- Super cheap to transfer money using HBAR token (costs about $0.0001).
- Partnerships with big enterprises.
- Financial rewards for securing the network and participating in staking.
- Great way to earn a passive income by staking HBAR tokens.
- Cross-chain compatible network.
- Even though Hedera claims to be a decentralized network, much of the supply is still with the parent company making it a centralized cryptocurrency network.
- Staking and the membership of the governing council is not open to all. </li
Hedera Token (HBAR) in a nutshell
The Hedera token is the primary and native token of the Hedera Hasgraph blockchain network that utilizes an alternative to traditional blockchain systems. It uses a hashgraph that arrives at a consensus mechanism through a network of nodes operated by a governing council comprised of enterprise industry leaders.
The Hedera token is used for payment of fees inside the network and is also used as a staking and governance token. The Hedera blockchain is super quick and can process transactions within 5 seconds. It claims to possess the ability to process 10,000 transactions in one second.
The initial total supply of HBAR is 50 billion tokens. The Hedera token has a finite supply. The total supply is thus fixed at 50 billion as new coins cannot be created. The distribution mechanism is explained below.
Founders: 4 billion
Team: 350 million
Rest: Staking and marketing
Has Hedera Token been audited and doxxed?
Yes. The HBAR token has been audited by FP Complete and is also doxxed properly. Hedera publishes regular documentation via press releases and is active on social media channels.
Trust & Fairness: 5
Exchanges & Swaps: 4
Overall Rating: 4.25
Detailed Review of Hedera Token (HBAR)
The Hedera token makes use of an alternative form of the Proof of Stake network system known as Hashgraph. This is a blockchain alternative that is claimed to be more secure, quicker, and resistant to attacks.
Unlike traditional blockchains where a user or a group of users identify and discover the next block, in the case of Hedera, the decision about adding the next block is taken by a collective group (node). The system uses what is known as gossip-about-gossip and voting to arrive at a consensus mechanism. Since no block is actually discarded and everything is retained, Hedera Hashgraph comes with a no fork guarantee. The blockchain will never need to fork and is protected against attacks by malicious actors.
The Hedera network uses a governance council consisting of 39 enterprise members that function as nodes securing the network. However, the network plans to open the staking and governance to all members in the future. Big names such as Google, Tata Communications, IBM, and Wipro were part of the first governance council of Hedera.
The Hedera network claims to process transactions in five seconds maximum and the fees is also lower as compared to other similar networks at $0.0001.
The stakers help in validating the transactions and weighted voting is used to ensure bad actors stay away from the network. A bad actor would need about 30% of the total token supply to be able to vote and manipulate the network.
The native token HBAR is used for payment of fees and also as a governance token inside the network. I can be staked through staking ability is not open for retail players at the moment.
The Hedera network is future-proof and can be used to build healthcare systems, use data efficiently in supply chain solutions, prevent identity theft and fraud, build open distributed ledger systems, payment solutions, and gaming ecosystems.
The Hedera hashgraph technology is being used by applications such as Abra that helps in processing payments in many jurisdictions across the globe. The HBAR token is also available through NowPayments, a cryptocurrency payment solutions provider.
The HBAR Foundation provides grants to interesting and upcoming blockchain projects. The Luna Accelerator Launchpad program helps in launching NFT projects that are able to gain from the experience of the HBAR Foundation.
The major criticism of the Hedera network has revolved around membership being open to a few enterprises taking away the decentralization aspect of blockchain. Usually, blockchain technologies keep membership open to anybody who owns a token. However, the Hedera blockchain plans to shift soon towards a more decentralized and open system in the future. Having a close-knitted governing council helps in keeping bad actors away keeping the Hedera system super secure at all times.
Where to Buy Hedera Token?
The HBAR token is available on most exchanges. It is a popular cryptocurrency and you can buy HBAR on some leading exchanges including Gate.io, LBank, BitMart, Binance, Coinbase, OKEx, Kraken, BitStamp, Woonetwork, TokoCrypto, WazirX, Bittrex, CoinDCX, Bitbns, eToro, Crypto.Com, and HotBit.
You can buy HBAR either through cash via P2P (peer to peer), credit or debit cards or through other cryptocurrencies.
If you already hold some crypto, then you can use the coins to purchase HBAR directly through a supported decentralized exchange known as ChangeNow. All you need to do is connect your wallet such as metamask and select the appropriate coin pair that you wish to use for purchasing HBAR (for example: BTC/HBAR or ETC/HBAR). The decentralized exchanges are a quicker and easier method that guarantees anonymity as you do not have to deposit fiat currencies or complete a KYC process before purchasing the Hedera Token. You can also use HBAR for purchasing other altcoins through the decentralized route as explained above.
What Can you do With the Hedera Token?
Hodl as a long term investor: You could simply hodl it and gain from its price appreciation in the long term. The token can also be used for deposits on supported wallets and exchanges to generate an interest yield.
Use HBAR to pay for goods and services: The HBAR cryptocurrency is supported by many payment carriers and can be used to pay directly for goods and services. It provides a quick and near-instant method for settling payments.
Swap HBAR to other BSC/ETH tokens: You can use HBAR and directly swap to other altcoins on a decentralized exchange. The process is quick and simple, and is described below.
How to Swap HBAR to other altcoins
Simply head over to a decentralized exchange and connect your wallet. Then, select the amount of HBAR you wish to spend (factoring in transaction fees) and swap for another crypto token. You will receive the tokens in the same wallet.
How to Buy HBAR?
In order to buy HBAR, you will need to use a centralized exchange or a decentralized exchange. Decentralized exchanges (DEXs) are simple and easy to use and do not require any registration. The process of token swap on DEXs has been explained above.
For purchasing HBAR on a centralized exchange, you will need to register and create an account with the exchange and then deposit fiat currencies or crypto assets that can be used to buy HBAR. You will need to complete the Know Your Customer (KYC) procedure to open an account on a centralized exchange.
Steps to open an account on a centralized exchange:
1. Go to the exchange site where HBAR is listed and click on the Register button.
2. Then select your country of residence and proceed to the registration interface. Here, you will need to provide your email ID/phone number and a password that will be used to login into the newly created account.
3. Click on the agree to terms and conditions button and wait for the verification mail or message.
4. Clicking on the verification tab will take you to your new account. You will need to provide documentation such as a driving license, passport, or other government-issued IDs to confirm your identity and address. A utility bill and national ID may also be accepted in some cases. This process is known as the KYC regulation and it is in place to prevent the risk of fraud and to ensure that the site is safe for all users.
5. Once this additional step is completed, the exchange will activate your account and you can deposit funds to start trading. You can select fiat currencies or cryptocurrencies supported by the exchange to deposit funds to buy HBAR.
6. Most exchanges support multiple payment methods including credit/debit cards, bank transfers, third-party payment processors, and P2P transfers.
The Hedera hashgraph network will soon launch proxy staking and open membership to all making it a truly decentralized network.
The all-time high price of one HBAR was
s $0.57 on September 15, 2021. It is currently trading at $0.24 at the time of writing (Source: CoinGecko). The all-time low price was $0.0098 on January 2, 2020. Comparing the all-time low and the all-time high price, we get returns of about 2418% which are very impressive returns. The HBAR token has established its position as a leading cryptocurrency.