📕Hedera Hashgraph History📕
Hedera Hashgraph begins with Swirlds, a Texas software company founded by computer scientists and former airmen Mance Harmon and Dr. Leemon Baird in 2015. Baird is the mastermind behind hashgraph, a novel consensus mechanism for distributed ledgers from which Hedera takes its surname Hedera is technically a governing body consisting of 16 corporations including Google, IBM, LG, and Boeing. This conglomerate called the ‘Hedera Governing Council’ includes Swirlds, which holds the patent to the hashgraph consensus mechanism and licensed it out to Hashgraph Consortium LLC
🛠How Does Hedera Hashgraph Work?🛠
In contrast to cryptocurrencies like Bitcoin and Ethereum, Hedera Hashgraph does not use blockchain technology. Instead, it uses another distributed ledger technology called a DAG, which is short for directed acyclic graph In the hashgraph consensus, nodes gossip messages to each other about transactions at random. Like gossiping in real life, this information travels fast, and makes it possible for all the nodes on the Hedera Hasgraph network to achieve consensus about a transaction in roughly 3-5 seconds
🕵️♂10 000 TPS?🕵️♂
Hedera Hashgraph’s claims about 10 thousand transactions per second is limited to wallet-to-wallet transactions on the network. This was and still is noted in the first disclaimer under Hedera’s efficiency infographic on the homepage of their website. According to Hedera’s own documentation, the TPS for all other transactions is 10
HBAR has a maximum supply of 50 billion. Some documentation suggests that Swirlds can change the limit. 17% of HBAR’s total supply was sold to private investors in various SAFT sales. It was revealed in December 2019 that the poor price action of the HBAR token was due to SAFT investors constantly dumping their HBAR tokens on the market A SAFT update from October 2020 reveals that around 1.4 billion HBAR tokens were set to be distributed in the fourth quarter of 2020. This suggests that a substantial portion of SAFT investors took Hedera Hashgraph up on the offer.
Hedera Hashgraph’s economic incentives are troublesome. For example, even though Hedera Hashgraph is a proof of stake cryptocurrency, it does not have any slashing. Since Hedera Hashgraph also has no blockchain, this means no block rewards. Instead, validators are incentivized by the network fees they earn for staking HBAR. CEO Mance Harmon also suggested in an interview that validators can upsell Hedera’s services as a middleman
🤝Hedera’s Promising Partnerships🤝
Hedera has made some secured some impressive partnerships in 2020. It appears that most of these partnerships involve the use of Hedera’s Consensus Service via a third-party company. Eric Wall believes the Consensus Service is nothing more than a set of centralized databases using a flashy consensus mechanism to justify a marked-up price.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.