$0.331
-$0.009733 (-2.7%)
24H
Min
$0
Max
$0
Price
Volume
A measure of how much of a cryptocurrency was traded in the last 24 hours.
$1.281B
Market cap
The total market value of a cryptocurrency's circulating supply. It is analogous to the free-float capitalization in the stock market. Market Cap = Current Price x Circulating Supply.
$12.65B
Max supply
The maximum amount of coins that will ever exist in the lifetime of the cryptocurrency. It is analogous to the fully diluted shares in the stock market.
$50B
Official site
www.hedera.com
Explorer
hash-hash.info
Source code
github.com/hashgraph
Price

One new crypto platform that has garnered significant attention is Hedera Hashgraph – breaking the Top 30 coins by market capitalisation in 2025. But what exactly is Hedera, and what role does its native cryptocurrency, HBAR, play? In this article, we will delve into the intricacies of Hedera, its unique technology, and the utility of HBAR.

Understanding Hedera Hashgraph

Hedera Hashgraph is a public distributed ledger technology that aims to provide a fast, secure, and scalable alternative to traditional blockchain systems. Unlike conventional blockchains that use a linear chain of blocks to record transactions, Hedera employs a unique consensus algorithm known as Hashgraph. This algorithm allows for high throughput and low latency, making Hedera one of the fastest distributed ledger technologies available today.

The Hashgraph Consensus Algorithm

At the core of Hedera's technology is the Hashgraph consensus algorithm. This algorithm utilizes a directed acyclic graph (DAG) structure, which allows multiple transactions to be processed simultaneously. This parallel processing capability is a significant departure from the sequential nature of traditional blockchains. Here’s how it works:

  • Gossip protocol: Nodes in the Hedera network communicate with each other using a gossip protocol. When a node receives a transaction, it shares that information with a randomly selected group of other nodes. This process continues until all nodes are aware of the transaction.
  • Virtual voting: Once the nodes have shared their information, they can determine the order of transactions without needing to communicate directly with every other node. This is achieved through a process called virtual voting, which allows nodes to reach a consensus on the state of the ledger efficiently.
  • Finality: The Hashgraph consensus algorithm provides instant finality, meaning that once a transaction is confirmed, it cannot be reversed. This feature is crucial for applications that require a high level of trust and certainty.

Key features of Hedera

Hedera Hashgraph offers several key features that set it apart from other blockchain platforms:

  • High throughput: Hedera can process thousands of transactions per second (TPS), making it suitable for applications that require high scalability.
  • Low fees: Transaction fees on Hedera are minimal, which is particularly advantageous for microtransactions and applications with high transaction volumes.
  • Security: The Hashgraph consensus algorithm is designed to be resistant to attacks, ensuring the integrity of the network.
  • Governance: Hedera is governed by a council of leading organisations from various industries, which helps maintain the network's stability and security.
  • Energy efficiency: Hedera's consensus mechanism is energy-efficient compared to traditional proof-of-work blockchains, making it a more environmentally friendly option.

The role of HBAR

HBAR is the native cryptocurrency of the Hedera network and serves multiple purposes within the ecosystem. Understanding the utility of HBAR is essential for grasping the overall functionality of Hedera.

  • Transaction fees: One of the primary uses of HBAR is to pay for transaction fees on the Hedera network. Each transaction, whether it involves transferring value, creating a smart contract, or storing data, incurs a fee that is paid in HBAR. This fee structure helps prevent spam attacks and ensures that the network remains efficient and secure.
  • Staking and governance: HBAR holders can participate in the governance of the Hedera network. By staking their HBAR, users can vote on key decisions related to the platform's development and future direction. This participatory approach enhances the decentralization of the network and empowers the community.
  • Incentives for developers: Hedera aims to attract developers to build decentralised applications (Dapps) on its platform. To incentivise this, HBAR can be used to reward developers for their contributions. This creates an ecosystem where innovation is encouraged, and developers are compensated for their work.
  • Integration with other services: HBAR can also be integrated into various services and applications, allowing for seamless transactions and interactions. As more businesses and developers adopt Hedera, the demand for HBAR is likely to increase, further solidifying its role within the ecosystem.

Use cases for Hedera and HBAR

Hedera Hashgraph is designed to support a wide range of use cases across various industries. Here are some notable applications:

Conclusion

Hedera Hashgraph represents a significant advancement in distributed ledger technology, offering a fast, secure, and scalable alternative to traditional blockchains. Its unique consensus algorithm, coupled with the governance model and low transaction fees, positions Hedera as a leading platform for various applications.

HBAR, as the native cryptocurrency of the Hedera network, plays a vital role in facilitating transactions, enabling governance, and incentivising developers. With a diverse range of use cases, from supply chain management to decentralised finance, Hedera is poised to make a lasting impact on the blockchain landscape.

As the adoption of Hedera continues to grow, both the platform and HBAR are likely to play an increasingly important role in the future of digital transactions and Dapps. As to whether you should invest in HBAR, we’re probably going to say something along the lines of what we always say here with altcoins: if you’ve no use for it, don’t buy it.