CoinSpot Cryptocurrency Exchange
- Buy 140+ cryptos
- Range of payment methods
- 0.1% market order fee
- 1% instant buy fee
Updated . What changed?
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
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.
Hedera is made up of 40 governing organisations which represent a range of industries. Some of the more recognisable members include Google, IBM, LG and Boeing. The council decides on issues such as changes to the codebase, treasury management, network security, mutability and legal compliance.
This corporate hands-on approach by Hedera Hashgraph is in stark opposition to distributed ledgers such as Ethereum and Cardano which emphasise the importance of decentralisation and community management.
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.
Learn more about the DOT cryptocurrency in this beginner’s and buyer’s guide.
Learn more about the AAVE cryptocurrency in this beginner’s and buyer’s guide.
Learn more about how PayActiv's Earned Wage Access service can help you access up to $500 of your paycheque for a $5 fee charged fortnightly (only if you access your wage before payday).
Learn more about the UNI cryptocurrency in this beginner’s and buyer’s guide.
Learn more about the BAL cryptocurrency in this beginner’s and buyer’s guide.
With price feeds, verifiable on-chain randomness and more, blockchain games can get a lot of use out of oracles.
Learn more about the RUNE cryptocurrency with this beginner’s and buyer’s guide.
Buy bitcoin and Ethereum with selected fiat currencies through Luno’s easy-to-use platform.
Learn more about the REN cryptocurrency in this beginner’s and buyer’s guide.
SPONSORED: Your crypto is only worth something if you don’t lose it. Here’s how to keep it safe from start to finish.
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of banks, insurers and product issuers. We value our editorial independence and follow editorial guidelines.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product or service.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan.
Products marked as 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money here.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.