Hedera is a Proof of Stake (PoS) smart contract platform designed for cryptocurrency transactions and decentralized applications (dApps). Unlike traditional blockchains, Hedera utilizes a directed acyclic graph (DAG) technology called the Hashgraph Gossip Protocol, enabling parallel transaction processing and enhanced scalability.
Key Features of Hedera
Directed Acyclic Graph (DAG)
Hedera’s DAG structure allows nodes to verify transactions simultaneously through a randomized, non-linear framework. This addresses the blockchain trilemma—balancing decentralization, security, and scalability—making it ideal for enterprise use.
Use Cases
Hedera supports diverse real-world applications, including:
- Healthcare: Secure patient data management.
- Finance: CBDCs, stablecoins, and DeFi.
- Supply Chain: Transparent asset tracking.
- Governance: Fraud-resistant voting systems.
👉 Discover how Hedera compares to Ethereum
Who Created Hedera?
Founded in 2017 by Leemon Baird and Mance Harmon, Hedera is governed by the Hedera Governing Council, comprising 39 major enterprises (e.g., Google, IBM). The HBAR Foundation oversees development, with initial funding from a SAFT crowdsale.
How Does Hedera Work?
Hedera Network Services
- Hedera Token Service (HTS): Manages fungible/NFT tokens.
- Hedera Consensus Service (HCS): Records transactions/logs.
- Smart Contract Service: Supports Solidity and other languages.
Consensus Mechanism
The Hashgraph Gossip Protocol ensures decentralization:
- Nodes "gossip" to sync data.
- Timestamped events validate transactions.
- No single node controls the network.
How Does HBAR Function?
- Proof of Stake: Users stake HBAR to run validator nodes.
- Proxy Staking: Delegators earn rewards without minimum stakes.
- Tokenomics: Max supply of 50B HBAR, with vesting over 15 years.
Token Distribution
- 23.9%: Ecosystem development.
- 22.26%: Early investors.
- 14.77%: Network governance.
Hedera Essentials
- Smart Contracts: DAG-based, high-throughput platform.
- HBAR Utility: Pays for fees, governance, and dApp development.
- Enterprise Focus: Private/permissioned blockchain solutions.
FAQ
Q: Is Hedera a blockchain?
A: No, it’s a DAG-based ledger offering faster transactions than linear blockchains.
Q: How do I stake HBAR?
A: Stake via validator nodes or proxy staking; no minimum for delegators.
Q: What’s HBAR’s max supply?
A: 50 billion tokens, released over 15 years.
Q: Can Hedera support NFTs?
A: Yes, via the Hedera Token Service (HTS).
Q: Who governs Hedera?
A: The Hedera Governing Council, including top-tier enterprises.
Q: Why use Hedera over Ethereum?
A: Lower fees, higher scalability, and enterprise-grade security.
Note: Trading disclosures are omitted per guidelines. No promotional links included.
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