- >Buying Crypto
- >Hedera Hashgraph: Everything You Need to Know About Buying HBAR
Hedera Hashgraph: Everything You Need to Know About Buying HBAR
Hedera Hashgraph is a public network that uses a new distributed ledger technology (DLT) known as Hashgraph. Though data is stored in hashes instead of blocks, Hashgraph works like a blockchain.
In Hashgraph, transactions are verified through virtual voting and gossip protocol, consequently, a faster and more secure network.
Hedera is the only public ledger utilizing Hashgraph, and with its “no-fork” guarantee, it ensures no other team uses this technology. This builds a safe and stable environment for application builders and ensures long-term confidence in the network.
In this review, you’ll learn more about the Hedera Hashgraph network and hbar cryptocurrency.
HBAR Pros & Cons
Pros
Fast transaction/second compared to Bitcoin & Ethereum with very low transaction fees
Unique & first of its kind with a secure, scalable & fair network
Great for enterprise sector with an emphasis on energy efficiency
Cons
The network can only handle ten transactions/second for transactions invoking smart contracts (similar to Ethereum)
Still a relatively small project compared to some of the titans of the industry
The development of Hedara Hashgraph is centralized thanks to it’s no-fork policy
Best Exchanges for Buying Hedera Hashgraph
Hedera Hashgraph (hbar) is available on multiple cryptocurrency exchanges and OTC trading desk. You can even purchase it directly inside several cryptocurrency wallets if you’re in the right jurisdiction. Here are our favorite exchanges for buying HBAR:
- Easy sign-up process
- Lowest transaction fees of any major exchange
- 175+ different digital assets available
- Free deposits
HBAR Ratings
Supply:
- Total: 50,000,000,000 hbars
Network Speed
- Rating: High
- Reason: The Hedera network can handle up to 10,000 transactions/second. Theoretically, the network can tackle 500,000 transactions/second.
Developer Engagement
- Rating: Low
- Reason: Because of the no-fork policy, only the Hedera team is involved in the development.
Liquidity
- Rating: High
- Reason: Unique characteristics of Hedera Hashgraph brought about its explosive growth in popularity. It’s available on major exchanges with a daily volume of millions of dollars with a circulating supply of 8.6 million hbars.
How to Buy HBAR
Hedera Hashgraph is relatively easy to buy when you are using an exchange like Binance. It really just comes down to five steps.
- Sign-up for Binance
- Provide identify verification
- Link a bank account or debit/credit card
- Fund your account
- Purchase HBAR using a trading pair like USD/HBAR or BTC/HBAR if you want to use crypto
Is Hedera Hashgraph Energy Efficient?
Hbar, the native cryptocurrency of the Hedera network with a maximum supply of 50 billion, is very energy efficient. For each transaction, hbars are used to compensate network nodes for storage, compute, and bandwidth.
Hbars are also utilized for weighted voting, and network protection since Hedera uses the proof-of-stake concept instead of proof-of-work. This means that to maliciously affect consensus, a bad actor must own one-third of the total supply, which will be impossible for the first five years.
Does HBAR Offer Staking Rewards?
HBAR doesn’t currently offer staking rewards to validators but it is built into the road map for the crypto and will likely be incorporated in the future.
There has also been rumors that HBAR might get listed on one of the crypto lending platforms like Celsius Network, Nexo or Block so that users might be able to earn yield that one.
Finally Binance tends to offer a small percentage of yield for anyone willing to lock up their coins but the rate varies.
Advantages of Hedera Hashgraph
Hedera Hashgraph uses its unique DLT technology instead of a blockchain, which improves speed, cost, and scalability.
Transactions in the Hedera network have a nominal fee of US$0.0001 and reach finality in three to five seconds. Moreover, the network can handle up to 10,000 transactions/second, a considerable improvement compared to most popular blockchains.
Hashgraph uses asynchronous Byzantine Fault Tolerance (ABFT) as its consensus algorithm. ABFT is considered one of the most secure algorithms and is resistant to DDoS and Sybil attacks, significantly improving network security.
Moreover, Hedera Hashgraph is fair because no leader node or miner has special privileges to determine the consensus timestamp assigned to a transaction. Rather, the consensus timestamps for transactions are calculated via an automated voting process, through which the nodes establish consensus democratically and collectively.
Disadvantages of Hedera Hashgraph
Even though there are no specific disadvantages in the Hedera Hashgraph network, some consider the governance of 39 enterprises over the network a downside, defeating the decentralized concept by giving control to specific individuals and building a centralized node structure.
But this is not the complete story. Every member of the governing council is term-limited, meaning they can only be council members for two consecutive three-year terms. This arrangement prevents too much power from being held by a specific organization, and in the early stages, helps the stability of the network.
In addition, this centralized node structure is not permanent, and Hedera is moving toward the complete decentralization of its network. Soon, they will have a huge diversity of nodes globally, ordinary people who meet the basic requirements for CPU, Storage, and bandwidth can host the nodes.
Hedera Hashgraph Frequently Asked Questions
T-Mobile is one of Hedera’s governing council members like Google, IBM, LG, etc.
No one can say for sure but it does offer some compelling features including extremely fast and green transactions.
It is governed by an expert council consisting of 39 global enterprises in 11 different industries, which is structured to fulfill the desire for decentralized governance. Hedera is moving down its path to full decentralization of its network, allowing anyone to earn hbars for contributing towards Hedera network consensus.
HBAR has unique features coupled with a professional team, enabling it to overcome the shortcomings of blockchain; It’s proof of its potential to grow rapidly.
Multiple business participants can use Hedera to create a real-time view of logged application events, enabling predictive analysis and detection of fraud before it occurs. In addition, organizations can achieve trust in business-to-business transactions by connecting existing applications and middlewares into Hedera Consensus Service.
The Hedera network uses a proof-of-stake concept instead of proof-of-work that consumes a considerable amount of energy to process a transaction. Hedera network has managed to lower energy consumption to a negligible amount of 0.00017KWH (for Bitcoin network: 885 KWH, and for Ethereum: 102 KWH) with its proof-of-stake method.
Hedera is designed for low latency transactions with finality in three to five seconds. It currently performs 6.5 million transactions per day with an average transaction time of five seconds. Theoretically, the transaction number can be scaled up to 500,000 transactions/second and is only limited by network bandwidth.
