Swyftx Cryptocurrency Exchange
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Hedera Hashgraph is a public distributed ledger system. Its native token, the "hashgraph coin", is called HBAR.
Hashgraph doesn't use a blockchain like most other cryptocurrencies. Instead, it uses a "gossip protocol" designed to facilitate high speed transactions and fast finality.
This guide explains how Hedera Hashgraph works in simple terms, where and how to buy the HBAR token and what to consider before you do.
Hashgraph is the name of the technology itself. When you boil it all down to its simplest terms, a hashgraph is just a certain way for computers to talk to each other, while a blockchain is a different way.
Hashgraph was invented by a tech company called Swirlds, which then decided to create an entirely public version of this technology. In other words, they wanted to create a completely open hashgraph where anyone can come in and have their computers talk to other computers, which allows for applications such as cryptocurrency.
The native token on this public hashgraph network is called HBAR.
Hedera is the name of the nonprofit governing council responsible for overseeing this public network. That's why this public hashgraph network is called Hedera Hashgraph.
The Hedera organisation is composed of a range of different businesses, one of which is Swirlds. Other Hedera members include Boeing, IBM, Tata and other big names.
The hashgraph distributed ledger is known for being very fast, and people are expecting it to perform 10,000 transactions per second initially and hundreds of thousands of transactions per second further down the line.
Its "trick" is that it gives all the computers in its network a very fast way of talking with each other. Hedera calls this the gossip protocol.
Traditional blockchains work by packaging transactions into blocks and then having miners compete to process each block. Blocks only emerge periodically, so transactions essentially need to hitch a ride on passing blocks if they want to get sent.
By contrast, Hashgraph packages transactions as "events" on the fly and then just lets them wash through the network.
When you make a transaction on Hashgraph, your computer will pack it into an event and communicate that event to two other randomly chosen computers in the network. These two computers will then communicate that transaction to two more and so on.
In other words, they'll "gossip" about events until the whole network knows what happened. At this point, you will have blockchain-like levels of immutability and trustlessness.
This system is made faster by three additional factors:
A Hashgraph transaction can be bundled into several steps:
These three steps take several seconds, after which people can confirm that a transaction is all good and properly sorted out.
There are three different ways of confirming transactions, depending on the level of certainty you need and on whether you trust the computer you submitted it to.
To sell HBAR, you can simply follow the steps above, except select "sell HBAR" instead of buy. This will let you sell your HBAR for BTC on Binance.
You can use the official Hedera Hashgraph wallet. Note that this requires you to pass KYC procedures and verify your identity with Hedera.
To set up your Hashgraph wallet, you will need to do the following:
Hashgraph is still a work in progress, and it's now just one of many next-gen high speed blockchains. It doesn't have the same track record as other projects yet, and people have raised concerns about whether Hashgraph will live up to the predictions made of its technology.
In particular, one of the things people are concerned about is the degree of trust they need to place in the Hedera organisation as well as in the businesses underpinning it and that Hedera Hashgraph may not be a completely open and free network.
For its part, Hedera has emphasised that it sees this as an advantage. It aims to be a distributed ledger for businesses, and it wants to bring a degree of more mundane legal structures and centralisation to the wild west of cryptocurrency.
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