About Hedera (HBAR)

Hedera Frequently Asked Questions (FAQ)

What are the main uses of HBAR tokens within the Hedera network?


The main uses of HBAR tokens within the Hedera network include facilitating network services like smart contracts, cryptocurrency transfers, and file storage; powering micropayments for transactions; and acting as network fuel by paying for transaction fees and node services to maintain network integrity and reward nodes.




How does Hedera ensure the stability and security of its platform?


Hedera ensures the stability and security of its platform through the use of the hashgraph consensus algorithm, which provides high throughput, fair ordering, and low-latency consensus. The platform operates on a permissioned governance model with a council of diverse, reputable organizations that oversee and govern the network. Additionally, Hedera uses state-of-the-art cryptography and regular security audits to protect against attacks and maintain system integrity.




What consensus mechanism does Hedera use and how does it differ from traditional PoW or PoS?


Hedera uses the Hashgraph consensus mechanism, which differs from traditional Proof of Work (PoW) and Proof of Stake (PoS) systems. Hashgraph employs a gossip protocol combined with virtual voting to achieve fast, fair, and secure consensus without the need for mining or staking. This results in higher throughput, lower latency, and more energy efficiency compared to PoW, and doesn't require locking up tokens as in many PoS systems.




What is Hashgraph consensus and how does it contribute to Hedera's performance?


Hashgraph consensus is a distributed ledger technology that uses a gossip protocol and virtual voting to achieve fast, fair, and secure consensus. Unlike traditional blockchain that relies on miners and can be slow and energy-intensive, Hashgraph allows nodes to quickly disseminate information and agree on transaction order with minimal resource usage. This contributes to Hedera's high performance by enabling rapid transaction processing, low fees, and high throughput while maintaining strong security and decentralization.




How does the Gossip-about-Gossip protocol work within Hedera Hashgraph?


The Gossip-about-Gossip protocol in Hedera Hashgraph is a consensus mechanism that involves nodes randomly communicating information (gossiping) about transactions and the gossip they have heard from other nodes. Each node adds information to an event, which includes the transactions and a timestamp, before passing it on. This creates a graph of information that allows all nodes to construct the same hashgraph without centrally coordinated communication. The hashgraph structure then enables virtual voting and consensus on the order and time of transactions with high efficiency and security.




What are the core network services provided by Hedera?


Hedera offers several core network services including Cryptocurrency Service for high-speed, low-fee crypto transactions; Consensus Service offering secure, fair, and fast consensus; Smart Contract Service to execute Ethereum-compatible smart contracts; and the File Service, which allows users to manage files on the distributed ledger.




Can HBAR tokens be staked on the Hedera network, and if so, what is the purpose?


Yes, HBAR tokens can be staked on the Hedera network. The purpose of staking HBAR is to secure the network through a process called 'proxy staking', where the staked tokens are used to weigh votes on transactions, hence contributing to network consensus. Stakers may receive rewards as an incentive for their participation in securing the network.




What makes the Hedera Hashgraph network 'enterprise-grade'?


The Hedera Hashgraph network is considered 'enterprise-grade' due to its high-throughput, low-latency consensus mechanism that enables quick and secure transactions, a robust governance model led by a council of respected organizations, strong security features with asynchronous Byzantine fault tolerance, and its ability to support high-performance DApps with finality in seconds.




Who are Hedera's founders and what are their backgrounds?


Hedera's founders are Dr. Leemon Baird and Mance Harmon. Dr. Baird is known for his invention of the hashgraph consensus algorithm and has a background in computer science with a Ph.D. from Carnegie Mellon University. He has experience in cybersecurity and computer science research. Mance Harmon is an experienced technology executive with a history of developing and managing sophisticated technology projects, with expertise in strategic planning and organizational development. He holds an MS in Computer Science from the University of Massachusetts and an MBA from the University of Chicago.




How does Hedera's governance system work and who are its members?


Hedera's governance is set up as a council model, encompassing a group of diverse organizations across multiple industries. These council members are responsible for overseeing the network's software changes, ensuring legal compliance, and upholding network integrity. The members are chosen based on their reputation, trustworthiness, and industry leadership, aiming to create a decentralized decision-making process. The governance terms are limited, meaning members rotate over time to maintain fairness and widespread representation.




What are the unique attributes of Hedera that distinguish it from conventional blockchain technologies?


Hedera is unique due to its use of Hashgraph consensus, which offers high throughput and low-latency finality. It operates under the governance of a global council of diverse organizations, ensuring decentralized control. Hedera also offers native support for Solidity smart contracts and microtransactions, and is designed for scalable and secure applications.




How many HBAR coins are currently in circulation, and what is the total supply?


As of early 2024, there are approximately 33 billion HBAR coins in circulation with a total supply of 50 billion HBAR coins.




What is the role of Hedera's Governing Council in the network's operations?


Hedera's Governing Council plays a critical role in ensuring the stability, decentralized governance, and continued development of the Hedera network. It is responsible for overseeing the platform's strategic direction, approving updates to the network's codebase, and maintaining the integrity of the network. The council, consisting of diverse and reputable organizations, ensures decisions are made in the best interest of the network's users and its long-term success.




What programming language does the Hedera network utilize for writing smart contracts?


The Hedera network supports writing smart contracts in Solidity, the programming language primarily used for Ethereum smart contracts.




How does Hedera aim to handle high-volume operations like micropayments and data integrity?


Hedera handles high-volume operations through its unique hashgraph consensus mechanism that offers high throughput, low-latency, and cost-effective transactions, suitable for micropayments. For data integrity, Hedera employs cryptographic timestamping and achieves consensus on transaction order to ensure data is immutable and verifiable.




What built-in compliance features does Hedera offer for its users?


Hedera offers built-in compliance features like token KYC verification, which ensures that token issuers can confirm the identity of users. It also includes token freeze functionality, allowing issuers to freeze accounts in case of suspicious activities. Additionally, Hedera supports token supply management features such as minting and burning to control the supply of tokens in circulation.




What are the intended transaction speeds and costs on the Hedera network?


The Hedera network aims to support high-throughput transactions with speeds of up to 10,000 transactions per second (TPS). It seeks to offer low-cost transactions, with fees typically being a fraction of a cent.




How does Hedera's distributed ledger technology work to reach consensus without using blocks?


Hedera uses a unique consensus algorithm called Hashgraph, which operates without blocks. It reaches consensus through a process called 'gossip about gossip' combined with virtual voting. Transactions are spread rapidly across the network by nodes sharing the latest information with each other in a highly efficient manner. Instead of packaging transactions into blocks and then validating them, Hashgraph timestamps transactions in the order they were received, creating a secure, fair, and fast consensus.