Hedera is currently trading at $0.1549**, with a 24-hour trading volume of **$235.46 million. Over the past day, HBAR has seen a price change of +0.00%, indicating stable market activity. The circulating supply stands at 42.39 billion HBAR, out of a maximum total supply of 50 billion, leaving room for future distribution and network growth.
As one of the most talked-about enterprise-grade public networks in the blockchain space, Hedera Hashgraph continues to attract attention for its unique consensus mechanism, high throughput, and strong governance model. This article explores what sets Hedera apart, how it works under the hood, and why developers and enterprises are increasingly adopting it for real-world applications.
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What Is Hedera?
Hedera Hashgraph is a high-performance, enterprise-grade public distributed ledger designed to power decentralized applications (dApps), digital assets, and secure data transactions at scale. Unlike traditional blockchains that rely on energy-intensive proof-of-work mechanisms, Hedera uses a revolutionary consensus algorithm called hashgraph—a directed acyclic graph (DAG)-based system that enables fast, fair, and secure consensus.
At the heart of the network is HBAR, the native cryptocurrency that powers all operations on the platform. HBAR serves multiple functions:
- Paying transaction fees
- Securing the network through staking
- Enabling micropayments for data and service transfers
One of Hedera’s standout features is its use of virtual voting instead of traditional mining or block production. Nodes don’t broadcast full transaction data; instead, they exchange “gossip about gossip” and “gossip about the gossip about gossip.” This innovative approach allows nodes to reach consensus efficiently while solving the asynchronous Byzantine fault tolerance (aBFT) problem—making the network highly secure even under adversarial conditions.
Because of this, Hedera achieves:
- Near-instant transaction finality (within seconds)
- Extremely low latency
- High security with mathematical proof of fairness
- Energy-efficient operations
These advantages make Hedera an ideal choice for businesses seeking scalable, sustainable, and compliant blockchain solutions.
A Brief History of Hedera Hashgraph
Founded in 2018 by computer scientist Leemon Baird and tech executive Mance Harmon, Hedera Hashgraph was built from the ground up to address the limitations of existing blockchain technologies—particularly around speed, cost, and centralization concerns.
From its inception, Hedera adopted a unique governance model led by a council of globally recognized organizations. Current members include industry leaders such as:
- IBM
- LG Electronics
- Deutsche Telekom
- Tata Communications
This multi-party governance ensures no single entity controls the network, promoting long-term decentralization and regulatory compliance.
In terms of performance, Hedera claims its hashgraph technology can handle over 10,000 transactions per second (TPS)—a significant leap compared to Bitcoin’s ~2.8 TPS and Ethereum’s ~15 TPS (pre-upgrades). This makes it highly competitive for applications requiring high throughput, such as payments, supply chain tracking, and identity verification.
Additionally, in early 2022, Hedera announced plans to open-source its hashgraph algorithm to encourage broader adoption and innovation within the decentralized ecosystem. The project has raised $127.8 million across nine funding rounds, with investors including Boeing’s HorizonX Ventures and Vestinwolf Alternatives.
How Does Hedera Work?
Hedera operates using the hashgraph consensus algorithm, which is fundamentally different from blockchain-based systems. Instead of grouping transactions into blocks and chaining them together, hashgraph records transactions in a gossip protocol-driven DAG structure.
Key Components of the Network
1. Consensus Nodes
These are responsible for maintaining the state of the ledger and agreeing on the order and validity of transactions. Initially operated by members of the Hedera Governing Council, these nodes ensure high reliability and compliance. Over time, the network aims to transition toward permissionless node operation, allowing broader participation.
2. Mirror Nodes
Mirror nodes replicate data from consensus nodes and provide historical records for analytics, auditing, and blockchain explorers. They allow developers to query past transactions efficiently without burdening the main network.
3. Network Services & APIs
Hedera offers several core services via easy-to-use APIs:
- Cryptocurrency Service: Transfer HBAR tokens
- Token Service: Create fungible and non-fungible tokens (NFTs)
- Smart Contract Service: Deploy and execute smart contracts
- File Service: Store immutable data on the ledger
Each API call incurs a small, predictable transaction fee paid in HBAR—ideal for budgeting in enterprise environments.
Developers can interact with these services using official Hedera SDKs available in popular programming languages like JavaScript, Java, and Go.
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Use Cases and Advantages of Hedera Hashgraph
Hedera is engineered for real-world utility across industries where speed, fairness, and compliance matter.
Why Choose Hedera?
âś… Speed & Scalability: Processes over 10,000 TPS with sub-second finality
âś… Security: Mathematically proven aBFT security model
âś… Fairness: Transactions are timestamped fairly; no miner manipulation
âś… Low Cost: Predictable fees suitable for microtransactions
âś… Regulatory Compliance: Designed to meet international data standards
Real-World Applications
- Supply Chain Tracking: Immutable logging of product journeys from origin to consumer
- Digital Identity: Secure self-sovereign identity solutions
- Central Bank Digital Currencies (CBDCs): Partnered with central banks for pilot programs
- Content Monetization: Fair royalty distribution using NFTs and smart contracts
- Fraud Prevention: Tamper-proof audit trails for financial records
Because transactions are processed in parallel—not sequentially—Hedera avoids bottlenecks common in traditional blockchains.
Frequently Asked Questions (FAQ)
Q: Is Hedera a blockchain?
No, Hedera is not a blockchain. It uses a hashgraph consensus algorithm, which is a different type of distributed ledger technology based on a directed acyclic graph (DAG). While both aim to achieve decentralization and immutability, hashgraph offers faster speeds, higher security, and fairer transaction ordering.
Q: What is HBAR used for?
HBAR is the native cryptocurrency of the Hedera network. It is used to:
- Pay transaction fees
- Prevent spam attacks (via bandwidth allocation)
- Stake to help secure the network
- Facilitate fast micropayments
Q: How does Hedera achieve consensus without mining?
Hedera uses gossip about gossip and virtual voting to achieve consensus. Nodes share information about transactions they’ve seen, then infer agreement without needing to vote explicitly. This process is energy-efficient and mathematically secure.
Q: Can anyone run a node on Hedera?
Currently, only approved members of the Hedera Governing Council operate consensus nodes. However, mirror nodes can be run by anyone. Future upgrades plan to introduce permissionless node participation.
Q: Is Hedera environmentally friendly?
Yes. Unlike proof-of-work blockchains like Bitcoin, Hedera does not require massive computational power. Its hashgraph consensus is energy-efficient, making it a sustainable option for large-scale deployment.
Q: How does Hedera compare to Ethereum?
While Ethereum supports a vast ecosystem of dApps and smart contracts, it faces scalability challenges during peak usage. Hedera offers faster transaction speeds, lower fees, and built-in services for tokens and files—making it better suited for enterprise-grade applications requiring consistency and compliance.
Final Thoughts
Hedera Hashgraph represents a new frontier in distributed ledger technology—one that prioritizes performance, fairness, and real-world applicability. With strong backing from global tech giants, a robust governance framework, and cutting-edge consensus mechanics, it’s well-positioned to become a cornerstone of enterprise blockchain adoption in 2025 and beyond.
Whether you're a developer building scalable dApps or an organization exploring secure digital transformation, Hedera offers a compelling alternative to traditional blockchain platforms.
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