What is HBAR (Hedera)? – History, Advantages & Disadvantages of HBAR

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What if I give you the benefits of a secure cryptocurrency without the scalability problems, performance issues, and costs of blockchain technology? That’s a fascinating question behind Hedera Hashgraph and its HBAR cryptocurrency. The Hedera open ledger runs on an alternative distributed database architecture that promises to run faster, provide greater decentralization, ease environmental concerns, reduce costs, and scale to meet real-world demands better than blockchains.


All that being said, now let me briefly expound on what HEDERA cryptocurrency is and the advantages and disadvantages you should consider before investing in HEDERA CRYPTOCURRENCY.



$HBAR is both a general-purpose cryptocurrency and the utility token of the Hedera network. $HBARs are used on the network to pay fees for transactions. The tokens are also staked to network nodes to provide a weighted voting system to validate transactions. This Proof of Stake mechanism is not the same as PoS systems implemented by Ethereum and other blockchains, but it serves much the same role. $HBAR runs on the Hedera Hashgraph network much as the Ether cryptocurrency runs atop the Ethereum blockchain.



Leemon Baird, the co-founder of Swirlds Inc and a former Computer Science Professor, founded Hashgraph technology in 2016. However, the project “Hedera Hashgraph” was launched in 2018 in partnership with Mance Harmon, who helped Leemon developed the proof of concept, commercialize Hashgraph to implement in private businesses, and battle-test it in permissioned environments.


This new form of distributed ledger technology promised to process upwards of 2,510,000 (2.5m) transactions per second. This is in stark contrast to blockchains that were struggling to process even 10 or 20 transactions per second at that time.

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So in 2017, Swirlds raised its seed investment round to bootstrap the development of HEDERA. A year later, the project’s mainnet went live. Hedera Governing Council now includes over seventeen (17) companies, including Boeing, Google, IBM, Tata Communications, and LG Electronics, to name a few.

The native token of Hedera Hashgraph, HBAR was launched in Sep 2019 at $0.11. In the first half of March, the coin reached its all-time high of $0.39 per coin.



  1. Fast transactions and cheap transactions
  2. Low transactions fee: The fee is $0.0001, which is SO low it’s hard to wrap your mind around. The fee also doesn’t change how clogged the network is (unlike Ethereum). BTC fee is around 2$ to 10$.
  3. Low energy consumption is around 0.00017 kW per hour compared to Bitcoin’s 885 kW.




  1. Not decentralized because nodes are only run by the inner circle and large and powerful cooperate bodies such as GOOGLE, LG IBM etc
  2. Name: you may think a name doesn’t mean much but it does. one of the biggest things any brand or company should look for is the name i.e how simple and unique the name is, and can people easily remember the name.
  3. The third negative is the project will never truly belong to the public as a blockchain does. The technology behind Hashgraph has a patent on it. Leemon Baird the creator owns the patent.
  4. Lastly, there is no staking or mining to earn money with this system. They do plan on introducing staking in the future.

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