Blockchain has evolved from the exchange of cryptocurrencies to various applications in public and private sectors. It has gained popularity among big companies and developers introducing new decentralised solutions that are transforming the traditional systems.
Hedera is a Proof-of-Stake (PoS) smart contract platform created for cryptocurrency transactions and decentralised applications. Hedera stands out with its unique solutions from consensus mechanisms to innovative design. Hedera has been positioning itself as an alternative to Ethereum and other well-known networks. The foundation of Hedera is built on Hashgraph, an independent, quicker, low-latency, and more secure blockchain alternative.
With this, users don’t have to worry about fluctuating gas prices because Hedera sets affordable rates. According to a 2021 study by University College London, Hedera consumes the least amount of energy of any public blockchain.
HBAR, Hedera’s native token, has recently earned significant attention among traders, investors and developers. The HBAR token plays a vital role in the ecosystem. It is used for transaction fees, staking, and governance.
This article explains the basics of Hedera, its features, working and potential of HBAR coin as an investment opportunity.
What is Hedera Hashgraph?
Hedera Hashgraph is a decentralised public network that ensures easy creation and operation of decentralised applications (dApps). The platform operates a proof-of-stake smart contract created for cryptocurrency transactions without compromising on high performance and fast transaction speed.
The platform can deploy various characteristics through its Hashgraph- a unique distributed ledger technology that enables enhanced security, efficiency and user experience.
Hedera aims to create a decentralised ecosystem that offers trust, secure and quick transactions for individuals and enterprises. The platform supports use cases such as:
- Cryptocurrency Payments: Hedera facilitates instant and low-cost transactions.
- Smart Contracts: The platform provides innovative tools for deploying and applying decentralised applications.
- Tokenisation: It allows the creation and management of fungible and non-fungible tokens (NFTs).
Hedera’s Hashgraph Consensus
An alternative to blockchain is hashgraph. It encrypts and saves data like a blockchain. New transactions or data are added and hashed. While a blockchain is a ledger made up of data blocks. To generate the next block, each block uses its data to link to the preceding block, which is then validated by a network of validators.
A chain is produced by this procedure. But, hashgraph is not a single chain; the data is stored in an encrypted ledger. And all the users, not just the validators, participate in the validation process.
Features and Functionalities of Hedera
Hedera Hashgraph stands out in the blockchain ecosystem due to three important and distinct features. Three core services include:
EVM-Compatible Smart Contracts
The smart contracts on Hedera work with the Ethereum Virtual Machine (EVM), and that allows the developers to write and deploy Solidity, one of the most used languages in the blockchain ecosystem. This compatibility helps Ethereum developers to operate smoothly.
The design of Hedera is highly-scaled and its low fees feature is crucial in building large-scale DApps (dApps) systems.

Hedera Token Service (HTS)
Hedera Token Service makes it possible for users to create and control fungible tokens such as cryptocurrencies and non-fungible tokens (NFTs) without constructing complicated smart contracts. This functionality reduces the complexity involved in the tokenisation process while maintaining a safe and efficient transaction process.
Developers can define token properties such as supply and transferability and can be customised with specific permissions. It makes HTS suitable for financial, gaming, supply chain management and other industries.

Hedera Consensus Service (HCS)
Hedera Consensus Service allows a decentralised system for application messages that acts as a trust layer for any application which needs authentic timestamps and ordering of events. Supply chain management, decentralised security, identity, and communication systems are more reliable because of this service since it allows applications to add records on the Hedera ledger.
Moreover, the possibility of getting verifiable time stamps and fair ordering makes Hedera more advanced than usual blockchains.

Hedera: Governance Model
The network is managed by the Hedera Council, which consists of a maximum of 39 recognised organisations globally such as Google, IBM, Boeing, Deutsche Telekom and many more. Thus, it guarantees a balanced decision-making process.
The governance structure encourages stability, accountability and trust as council members manage important elements of the platform like updating the software, legal compliance, and network economics. Unlike other blockchains, where we find controlled governance by a few miners or stakeholders, the distributed governance model of Hedera is based on council members that provide flexibility and consistency.
How does Hedera Work?
The Hedera Hashgraph ecosystem is a decentralised network of nodes that adds transactions to the common ledger after verifying them. Rapid and efficient transaction processing is ensured via the public Hedera network’s Hashgraph consensus technique, designed for low latency and transaction speed.
Hedera Hashgraph is based on a new consensus mechanism called “gossip about gossip.” Nodes provide details about who they spoke with and what sort of transactions they are aware of until everyone agrees.
Asynchronous Byzantine Fault Tolerance (ABFT) is a property of a census algorithm that allows the nodes on a network to agree on the order of the timing. The tolerance and fairness of this property are maintained while the inefficiencies of blockchain’s proof-of-work are eliminated. Because transactions are time-stamped, the network works on high-speed.
The functioning of Hedera is quite simple. It provides developers with APIs to construct decentralised apps, manage smart contracts, and generate tokens.
The various elements of the Hedera ecosystem work together to construct the network. It includes nodes that keep track of transactions, developers who build dApps and smart contracts using the Hedera SDK, and companies and organisations that experiment with the technology such as IBM and LG.
Businesses can utilise Hedera’s file storage and token services for more effective operations. Regular users can also stake, communicate with dApps, and make payments via HBAR.
How is Hedera Different from Other Blockchains?
Hedera is different and stands out from traditional blockchain platforms due to explicit innovations. Some of its unique characteristics are:
Innovative Consensus Mechanism
Hedera Hashgraph employs the Hashgraph consensus algorithm, which is its own technique. This approach is based on Directed Acyclic Graphs (DAG), allowing for a higher transaction throughput with low latency.
Also, Hebera makes sure that it operates sustainably and does not burn through resources like Bitcoin.
Improve Security
Making use of Asynchronous Byzantine Fault Tolerance puts Hedera above other platforms and enables it to offer outstanding security. Users can assure themselves with fast-speed transactions that are almost impossible to be forged.
Furthermore, participants have been ensured fairness with how their transactions are organised. Once the participants start broadcasting their transactions, it gets ordered for them, which guarantees equilibrium among participants.
Enhanced Functionality
EVM-compatible smart contracts- Hedera Token Service (HTS) and the Hedera Consensus Service (HCS) are the main services provided by Hedera, and these services are directed at more B2B-oriented consumers.
HTS enables customers to create tokens easily by not writing unnecessary codes, and HCS facilitates smooth ordering and time stamping events; these operations are not usually provided by the majority of blockchains.
Fixed and Predictable Fees
Compared to Ethereum and other platforms, Hedera offers stable and low transaction fees, which are appealing to a wide range of businesses. Fees on different platforms vary, which makes businesses hesitant to adopt the technology.
HBAR Coin
The core of the Hedera ecosystem is the HBAR coin. In addition to serving as a governance token, the HBAR token can be used as payment for network services. HBAR’s tokenomics are intended to promote stability and expansion over the long run.
With a well-thought-out tokenomics architecture that promotes the network’s long-term stability and growth, the HBAR token is essential to the Hedera ecosystem.
The 50 billion tokens, which make up HBAR’s fixed total supply, were pre-minted upon the network. Because of limited fixed supply, its value may increase with time. About 70% of total supply is in use as of May 2024, with the remaining tokens being distributed according to a schedule monitored by the Hedera Governing Council.
HBAR Price Prediction

As of January 18, HBAR’s price showed signs of stability at near $0.35. The lower boundary of $0.25 continued to act as a reliable support zone, preventing further declines. Despite the early volatility, this stability hints at equilibrium between buying and selling pressures.
The overall trend during this period indicates a gradual decline after the highs of December 6. However, the token’s ability to hold above $0.36 underscores its resilience amid fluctuating market conditions. Observers may view this consolidation as a potential setup for future movements.
HBAR’s price oscillated significantly between $0.30 and $0.35, suggesting a battle between buyers and sellers. These rapid fluctuations often reflect intensified trading volumes or external market influences.
Future of Hedera
Hedera’s team has revealed an impressive roadmap. As the network moves towards a more decentralised governance and consensus architecture, its potential applications in the financial, gaming, and supply chain sectors grow. With additional advancements like mirror nodes for greater transparency and sharding for scalability, HBAR is expected to become even more beneficial.
Partnerships with major companies like Google and IBM demonstrate support for Hedera’s mission. The increasing use of Hedera for safe micropayments, tokenisation, and identity management points on its bright future. If Hedera can work effectively with regulatory settings and continue to develop new concepts, it might play a significant role in Web3 infrastructure.
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FAQs
1. What is a Hedera Hashgraph?
Hedera Hashgraph is a blockchain alternative that allows one to launch or run decentralised applications (dApps) with relative ease on a public network. Hashgraph places data on a single point making it far more secure and efficient due to the fact that it has a distinct ledger technology as compared to that of other blockchains.
2. How does Hedera differ from other blockchains?
Hedera’s consensus mechanism uses a Hashgraph that relies on Directed Acyclic Graphs (DAGs), which allows it to order transactions on a real time basis. It includes Asynchronous Byzantine Fault Tolerance (ABFT) that facilitates efficient transaction ordering and adds an extra layer of security. To add on, it brings sustainability and development-friendly options such as EMV-compliant smart contracts, Hedera Token Service (HTS), and Hedera Consensus Service (HCS).
3. What services are offered by Hedera?
- EVM-Compatible Smart Contracts: Uses ‘Solidity’ as a supporting tool that allows it to develop and deploy contracts.
- Hedera Token Service: Allows for easy launch and development of both fungible and non-fungible tokens without the need of oral contracts.
- Hedera Consensus Service: Create efficient and strong timestamps and event orders that are useful in identifying supply chains and people’s identities.
4. How is Hedera governed?
Hedera is governed by the Hedera Governing Council. The council is composed of up to 39 corporations including Google, IBM, and Boeing. These council members assist in managing network updates, compliance, as well as economic policies.
5. What is HBAR and its role in the Hedera ecosystem?
HBAR acts as a platform’s native cryptocurrency that is used for a variety of purposes such as transaction fees, staking, and governance. This cryptocurrency is required for the network to function properly and provides the assurance of its long-term stability. HBAR’s rarity is further enhanced by its supply of 50 billion tokens, adding potential value over time.
6. What use cases does Hedera support?
Hedera enables several use cases:
- Cryptocurrency Payments
- Smart Contracts
- Tokenisation
- Consensus Applications