What is Hedera (HBAR)? | Learn

A Unique Network

You might be curious about what exactly Hedara is and why it and its native asset have caught the attention of many.

In this article we will give an overview of Hedera, its native asset, HBAR, and highlight the potential advantages it offers.

What is Hedera?

Hedera is a specific type of open source, proof of stake (PoS), public network that uses the asynchronous Byzantine Fault tolerance (aBFT) hashgraph consensus algorithm.

The network architecture is quite different from the Bitcoin and Ethereum blockchain.

Rather than using blockchain technology, Hedera employs hashgraph technology, which claims to be more secure, fair, and fast. While blockchains are generally thought of as expanding chains of blocks containing transactional information, hashgraphs are characterized by their acyclic graphs with no directed cycles.

How does its consensus protocol work?

Hedera's Hashgraph consensus works through a "gossip protocol." In this system, members randomly share information with each other, ensuring that new information spreads rapidly throughout the network.

This sharing of information is called a gossip sync, and each sync is marked with an "event." An event is a record that includes details like a timestamp and two identifying codes, known as parent hashes, which help trace the sequence of information exchanges.

For example, if two members, Jack and John, engage in a gossip sync, both create events containing codes related to the last information exchange they were part of. This process continues until all members have received the new information.

The protocol enables quick and efficient information dissemination, keeping all participants synchronized and maintaining the network's integrity.

What is HBAR?

HBAR is the native currency of the Hedera Hashgraph network. It serves as the fuel for the network, allowing users to conduct transactions and run applications. To engage in these activities, users must purchase HBAR. The maximum supply of HBAR is fixed at 50 billion coins.

Why do people like Hedera Hashgraph (HBAR)?

People have been showing interest in this asset because of its unique consensus mechanism. Hedera Hashgraph stands out for its ability to scale smoothly and its use of an eco-friendly proof of stake (PoS) approach. Also, the transactions are faster and cheaper compared to other blockchain transactions.

If you’re looking to buy and sell HBAR you can do it with the benefits of a tax-advantaged crypto IRA at iTrustCapital!

Create an account and log-in today!

DISCLAIMER

This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.

iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrust Capital is not associated with and has no direct relationship with HBAR. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.

Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.

Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.

iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and does not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.