The Hedera cryptocurrency is a new form of a decentralized network that mainly focuses on decentralizing operations and governance. Most of the major tech firms around the globe are members of this governing council, and they own it in a way.
In the governing council, you’ll come across big names such as IBM and Google. Hedera usually focuses on solutions meant for the enterprise-level while offering governance that is mostly decentralized and scalable.
The decentralized network is different compared to what we’ve seen in the traditional blockchains. In the Hedera network, there are permission nodes, and they’re run by members of the governing council. Also, they lead the direction of the network. To become a member of the governing council, you’ll need to pass some requirements.
What is the Hedera Cryptocurrency?
This is a decentralized network that is meant for building decentralized services and applications. It’s a ledger that is publicly distributed but different from other blockchains such as Ethereum and Bitcoin. The first generation of blockchain networks mainly comprises PoW.
Hedera makes use of the PoS (Proof of Stake) protocols. It is the major difference that has made it possible to transact faster in the Hedera network. The Hashgraph consensus is the decentralized network’s backbone. The team behind the project has been claiming this network has the best security available, and the transactions are handled at blazing speed.
In one second, the network can handle more than 10,000 transactions compared to the Bitcoin network that handles three per second. The average transaction fee is usually $0.0001 in the blockchain, and finality will take place in less than five seconds. Each of these metrics showcases the network is a suitable alternative to traditional blockchains.
How Does Hedera Work?
Dr. Leemon Baird is the chief scientist and co-founder of the Hedera Hashgraph, which serves as the backbone of this cryptocurrency.
The nodes responsible for running the blockchain usually come to a consensus, and they can add a transaction to the ledger. As a result, the transactions are processed faster. The model used helps to solve each problem that we notice in common blockchains. In the blockchain, each new block being added to the chain will lead to the creation of an ever-growing chain, and it may become slow eventually.
Forks usually happen after creating two blocks simultaneously, and the community can only decide for one of the blocks. In Hashgraph, each container of transactions is added to the ledger, and they will be woven together.
The Use Cases of Hedera Hashgraph
There are different uses for the PoS distributed ledgers, such as the Hedera Hashgraph. The main focus is on enterprise solutions; however, the Hedera Hashgraph can help solve many more issues, such as offering a reliable base for the developers making dApps. Some of these use-cases include:
Identity
With Hedera, you’ll have access to important features and tools meant for managing and storing identity in an environment that is decentralized. The management of credentials is done securely and easily.
The services fundamentals will follow an identifier that is decentralized, and the credential standards are verifiable under the W3C development. The systems will offer control over personal data to the users.
Management of identity and credentials in a network that is decentralized such as this one will make it possible to use it in IoT and other forms of technology efficiently.
Credential management on this network will come in handy for different sectors, including information technology, education, and healthcare.
Fraud Mitigation
The prevention of fraud is somewhat impossible for a system that is centralized. The Hedera Hashgraph ensures the logging is verifiable for business transactions next to a decentralized identifier, making it difficult to engage in fraud.
The DID standard makes it impossible to misuse the system. The transaction speed and real-time management make it possible for public ledges to inform the parties, and fraud can be prevented in the process.
In simpler terms, when wrong actions are detected, they can’t grow fast, and the stakeholders can prevent them first.
Healthcare
Hedera Hashgraph is an essential technology for managing and storing healthcare data. It normally offers services for firms in this section that usually store data from patients while ensuring their privacy is secure and safe. The large healthcare firms around the globe are using Hedera.
Payments
The token service by Hedera makes it possible for firms to access payment services in an environment that is fast and secure. The services offer the ability to issue tokens, and they can be received on the Hashgraph network.
Transactions are settled in real-time, which means different cryptocurrencies on the network are suitable alternatives for payment use and commercial cases. Besides, the fee is small since the PoS system is in use. The fee is less than $1. The network also complies with the regulatory frameworks, and systems such as KYC are deployed for token issuance.
Final Thoughts
The Hedera cryptocurrency is mainly offering unique experiences when it comes to decentralization. The main focus is on real-world issues while also partnering with large companies to connect both worlds. The decentralization mechanism is unique, and the governing council makes the network decentralized, and it partners with effective companies in different industries. The consensus mechanism is fast and scalable, therefore making it a suitable alternative to the traditional blockchains. It is the first choice for different companies and smart contract developers that require a fast, secure, and reliable network that offers its services.
