Hedera Hashgraph, or HBAR, was popularized as the blockchain killer. The reason is its unique approach towards developing a crypto ecosystem. It uses an open review consensus algorithm developed in 2016 by distinguished personalities having vast experience in the computer science domain. After working on various computer systems for over decades, it was conceptualized as a sustainable and enterprise-grade public network for the decentralized ecosystem that allows others to develop decentralized applications (DApps). Hedera Hashgraph addresses two primary shortages of a decentralized ecosystem in the current timeline, including slow performance and stability.
Funded by an ICO in 2018, it took about a year for the complete development of the HBAR mainnet. Subsequently, after its launch in September 2019, HBAR token started performing dual functions in this newly developed crypto ecosystem. On the one hand, where HBAR powers Hedera services such as smart contracts and regular transactions, it is used as a staking tool to maintain the security and integrity of this network.
Why is Hedera So Unique?
Wondering what’s so unique about HBAR? Well, as its name conveys Hashgraph, Hedera doesn’t rely on the conventional blockchain development methodology. Rather it is supported by an ultra-modern distributed ledger technology called Hashgraph. This allows its network to overcome the shortages of currently developed blockchain ecosystems with transactions getting validated in under 5 seconds with gas fees of just $0.00001. The developers of Hedera claim that it can complete a total of 10,000 transactions every second, which is astonishingly high compared to the Proof of Work-based blockchain networks. It offers four key features:
- Its token service can be used to configure and create NFT with just a few codes.
- The consensus service of Hedera adds a layer of trust for any application.
- Smart contract tool allows the development of efficient decentralized applications.
- Decentralized file storage, time-based expiry, and proof of deletion.
HBAR Price Analysis
HBAR has a tremendous growth projection in 2020 and 2021, and it delivered an overall return of 3500% since 2020 that includes a small price trend of 1280% in 2021. But since the November 2021 peak, Hedera has fallen over 55%. Combining these price trends, Hedera now feels trapped in a profit booking sentiment.
The strength index that highlights buyers’ sentiment over a while has fallen over to September 2020 levels despite the increase in circulating supply. Hedera now has a total circulating supply of 19.57 billion tokens which is roughly 39% of its total supply.