Hedera Hashgraph: A rising competitor in the Blockchain space
|In the world of blockchain and smart contract-based networks, Ethereum has been the biggest player and has maintained its leadership position since its inception in 2015. However, Hedera Hashgraph is emerging as a strong contender in the blockchain space, offering an alternative to Ethereum and other established networks.
Hedera is built on hashgraph, a leaderless, faster, lower-latency, and higher- security alternative to blockchain. Hedera offers fixed, low fees denominated in dollars, which means users never have to worry about varying gas fees. Moreover, Hedera has the lowest energy use of any public blockchain, as established by University College London.
Through a conversation with Elaine Song, who is the Chief Strategy Officer at the HBAR Foundation, she shared her insights on the future of blockchain technology and the potential impact it could have on various industries. According to Elaine, the recent surge in popularity of cryptocurrencies has been both exciting and concerning. While she believes that cryptocurrencies have the potential to revolutionize the financial industry, she also recognizes that there are significant risks involved, including regulatory uncertainty, market volatility, and security vulnerabilities.
As Song explained, the unique features of Hedera, including its faster and more secure network, low fees, and flexible services, make it an attractive option for creators looking to build decentralized applications. The HBAR Foundation's funding program is also a significant incentive that has attracted many creators to build on the network.
One of the unique features that make Hedera stand out is its three services: EVM-compatible smart contracts, token service, and consensus service, which offer greater flexibility than Ethereum. Another unique feature of Hedera is its governance structure. The network is governed by up to 39 global organizations and top universities, including IBM and Dell, who run the initial nodes in the network and approve the code base that is deployed on the nodes. This governance model builds trust and transparency, as it assures users that the network is being run by trusted organizations, unlike other networks where it is unclear who is in charge.
To incentivize creators to shift from building on Ethereum, Solana, and other chains, Hedera has established the HBAR Foundation, which offers funding of up to $100k or more to creators who build their projects on the Hedera network. Since its inception, the HBAR Foundation has funded 225 projects and allocated over $400 million. The Foundation's mission is to grow the Hedera ecosystem, and multichain or interoperable solutions/platforms that receive funding from the Foundation have demonstrated a commitment to growing the Hedera network as well.
However, Song acknowledges that the cryptocurrency market is still a new and rapidly evolving space, and investors should exercise caution and conduct thorough due diligence before investing in any cryptocurrency or related asset. At the HBAR Foundation, they take a conservative approach to investing and focus on established projects with strong fundamentals and proven track records.
To qualify for funding, projects undergo a rigorous business and technical due diligence process. The HBAR Foundation does not have a specific threshold (minimum or maximum) for funding, but it allocates capital based on a broad- based strategy that takes into consideration multiple key verticals and industries of interest. The turnaround time for grants depends on the nature of the project or application, with some grants taking only a few weeks, while others may require up to six months of collaborative work with the applicant.
Looking to the future, Song is optimistic about the potential of blockchain technology to revolutionize various industries, but she emphasizes the need to stay informed about developments in the industry and to remain vigilant in the face of regulatory uncertainty, market volatility, and security vulnerabilities. As the competition heats up in the blockchain space, it remains to be seen how much market share Hedera will capture in the coming years, but it is clear that the network is fast gaining traction and may soon give Ethereum and other networks a run for their money.
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