The Hedera Hashgraph platform aims to be a faster and more secure alternative to blockchain. It avoids the process of energy-intensive mining by using an alternative technology called DAG (Directed Acyclic Graph).

Hedera Hashgraph uses the HBAR currency to power the network and to pay the transaction fees. It has a fixed supply of 50 billion.

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

Hedera’s key feature is its unique data structure, The Hashgraph. It was originally designed for private use, but Hedera has implemented the algorithm into its public network. The technology is patented and not open-source, thus the blockchain cannot be forked and developers cannot create their own versions.

Herdera’s consensus mechanism works by a limited number of nodes on the Hashgraph “gossiping” with each other. Essentially they compare records of the network’s transaction history.

As the nodes gossip, they select a few “famous witnesses.” A witness is an event or a transaction, it becomes famous as it is communicated to other nodes early in the consensus process. The chosen nodes then compare the gossip about these famous witnesses in the majority of nodes.

Nodes are spread across the globe and are governed by a group of multinational corporations, who form a council. The council manages software, changes, and other network safeguarding duties.

By using a limited number of nodes to determine its history, the Hedera model ensures that the transactions will not be undone later. This differs from how most traditional blockchains achieve consensus, in which the state of the blockchain is determined by users who propose blocks to be added to the chain in a market competition open to anyone. 

Furthermore, since transactions can be processed simultaneously, Hedera Hashgraph processes transactions relatively faster when compared to similar blockchains. In fact, the speed of verifying transactions goes up as more transactions are added to the network.

What can Hedera be used for?

Due to its unique features and innovative design and smart contract compatibility, Hedera has a variety of use cases. These include blockchain gaming, DeFi, digital identity amongst other applications.