The Hedera Hashgraph platform is built to act as a faster, more secure option to blockchain networks. Instead of relying on energy-heavy mining, it uses a different approach known as DAG (Directed Acyclic Graph).

Hedera Hashgraph relies on the HBAR currency to run the network and cover transaction costs. The token has a fixed supply of 50 billion.

What are Hedera’s key features and how does it work?

A core part of Hedera is its distinctive data structure, The Hashgraph. It was first created for private environments, yet Hedera has adapted the underlying algorithm for its public network. The system is patented and not open-source, which means the blockchain can’t be forked and developers can’t build their own derivative versions.

Hedera’s consensus mechanism is carried out by a limited set of nodes on the Hashgraph that “gossip” with one another. In practice, they evaluate and cross-check information about the network’s transaction history.

During the gossiping process, the network designates a small set of “famous witnesses.” A witness represents an event or transaction; it becomes “famous” when it reaches other nodes early in the consensus workflow. Afterward, the selected nodes compare the gossip they received about these famous witnesses, looking for agreement across a majority of nodes.

Nodes are distributed across the world and administered by a council formed by multinational corporations. This council is responsible for software oversight, protocol changes, and other ongoing network protection functions.

Because only a limited number of nodes are used to establish the history, the Hedera approach aims to prevent transactions from being reversed later. This is different from most conventional blockchains, where consensus is reached by users who propose blocks to be appended to the chain in an open, market-based process. 

In addition, as transactions can be handled at the same time, Hedera Hashgraph can process transactions relatively quickly compared with comparable blockchains. Verification performance can improve as the network sees more transactions.

What can Hedera be used for?

Thanks to its distinct design and compatibility with smart contracts, Hedera supports a range of potential applications. Examples include blockchain gaming, DeFi, and digital identity, among others.

Where can you buy Hedera?

Hedera is available on the CEXs and DEXs listed here.