Introduction to Hedera

Hedera is a public distributed ledger network that is different from traditional blockchain projects. It uses the Hashgraph consensus algorithm instead of the common blockchain technology. Hashgraph is a technology based on a Directed Acyclic Graph (DAG) that achieves consensus quickly by directly transmitting information between nodes, which is different from traditional blockchain. This innovative technology gives Hedera significant advantages in processing speed, transaction throughput, and security.

The uniqueness of the Hashgraph consensus algorithm

Unlike the block structure adopted by blockchain projects such as Bitcoin and Ethereum, Hashgraph uses the “gossip protocol” and combines “virtual voting” to achieve consensus during the transaction propagation process. Each transaction is rapidly propagated between multiple nodes in the network, and the nodes confirm the transaction by sharing information, without relying on miners or validators for centralized confirmation. This design allows Hedera to process hundreds to thousands of transactions per second, with TPS (transactions per second) exceeding 100,000, far surpassing most traditional blockchain projects.
In addition, Hedera ensures the security of the network through the aBFT (Asynchronous Byzantine Fault Tolerance) mechanism, which guarantees that the network can remain up and running even in the event of node problems.

Image source:https://hedera.com/

Hedera’s technical advantages

Fast, secure, low-cost transactions

One of the biggest advantages of Hedera is its extremely high transaction speed. Compared to traditional blockchain technologies, Hedera is able to process a large number of transactions in a very short period of time, and each transaction can be securely and transparently recorded. With its high TPS and low-latency transactions, Hedera is well-suited for enterprise applications that require efficient and real-time processing.

Tokenization and Enterprise-Level Governance

Another major advantage of Hedera is its governance structure. Unlike fully decentralized blockchains like Ethereum, Hedera adopts a “governing council” model, with council members including top global enterprises such as Google, IBM, Boeing, and Deutsche Telekom. These members not only play a crucial role in network management and policy-making, but also bring rich resources and technical support to Hedera. This gives Hedera a significant competitive edge in enterprise applications, especially in traditional financial sectors.

Hedera’s tokenization partnership model

BlackRock enters traditional asset tokenization

In 2024, Hedera attracted the attention of one of the world’s largest asset management groups - BlackRock. BlackRock partnered with Hedera to take an important step in bringing traditional financial assets into the blockchain world through the tokenization of its Money Market Fund (MMF). This collaboration, with the support of Archax (digital asset exchange), Ownera (institutional digital asset platform), and the HBAR Foundation, successfully tokenized the MMF, allowing these assets to be traded on digital asset exchanges. In this project, BlackRock did not rely solely on the Hedera blockchain platform, but collaborated with multiple partners to leverage Hedera’s underlying technology to tokenize the assets. This collaborative model not only demonstrates Hedera’s technical advantages but also highlights its potential applications in traditional financial markets.

Tokenization Process and Advantages

The process of tokenization converts the shares of traditional financial assets into digital tokens, which investors can purchase to indirectly hold a share of the asset. This approach makes trading traditional assets more flexible and efficient, as tokens can be quickly traded on digital asset exchanges without going through the traditional purchase and redemption process. This convenient asset trading model greatly improves liquidity and makes large-scale asset management and investment more transparent and easy to operate.

Hedera’s enterprise governance and resource advantages

Hedera’s governance model makes it more suitable for the needs of large enterprises and financial institutions. Hedera’s governing council is composed of globally renowned companies, including Google, IBM, Boeing, and Deutsche Telekom. With the support of these large enterprises, Hedera can not only obtain stable technical and financial support, but also better connect resources and partners to promote the development of the network.
In addition, Hedera’s node operation is more controlled than traditional blockchain networks, ensuring a high level of consistency and security in network operations. By controlling the joining of nodes, Hedera avoids the potential instability and security risks brought about by decentralization. This governance model is particularly suitable for enterprise-level applications that require efficiency, security, and control.

HBAR Tokenomics and Market Performance

Total supply and supply structure

• Total Supply: The total supply of the Hedera network is 50 billion hbars. This total supply cannot be modified without unanimous consent from all members of the Hedera Council.
• Unreleased Supply: All hbars are initially considered as “Unreleased Supply”, which means tokens that have not yet been transferred to user accounts. These unreleased supplies can be divided into two categories:
  • Unallocated Supply: Hbars that have not yet been allocated to a specific purpose, stored in a specific account and without a determined use.
  • Allocated Supply: hbars allocated for specific purposes as determined by the Hedera Council.
• Released Supply: When unreleased supply is transferred to a user’s account, it is reclassified as ‘Released Supply’. Hedera does not explicitly use the concept of ‘Circulating Supply’, but ‘Released Supply’ is one way to measure circulating supply.

Token Distribution and Release Plan

Hedera’s token distribution includes multiple categories, reported quarterly and forecasted based on various commitments. The main distribution categories and ratios are as follows:

• Initial development cost and licensing (7.74%): Used for licensing and deploying Hashgraph technology.
• Purchase Agreement (25.40%): Including hbars sold through SAFT (Simple Agreement for Future Tokens) and TPA (Token Purchase Agreement).
• Network governance and operations (16.23%): used to pay compensation to founders, employees, and contractors.
• Ecosystem and Open Development (50.50%): Used to incentivize the community, developers, and ecosystem construction, supporting the decentralized Hedera network.

Main Token Distribution Pool

• Initial development costs and licensing: These hbars are used to pay for the licensing fees of Hashgraph technology, including fees paid to Swirlds, the founding company of Hashgraph technology.
• Purchase Agreement: These hbars are sold to investors through SAFT and TPA, mainly supporting the launch and operation of the Hedera network.
• Network Governance and Operations: This portion of hbars is used to pay the compensation of Hedera founders, employees, and other key participants to ensure the normal operation and governance of the network.
• Ecosystem and Open Source Development: These hbars are used to facilitate the development of the ecosystem, including providing rewards and funding to the community, developers, organizations, etc., to promote decentralization and the development of key applications.

图&数据来源：https://hedera.com/treasury-management-report

As of January 27, 2025, the market value of HBAR is about $12 billion, with recent high volatility. Please trade with caution and be aware of the risks. HBAR is now listed on Gate.io’s Innovation Zone. Click to trade:https://www.gate.io/trade/HBAR_USDT

Summary

Hedera ($HBAR) has attracted traditional financial giants such as BlackRock through its innovative Hashgraph consensus algorithm and enterprise-level governance structure, opening up new avenues for the enterprise-level application of blockchain technology. As more and more institutions pay attention to and utilize Hedera’s technology, its potential in finance, asset tokenization, and other fields should not be underestimated. For investors, understanding Hedera’s technological advantages and market dynamics, as well as grasping its underlying partnership models and industry trends, will be key to discovering the value of this project.