What is Hedera Hashgraph (HBAR)?

Hedera sees itself as a third-generation public network, which is the next step in the development of bitcoin and Ethereum. The project’s strengths are that it can grow quickly, it is secure, it uses smart contracts, it saves energy, and it has low usage fees.

Hedera Hashgraph is run by a board of reputable companies that are in charge of developing the software and guiding the platform’s overall growth. Boeing, Swirlds, IBM, Nomura Holdings, and Ubisoft are all on the board.

Who Created Hedera Hashgraph and When?

The Hashgraph protocol, which was patented by Swirlds in 2016, is the basis for the Hedera Hashgraph platform. Lemon Bird, who is the technical director of the organization, came up with the solutions.

In 2017, the National Credit Union Association (CUNA) and the Mountain West Credit Union Association used Hedera Hashgraph for the first time in the real world as a shared business network (MWCUA). Mance Harmon, who helped start Swirlds, and Lemon Bird made the Hedera Hashgraph public platform.

In 2018, Hedera Hashgraph, a new company, raised $100 million to help it grow. In 2019, the developers put out a version of the network for the public to test.

Hedera Hashgraph Investors

A number of big investors have put money into the Hedera Hashgraph platform:

• Grayscale Investments is a company that takes care of digital assets. Its parent company is called Digital Currency Group (DCG). DCG has put money into companies like Coinbase, Kraken, Coinlist, Zcash, Ripple, Ledger, and Decentraland. Fenbushi Digital is one of the oldest and most well-known Chinese venture capital firms.
• Vitalik Buterin, one of the people who helped start Ethereum and was listed as a general partner until 2018. The company has taken part in funding rounds for The Graph, 1inch Network, and Nym Technologies. Multicoin Capital, which was founded in 2017, is an investment company that works with cryptocurrencies.
• Multicoin Capital led one of Solana Labs’s first funding rounds and also put money into the FTX exchange. The company announced a $430 million crypto venture fund in July 2022.

How is Hedera Hashgraph managed?

The platform is run by the Hedera Governing Council, which was made up of a number of Fortune 500 companies in 2019. By the end of July 2022, 26 companies and organizations, such as Boeing, Swirlds, IBM, Nomura Holdings, and Ubisoft, will be part of the structure. There is a limit of 39 managers who can take part. Their job lasts for three years, and they can do it again twice.

The council should make sure the codebase is correct and get rid of the dangers of a hard fork. It also decides who can join, makes rules for the network, runs the platform’s bank account, and approves technical changes.

Since the Hashgraph technology is patented, it is against the law to use the Hedera code without a license. The team behind the project says that this method means the network can’t be copied and launched by other crypto market participants.

This is a big difference between the project and bitcoin, where anyone can use the blockchain code and change it as they wish.

How does Hedera Hashgraph function?

The distributed network Hedera Hashgraph uses a directed acyclic graph, which is not the same as the blockchain (DAG). In the DAG, blocks with transactions and other information don’t have a strict linear order like they do in the Bitcoin network. Instead, they are written to the ledger in any order.

Miners compete on the blockchain to process the same transactions and tasks, which wastes energy in a way. On the contrary, the DAG architecture lets many computations run in parallel and independently of each other. This is what speeds up processing and makes the network use less energy.

What is The Purpose of Hedera Hashgraph?

The project’s creators see it as a business platform, so it has a number of features that make it stand out. For example, unlike Ethereum and BNB Chain, a regular user cannot run a smart contract or decentralized application.

What Hedera Hashgraph Can Do

The source code for Hedera is closed, and Swirlds has a patent to protect it. The members of the Hedera Governing Council are in charge of running the platform and making it better.

Developers say that Hedera Hashgraph is an enterprise-level platform where only a small number of users can access the network and build on it. This is one of the few crypto projects that started out with a focus on following the rules.