Hedera (HBAR) is a unique cryptocurrency that powers an innovative distributed ledger network called Hedera Hashgraph. Unlike typical blockchains, Hedera uses hashgraph consensus which provides major improvements to scalability, security, and environmental sustainability.
So what exactly is Hedera coin and how does it work under the hood? Let’s dive into the basics.
What is the purpose of Hedera (HBAR) coin?
HBAR coins serve several key purposes within the Hedera network. Firstly, they are used to pay transaction fees when interacting with dapps or making payments on the network. This includes minting/transferring tokens, executing smart contracts, and storing data in the Hedera decentralized file system.
HBARs also act as governance tokens. Users can stake their coins to participate in voting on network upgrades and policy decisions. Nodes that secure the network are also required to stake a minimum of 460 million HBARs.
Another major use case is providing liquidity. Like other cryptocurrencies, HBARs can be freely traded on exchanges against other coins. This facilitates broader adoption and use of the Hedera network.
How does Hedera (HBAR) crypto work?
Under the hood, Hedera employs something called hashgraph consensus which operates very differently than blockchains. Rather than linear chains of blocks, it uses an evolving graph structure where events are added simultaneously in each round.
Through a process called gossip about gossip, nodes communicate updates to verify the shared transaction history without centralized coordination. This makes Hedera vastly more scalable than legacy blockchains while maintaining security.
Transactions only require a simple majority consensus rather than demanding 100% agreement. They are timestamped with a precise ordering upon validation. This lightning fast finality allows for real-time applications like payments.
The entire supply of 50 billion HBAR tokens was premined at launch. Some were allocated to the founding company and early investors, while the majority are managed by an independent governing council consisting of major enterprises.
Does Hedera (HBAR) token have a future?
With its technological advantages and big name backers, many see a bright future for Hedera and HBAR coin. The network is already being used for real-world applications in supply chain, CBDC testing, and more.
As blockchain scalability limitations persist on platforms like Ethereum, more developers may choose to build on Hedera instead. The low and predictable transaction fees also give it an edge for micropayments and IoT machine-to-machine usage.
HBAR could thrive as a currency for powering decentralized economies on the network. Given its eco-friendly architecture, sustainability focused companies may prefer developing on Hedera as well.
Hedera aims to be the backbone infrastructure for all types of decentralized systems. As long as it continues delivering on that massive promise, HBAR tokens should remain highly relevant in the years to come.
When Hedera (HBAR) coin launched?
Hedera Hashgraph launched its mainnet and HBAR token in September 2019 after over a year of private beta testing. However, the company was founded all the way back in 2017 by Leemon Baird – the inventor of the hashgraph consensus algorithm.
From 2018 to 2019, Hedera conducted a lengthy fundraising process where it sold SAFT (Simple Agreement for Future Tokens) agreements to private investors. This helped fund the platform’s development pre-launch.
The total maximum supply of HBARs is fixed at 50 billion, with no new coins ever being created. Over the years since mainnet launch, Hedera has steadily grown its ecosystem of dapps, tools, and large enterprise partnerships.
Is Hedera (HBAR) crypto a scam?
No, Hedera Hashgraph is very unlikely to be a scam. The network is governed by a council of blue chip multinational corporations who have a vested interest in ensuring its legitimacy and success long term.
Some of the council members include Boeing, IBM, LG, and Deutsche Telekom – companies not likely to partner with or endorse a scam project. Hedera also publishes quarterly reports on development progress and finances.
Critics may argue the leadership and councils’ ties to traditional finance and tech make Hedera somewhat centralized. However, the network architecture does aim for maximized decentralization over time as nodes become more distributed.
Overall the project seems very well-funded with strong commercial backing. As long as governance remains distributed and transparent going forward, Hedera presents little risk of being an outright scam or rugpull.
Is it safe to invest in Hedera (HBAR) token?
Like any cryptocurrency, investing in HBAR carries risks. The market is highly volatile and past performance doesn’t guarantee future returns. Only invest what you can afford to lose.
That said, Hedera does appear to be a fairly safe crypto project in relative terms based on:
- Blue chip council and management with strong financial incentives
- Active development, regular audits, and transparent roadmap
- Real commercial use cases and large enterprise partnerships already
- Escalating adoption rates as the network scales
- Very low risk of a technical failure like a blockchain hack
Diversifying across uncorrelated assets is also wise. As long as you do proper research, only invest sums you won’t miss, and accept potential short term losses, HBAR could make a solid long term crypto holding. Just make sure to keep up with the latest news using EXEcrypto!
Is Hedera (HBAR) coin worth it? HBAR Price 2023
When it comes to investment potential and earning money from trading/holding, Hedera coin does seem reasonably worth it based on past and predicted 2023 HBAR price action:
- Launched at $0.10 per coin in late 2019, HBAR rose to a high of $0.50 by late 2021 – a 5x return in just 2 years.
- Despite the 2022 crypto bear market, HBAR held strong above $0.05 and maintained its spot as a top 30 coin.
- Even conservative 10-20% annual price increases would yield nice profit over the long run holding this promising project.
Naturally past performance isn’t a promise of the future. But given Hedera’s fundamentals, adoption trajectory, and ecosystem development – HBAR does appear attractively valued and worth considering for investment or usage today.
Where to buy Hedera (HBAR) crypto?
Some popular centralized and decentralized exchanges where you can purchase HBAR tokens with fiat money or other cryptocurrencies include:
- Binance (one of the largest crypto exchanges)
- KuCoin
- Coinbase (user friendly for beginners in most countries)
- Crypto.com
- Bittrex
- Gate.io
- Swirlds Hashlets node network
D Y O R before signing up with any trading platform. Always ensure they are properly registered and following local regulations. For decentralization purists, using Hashlets or decentralized exchanges like SushiSwap offer permissionless access. Hardware wallets also help safely store HBAR long term.
How to sell Hedera (HBAR) token?
Selling HBAR is very similar to the buying process, except in reverse:
- Deposit your HBAR coins from your personal wallet into the exchange you registered with like Binance, Crypto.com, etc.
- In exchange spot trading section, select the HBAR/FIAT or HBAR/Crypto pair you want such as HBAR/USDT.
- Input your sell order details like price and amount of HBAR to sell. Make sure to account for network transaction fees.
- Once your order matches a buyer, your HBAR tokens will be instantly sold at the market price.
- Withdraw funds from exchange into your personal bank account or back to your main wallet from where you can spend/transfer to others.
Always double check address entries to avoid potential losses from accidental sends. Most large exchanges also offer OTC desks for large block trades.
How to stake Hedera (HBAR) coin?
On Hedera’s hashgraph network, stakeholders are able to run validating nodes and earn HBAR as a reward for providing decentralization and security to the network.
The minimum staking requirement is about 460 million HBAR to run a validator node controlled by their private key. But smaller stakeholders can also participate via proxy staking, delegating their funds to another node instead.
Both options help protect the network from bad actors while earning stakers inflationary HBAR rewards over time. Staking can be done through centralized services, wallets integrated with Hedera, or directly on the Swirlds Hashlets node network.
Do thorough research on minimums, slashing conditions, average returns and other factors before choosing how and where to stake your HBAR holdings long term.
How to mine Hedera (HBAR) crypto?
Unlike proof-of-work blockchains like Bitcoin, Hedera Hashgraph uses a hashgraph consensus algorithm that is not mined. There is no competitive “mining” process that requires powerful ASIC devices to solve cryptographic puzzles and continuously validate new transactions.