💡 What is Hedera (HBAR)?
Hedera is a Distributed Ledger Technology (DLT) designed as a faster, more scalable alternative to traditional blockchains. It leverages Hashgraph consensus, a proprietary algorithm known for high throughput (thousands of transactions per second) and low fees. Unlike linear blockchains, Hedera uses a Directed Acyclic Graph (DAG) structure for parallel transaction processing.
Key features:
- Enterprise-Grade Governance: Managed by the Hedera Governing Council (Google, IBM, Boeing, etc.).
- Eco-Friendly: Hashgraph is energy-efficient compared to Proof-of-Work blockchains.
- Multi-Service Platform: Supports smart contracts, tokenization, and file storage.
👉 Discover how Hedera compares to Ethereum
Origins of Hedera
Founded in 2018 by Dr. Leemon Baird (inventor of Hashgraph) and Mance Harmon, Hedera launched publicly in 2019. Its mission: to solve blockchain’s "trilemma" of scalability, security, and decentralization through innovative DAG architecture.
🔧 How Does Hedera Work?
Hashgraph Consensus
Hedera’s asynchronous Byzantine Fault Tolerance (aBFT) enables rapid, secure transactions without miners. Nodes use a "Gossip about Gossip" protocol to share data and achieve consensus in seconds.
Directed Acyclic Graph (DAG)
Transactions are processed in parallel via a DAG, eliminating bottlenecks of linear blockchains. This allows for:
- 10,000+ TPS (vs. Ethereum’s ~30 TPS).
- Sub-cent fees for microtransactions.
Governing Council
39 global corporations oversee Hedera’s development, ensuring stability but raising centralization concerns. Members rotate every 3 years to prevent power consolidation.
🚀 Use Cases
Hedera excels in:
- Asset Tokenization: Fractional ownership of real estate, stocks, etc.
- DeFi: Fast, cheap transactions for decentralized apps.
- Supply Chain: Transparent tracking for global logistics.
- Digital Identity: Secure, verifiable credentials.
👉 Explore Hedera-powered dApps
📈 Buying and Storing HBAR
How to Buy HBAR
- Choose an Exchange: Bitvavo, Bitpanda, or Coinbase.
- Register & Verify: Complete KYC steps.
- Deposit Funds: Via bank transfer or card.
- Purchase HBAR: Market/limit orders.
Best Wallets
- Hardware: Ledger Nano S Plus (most secure).
- Software: HashPack (user-friendly).
HBAR Staking
Delegating HBAR to nodes earns ~6% APY. Tokens remain liquid—no lock-up periods.
⚖️ Pros and Cons
| Pros | Cons |
|----------|----------|
| ✅ 10,000+ TPS | ❌ Centralized governance |
| ✅ Near-zero fees | ❌ Limited open-source transparency |
| ✅ Enterprise adoption | ❌ Competes with Ethereum, Solana |
❓ FAQ
Q: Is Hedera a blockchain?
A: No—it’s a Hashgraph-based DLT with DAG architecture.
Q: What’s HBAR’s max supply?
A: 50 billion (fixed).
Q: Can Hedera replace Ethereum?
A: Potentially in enterprise use cases due to speed/cost advantages.
🔗 Resources
Hedera merges enterprise reliability with crypto innovation, making HBAR a long-term contender in the DLT space.