What is Hedera Hashgraph (HBAR)?

Hedera Hashgraph Development Services is a perfect example of a decentralized public network that would efficiently provide exclusivity to its digital users. Be it an enterprise, startup, consumer, or creator; Hedera ensures to go beyond blockchain and offers fast, secure, and fair applications to its developers.

Hedera enables its users to perform the following activities-

• Creation of scalable and publicly verifiable timestamps.
• Assets can be tracked on a supply chain.
• Transfer of digital assets can be logged.
• Music streams can be counted for digital rights.
• File service enables its users to sign, verify, create and manage files with assured visibility.

The distinguishing features of Hedera include its proof of stake public network, hashgraph consensus, the highest level of security (ABFT), the breakneck speed of transaction, and minimum bandwidth consumption.

What is HBAR crypto?

Hedera’s energy-efficient and native cryptocurrency is known as HBAR. It is primarily used to decentralize applications of the power structures and provide protection to the network against malicious actors. Many other uses and advantages are extensively stated in its White Paper.

HBARs are being used to pay for network services, including the transfer of HBAR, fungible and non-fungible token management, data logging, etc.

The chances of a bad actor affecting the consensus maliciously are significantly reduced due to weighted voting with HBARs, as this would require an owner of over one-third of the total supply of HBAR by the network.

HBAR Token Features

Like all tokens, HBAR has very clear functions, among which we find:

• Payment of commissions within the network.

The HBAR token serves as “fuel” to pay for network services and incentivize nodes to contribute computing resources to the network. Commissions on Hedera Hashgraph are around $0,00001 per transaction, although costs can be a bit higher depending on the smart contracts involved in the operation.

• Maintain network security.

As Hedera moves towards permissionless nodes (decentralization), HBAR tokens will take a more important place in protecting the network against cyber attacks.

Reward payments for the work of nodes within the network. These payments are currently controlled by Hedera. They are used for node reward payments to node hosts and proxy reward payments staking to HBAR owners.

A curious point in the payment of commissions within Hedera Hashgraph is that it is divided into four parts:

• Node commission.

Every time a user or an application wishes to carry out a transaction on the network, it must send the transaction to a node, which will send the transaction to the network. By doing so, that node will spend resources and energy (albeit a small amount) and for those resources, this node will receive a small commission for its work. In this way, nodes are incentivized to take on this critical role. Node fees are paid from the end user's account directly to the account associated with the node sending the user's transaction to the network.

• Network commission.

Once a transaction is sent to the network, it is communicated to nodes that validate digital signatures, further communicate the transaction to other nodes and temporarily store it in their memory while the network reaches consensus. Users pay a network fee that compensates all participating nodes for calculating the consensus on the user's transaction. Computing resources consumed by this process may vary depending on the size of the transaction file and the number of digital signatures. Users pay Network Fees into an account controlled by Hedera that collects all Network Fees and Service Fees

• Service commission.

Service fees are paid by an end-user to compensate the network for services associated with the transaction (for example, a cryptocurrency transfer, smart contract processing, file storage, or message ordering).

In the case of a smart contract transaction, the service fee will be based on the processing power required by the network nodes to perform the calculation required by the smart contract. Service fees are paid by users to an account controlled by Hedera which collects all Network Fees and Service Fees.

Conclusion

Hedera Hashgraph is often referred to as a ‘third generation’ DLT (Distributed Ledger Technology) network, building on the achievements of earlier generation networks such as Bitcoin and Ethereum. The enterprise-grade technology and governance provided by the hashgraph and Hedera Governing Council are proving popular with projects of all sizes and Hedera is living up to its tagline ‘The Trust Layer of the Internet.

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