Hedera crypto is a network where anyone can transact and deploy applications. But in this cryptocurrency network, a group of businesses controls the software. In this article, we research the basics of Hedera crypto for beginners.
A Beginner’s Guide to Hedera Crypto – 2023
Although it is structurally significantly different from the Bitcoin and Ethereum blockchains, Hedera is a decentralized distributed network that serves the same purposes. Compared to blockchain networks, it is based on more effective security and validation algorithms.
Instead of using blockchains, Hedera uses hashgraph technology to construct its distributed open ledger. Overall, hashgraph-based networking is a workable substitute for blockchains for building an open ledger and sustaining a cryptocurrency.
Who Is the Founder of Hedera Hashgraph?
Computer scientist Leemon Baird and technology executive Mance Harmon developed the Hedera Hashgraph. In 2015, Baird and Harmon founded Swirlds as a joint venture. To construct and run a live network, Hedera, utilizing its technology, Swirlds spun out an organization called Hedera, afterward renamed Hedera Hashgraph. In addition, the platform initially launched as a private network, intends to progressively permit additional entities to join the network before it is ultimately made public later.
How Does the Hedera Hashgraph Operate?
The most distinctive aspect of Hedera Hashgraph is its hashgraph-based data structure for grouping transactions, which is said to execute more transactions more efficiently than current blockchains. The Hashgraph is a patented method that was initially created for private use and in which all nodes are constantly exchanging information with one another.
Hashgraph Consensus Service
Hedera Hashgraph uses the Hashgraph consensus technique, which is supported by two different types of nodes, to ensure that all the computers in its distributed network concur on its transaction history. Mirror nodes communicate this data to other network participants, while consensus nodes decide on transaction ordering and history.
Hedera Governance
The Hedera Governing Council, which is in charge of managing the consensus nodes that decide transaction sequencing, oversees Hedera Hashgraph.
Since 2020, the council has had 39 members, including Google, IBM, and Boeing. The council’s responsibilities include as follows:
- Managing the software
- Making sure funds are allocated properly
- Voting on improvements
- Preserving the network’s legal standing in various jurisdictions.
The Hedera team plans to allow anybody who wants to manage nodes in the future, even though the Governing Council members now control the mainnet.
What is HBAR?
The Hedera network’s native cryptocurrency, HBAR, has a fixed supply of 50 billion HBARs. It serves as network fuel for in-app purchases, micropayments, and transaction fees. Due to Hedera being a proof-of-stake network, it is also utilized for network defense. At the time of writing, Hedera crypto is trading at $0.06505. HBAR token allocation is as shown in the image below:
Roadmap
Hedera’s current roadmap consists of four parts. Q4 2022, Q1 2023, Q2 2023, and Q3 2023 are these four parts. The platform has successfully completed its targets in Q4 2022 and achieved its first target in Q1 2023. More detailed information on the roadmap can be found below.
Q4 2022
- Developer Ecosystem ✓
SWIFT SDK
Support for the Swift programming language.
- Performance & Scale ✓
CHATTER PROTOCOL
The protocol improves gossip scalability by improving synchronization, re-establishment, negotiation, and handling of orphan events and tasks.
- HIPs & Features ✓
EXTEND SCHEDULED TRANSACTIONS
Enable support for CryptoApproveAllowance via scheduled transactions.
- HIPs & Features ✓
BLOCK EXPLORER
Provide a block explorer capability, similar to EIP-3091, which can be used by ETH tools and wallets to view transactions on HashScan.
Q1 2023
- HIPs & Features ✓
PAYER-SPONSORED ACCOUNT CREATION (HIP-542)
Supports auto-creation via HTS assets by charging the account creation fee to the payer of the triggering CryptoTransfer (HIP-542).
- Smart Contracts
SMART CONTRACT TRACEABILITY (HIP-260)
Improves the usability, audibility, and debuggability of smart contract transactions by providing traceability into smart contract internal calls and state changes (HIP-260).
- Mirror Node
MIRROR NODE SCALEABILITY
Enables Mirror Node to store increased transaction load while reducing the retrieval times.
Q2 2023
- Decentralization
ENABLE COMMUNITY NODES
Continue on Hedera’s path to decentralization through the introduction of a set of permissioned, community-run mainnet nodes.
- Smart Contracts
SMART CONTRACT USABILITY IMPROVEMENTS
Additional support for ECDSA keys and ETH addresses to reduce friction in using ETH tooling and wallets.
- HIPs & Features
EVM ARCHIVE NODE
Add support to the mirror node to query the state of a smart contract with initial support for eth_Call and eth_getGasEstimate.
- HIPs & Features
AIRDROP TOKEN ASSOCIATION
Allows a sender to sponsor and pay for air-drop to other accounts while ensuring spam protection and providing the recipient an option to accept or opt-out of such transfers.
- Decentralization
NETWORK MONITORING TOOLS
In preparation for community-operated nodes, creating tooling to support the operation, and monitoring of the community nodes.
- Decentralization
STAKING OPTIMIZATIONS
Enhancement to Hedera native staking functionality to support dynamic consensus weight.
- Smart Contracts
SMART CONTRACT SOLIDITY VERIFICATION
Allow dapp to upload the Solidity code to HashScan and receive a verification against the deployed bytecode, allowing the community to view the solidity of the deployed smart contract.
- HIPs & Features
ACCOUNT VIRTUAL ADDRESSES (HIP-631)
Create a new addressing mechanism for an account where an account can be addressed by a public ECDSA address in addition to existing alias and entity id while supporting multi-sig and key rotation capabilities (HIP-631).
- HIPs & Features
HEDERA ACCOUNT SERVICES CONTRACT (HIP-632)
Extend support for HIP-631, where an account may be addressed by one of many public addresses while providing support for ECRECOVER and equivalent for ECDSA and ED keys (HIP-632).
- HIPs & Features
METADATA FOR FUNGIBLE TOKENS (HIP-646)
Proposes and supports the implementation of Metadata for various fungible token types (HIP-646).
- Smart Contracts
RPC RELAY ENHANCEMENTS
Enhancement to RPC Relay capability to support Developer Mode and Event subscription.
- Smart Contracts
HTS & EVM EVENTS COMPATIBILITY
Enables HTS events to improve compatibility with EVM-based implementations of token patterns.
- HIPs & Features
SUPPORT FOR THEGRAPH
Provides open-source implementation and support for TheGraph on Hedera.
- Scalability
MERKLE DB IMPLEMENTATION
Provides Virtual Merkle support for entity storage and thereby increases the platform scale.
Q3 2023
- HIPs & Features
LONGER-TERM SCHEDULED TRANSACTIONS (HIP-423)
Extends the capability of scheduled transactions to support executing transactions at an arbitrary time in the future and allows more types of transactions to be scheduled (HIP-423).
- HIPs & Features
CONGESTION PRICING
Improve network security and mitigate congestion by dynamically adjusting transaction pricing when a certain transaction volume is breached.
- Smart Contracts
HTS PRECOMPILES ADDITIONS
Additional Precompile to support ApproveAll capability for HBAR and delegated transfer with fallback.
- Smart Contracts
LOCAL NODE DEVELOPMENT ENVIRONMENT
Extends the capability of the Local Node to improve localized development and testing of smart contracts.
- Decentralization
ENABLE COMMUNITY NODES
Extends community node implementation with support for improved onboarding, monitoring, and recovery.
Team
The current team of the platform is shown in the image above.
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