persistently operate correctly even in the presence of malicious actors or faulty components.
ABFT protocols enable consensus among distributed nodes, making sure that all nodes agree on the state of the ledger and preventing unauthorized modifications or tampering.
The Hedera Ecosystem: Nodes and Network Participants
The Hedera ecosystem consists of three main components:
- Consensus nodes: These nodes play a key role in reaching an agreement on transactions and events within the Hedera network.
- Mirror nodes: These nodes store a complete record of all transactions from the Hedera Mainnet, providing consumers and developers with access to and exploration of transaction data on the network.
- Governing council: The governing council is comprised of organizations such as IIT Madras, Boeing, Dell, IBM, and University College London, as well as other members such as Google. The council plays a crucial role in sustaining the network’s stability and direction.
Consensus Nodes: The Core of Transaction Verification
Consensus nodes in the Hedera ecosystem utilize the Hashgraph consensus algorithm to verify transactions. This algorithm employs a gossip protocol to disseminate transactions and votes among the nodes. Through virtual voting and the consensus of the majority of nodes, agreement is reached on the order and validity of transactions, thereby ensuring the fairness and integrity of the network.
Mirror Nodes: Extending Network Capabilities
Mirror nodes in the Hedera ecosystem provide the following features:
- Preserve the complete history of all transactions from the Hedera Mainnet, making them accessible to consumers and developers
- Offer an accounts API that facilitates the retrieval of information associated with users’ accounts on the network
- Contribute to the decentralization of the network by allowing anyone to operate them.
The Governing Council: Steering the Hedera Ship
The governing council bears the responsibility of guiding the growth and development of the Hedera network. Members of the Hedera Governing Council serve for a maximum of three years, with the possibility of two consecutive terms.
The current members of the Hedera Governing Council are Brian Jeffords, Scott Thiel, Pradeep Iyer, Monique Morrow, and COFRA.
HBAR's Financial Footprint: Market Dynamics and Trading
HBAR’s financial footprint encompasses its market cap, trading volume, and price history, offering insights into its performance and potential for growth. Here are some key financial details about HBAR:
- Market capitalization
- Circulating supply: over 42.23B HBAR
- Trading volume in the last 24 hours: $229.73M
- Recent change in trading volume: -13.44% increase from one day ago
These figures indicate a recent rise in market activity for HBAR.
HBAR has experienced a decrease of 4.90% over the last 7 days.
Understanding Market Cap and Circulating Supply
Market capitalization and circulating supply are key indicators that help determine HBAR’s position in the cryptocurrency market. The market cap of a cryptocurrency is calculated by multiplying the current market price of a coin by its available supply, while the circulating supply of a cryptocurrency is established by the total number of tokens or coins that are accessible to the public and actively traded in the market.
HBAR has a market capitalization of over $5.90B and a circulating supply of over 50.00B HBAR.
Trading Volume and Liquidity Insights
Trading volume and liquidity provide insights into HBAR’s market activity and demand. High trading volume indicates increased market interest in HBAR, with more buyers and sellers actively trading the cryptocurrency, which leads to higher liquidity.
The average daily trading volume for HBAR is approximately $78 million.
Price History: From Highest to Current Price
HBAR’s price history offers a glimpse into its past performance and potential future trends. The peak price of HBAR was $0.569229, attained on Sep 15, 2021. The current market price of HBAR can be located on CoinMarketCap.
To access a comprehensive overview of the price history of HBAR, please refer to the CoinMarketCap website.
Practical Uses of HBAR in Real-World Applications
HBAR finds an array of practical applications in the real world, including smart contracts, non-fungible tokens, and integration into supply chains. HBAR smart contracts can be used to optimize digital marketing campaigns, improve customer experiences, and enable secure and transparent transactions.
The HBAR Foundation, which promotes the development of the Hedera Network, has partnered with MetaVRse to explore the potential of HBAR in the metaverse. HBAR is integral to supply chain and data integrity solutions, providing transparency, data integrity, and end-to-end visibility.
Smart Contracts and DApps
HBAR allows for the establishment and implementation of smart contracts and decentralized applications on the Hedera network. Smart contracts are used to automatically execute the logic of these applications, thus eliminating the need for a centralized intermediary. This allows users to securely complete transactions, verify claims, and collaborate without relying on a centralized authority.
Non-Fungible Tokens (NFTs) and Digital Assets
HBAR supports the creation and management of non-fungible tokens and digital assets. Non-Fungible Tokens (NFTs) are digital assets that are unique and irreplaceable, commonly used to represent digital items such as artwork, music, and gaming assets.
Hedera’s partnership with MetaVRse, a web-based 3D platform, enables the creation and management of NFTs and digital assets on the Hedera network.
Integration in Supply Chain and Data Integrity Solutions
HBAR can be incorporated into supply chain and data integrity solutions to enhance transparency and security. HBAR offers:
- End-to-end visibility of the supply chain, enabling organizations to track and verify the movement of goods and information
- Prevention of fraud
- Ensuring compliance
- Building trust among stakeholders
Additionally, HBAR’s distributed ledger technology ensures the immutability and security of data, further enhancing transparency and data integrity in supply chain solutions.
How to Acquire and Store HBAR
The acquisition and storage of HBAR entail buying the tokens on a variety of exchanges and safely storing them in compatible wallets. HBAR can be acquired through several cryptocurrency exchanges, including HitBTC, FMFW.io, and Gate.io. It can be securely stored in wallets that are compatible with the Hedera network, such as Ledger Nano X, Exodus Hedera Hashgraph Wallet, and MyHbarWallet.
Where to Buy Hedera HBAR
HBAR tokens can be obtained via a range of cryptocurrency exchanges, like Bybit. To acquire HBAR on FMFW.io, you may utilize the service provider Mercuryo and select a suitable payment method.
On Gate.io, you can refer to the instructions provided on their website: https://www.gate.io/how-to-buy/hbarx-hbarx.
Secure Storage Options for HBAR Coins
Options for secure storage of HBAR coins encompass:
- Ledger Nano X + HashPack
- Citadel Wallet
- MyHbarWallet
- HbarPrice Wallet
- Composer Wallet
These wallets are the most secure for storing HBAR coins and are highly recommended.
Ledger Live, Atomic Wallet, and HashPack are some of the software wallets compatible with Hedera HBAR.
Summary
In conclusion, HBAR is a promising cryptocurrency with various real-world applications, powered by the innovative Hedera Hashgraph network. Its unique attributes, such as speed, security, and scalability, make it an attractive option for developers, businesses, and investors alike. With its growing ecosystem of nodes and network participants and its increasing market footprint, HBAR is well-positioned for future growth and adoption.
Frequently Asked Questions
What makes HBAR unique compared to other cryptocurrencies?
HBAR stands out from other cryptos for its fast transaction speeds, secure network, and scalability. Moreover, it offers a range of services, like smart contracts, token service and consensus service.
How does the Hashgraph consensus technology work?
Hashgraph consensus utilizes a gossip protocol data structure to ensure secure, efficient, and decentralized transactions, achieving asynchronous Byzantine Fault Tolerance.
What are some practical uses of HBAR in real-world applications?
HBAR can be used for smart contracts, non-fungible tokens, and supply chain integration, providing practical applications in various industries.
How can I acquire and securely store HBAR tokens?
You can acquire HBAR tokens through various cryptocurrency exchanges and securely store them in compatible hardware or software wallets.
What is the current market capitalization and circulating supply of HBAR?
HBAR currently has a market capitalization of over $5.90B and a circulating supply of 42.23B HBAR.
