HABR is a utility coin that was issued by the Hedera Hashgraph platform announced in March 2018. The public network is built on Hashgraph, which is a kind of distributed ledger technology (DLT), developed by the Texas-based software company Swirlds. The company had previously deployed private versions of the blockchain with several huge enterprises.
Being a fast and secure blockchain alternative, the project immediately attracted the attention of the crypto community. Trying to create a new commerce network, the platform uses a patented codebase in an open network based on its hashgraph consensus technology. Developers are free to create their applications on top of networking without a license. So the company is simultaneously transparent and protected with a patent that guards the company against competitors. A co-founder of the project Mance Harmon named such a situation “transparency with stability.” The patent doesn’t let other developers copy the codebase to create competing platforms.
It’s also worth noting scalability and efficiency of the mechanism in the core of the technology as the platform addresses the most acute problems of the blockchain. At this, the work of a complicated system doesn’t take many computational resources.
Hedera Hashgraph was founded by 39 reputable organizations including banks, healthcare, legal, and media companies, and Swirlds is only one of them. The participation of these companies in the project is equal to be on par with one another. Each of them owns only 2.6% of the startup only. The governing body regulates financial issues and changes in the codebase. It should also help the company make strategic decisions. A similar governing structure was used when National BankAmericard was created in 1968. This brand is known as Visa now.
When the company was launched, it promised it would never fork and will always be one platform with one currency. In the opinion of Hedera’s founders, the forks create obstacles on the way of mainstream market adoption, cause confusion, uncertainty, and damage the network effect of the associated currencies.
Hedera Hashgraph platform and technologies
The core of the project is an absolutely new technology, which was developed by the team for the industry clients. Hedera Hashgraph presents a proof-of-stake public network that employs a new form of distributed consensus. There is an open-source version of the project available for all.
The engine can process up to 10,000 transactions per second. The platform working with digital assets offers its cryptocurrency HBAR, a file storage service, and smart contracts. Hedera works over integrations with third parties supporting the use of its cryptocurrency HBAR and the network such as custody services, exchange services, and others.
Distributed ledger technology presents a network of computers communicating with each other in order to reach a consensus. Hedera Hashgraph rejects blockchain and uses DAG technology, which stands for a Directed Acyclic Graph using the consensus algorithm including Virtual Voting and a Gossip to Gossip protocol.
Hedera Hashgraph employs a different scheme opposing the structure employed by Bitcoin software that is built as a string of transactions. According to Hedera’s structure, the transactions are processed in parallel, not linearly, and this explains why the speed of processing is so high.
Mirror Node software developed by the Hedera team made storage of public ledger data cost-efficient and reduced the consumption of resources to a minimum. After the mainnet was launched in September 2019, any member of the community is able to deploy dApps on its basis.
The Hashgraph protocol features a guaranteed Byzantine fault tolerance turning it into fairer and quicker consensus in comparison with other consensus mechanisms. It is also more secure as aBFT (asynchronous Byzantine Fault Tolerance) protects the company against DDoS attacks and malware. Also, Hedera verifies the identity of its users through KYC/AML authentication to safeguard the network.
Hedera issued its own token named HBAR, which is a utility token used for powering the Hedera public network, just in the same way that the token powers dApps. It is used to build P2P business models and to protect the network from attacks. The members of the ecosystem pay HBAR for computational power that is needed for running smart contracts. Tokens are paid for transactions and actually serve as gas on the Ethereum platform.
It’s possible to store HBAR in a browser wallet MyHbarWallet, Hbar paper wallet, desktop and mobile Atomic Wallet, mobile wallet BRD, browser wallet Hashing Systems, custodial wallet Kingdom Trust, and some others. The full list of HBAR wallets can be found on the official Hashgraph Wallet page. The token is available for purchase on such cryptocurrency exchanges as Binance, Bittrex, and OKEx.
Hedera’s IEO and other financial details
As it has been said above, the project brought much excitement to the crypto community and this contributed to the success of its fundraising campaigns. The platform had several funding rounds as it developed.
On March 13, 2018, the company raised 18 million USD. The investors included such companies as Struck Capital Crypto, Kosmos Capital, FirstMile Ventures, Digital Currency Group, and DHVC.
In August 2018, the company managed to raise 100 million USD more during IEO and announced a valuation of 6 billion USD. The funding was used to finish the development and launch of the startup network. It should be noted that Hedera employees contributed approximately 10% of the total amount. Blocktower’s Ari Paul also participated in the funding round. The funds were spent on the improvement of Hedera’s public ledger. The company is trying to address the problems in the market that prevent the mainstream adoption of public ledger technology.
Hedera Hashgraph team
Mance Harmon, CEO and co-founder of Hedera Hashgraph, started working with Leemon Baird, the second co-founder of the platform in a small company that developed machine learning algorithms for the US Air Force. Harmon was involved in a US government software program for missile-defense systems and had huge experience in the sphere before he created his cybersecurity startups. In 2015, they both became co-founders of Swirlds, the company that designed private blockchains for big enterprises. At this period, the work of Hedera Hashgraph also started. The algorithm itself was invented by Leemon Baird.