29 Apr, 24

What is Hedera (HBAR)?

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Hedera (HBAR token), also known as Hedera Hashgraph, is a public network that extends beyond the traditional concepts of blockchain technology, utilising an innovative approach known as the hashgraph consensus for faster, fairer, and more secure digital transactions.

Innovative Consensus Mechanism

At the heart of Hedera is its distinctive consensus mechanism, different from the blockchain’s sequential block addition. Hedera employs a method called “gossip about gossip,” which accelerates transaction veracity by having nodes share information about the information they know, quickly disseminating data throughout the network. This mechanism ensures not only speed but also a high degree of security and fairness in transactions, making it particularly suitable for applications requiring robust and efficient data handling capabilities​.

Unique Features of the Hedera Network

Hedera offers several key services that leverage its hashgraph technology:

  • Token Service: Allows for the creation of both fungible and non-fungible tokens with ease.
  • Consensus Service: Provides a layer of trust for applications needing secure, verifiable logs.
  • Smart Contract Tools: Supports the development of decentralized applications with efficient processing capabilities. These features enable Hedera to handle a variety of use cases, including payments, identity verification, and decentralized finance (DeFi) solutions​.

Decentralized Governance

Hedera is governed by the Hedera Governing Council, which consists of up to 39 diverse organizations from various sectors worldwide, including major corporations like Google and LG. This council oversees decisions on code changes, network pricing, and overall governance, maintaining decentralization and stability. The council structure is designed to prevent any single member from dominating the decision-making process, thereby ensuring a decentralized and democratic management of the Hedera network​.

Environmental Considerations

An appealing aspect of Hedera is its commitment to low-energy consumption, which it achieves thanks to its efficient consensus mechanism. This makes Hedera an environmentally friendly choice in the digital ledger technology space, addressing one of the significant criticisms faced by traditional blockchain technologies​.


Hedera Hashgraph stands out in the digital currency and blockchain alternative landscape for its speed, cost-efficiency, security, and governance model. Its innovative approach to achieving consensus through the hashgraph algorithm offers a promising foundation for a variety of applications, from enterprise solutions to everyday financial transactions.

FAQs About Hedera (HBAR)

  1. What makes Hedera different from blockchain technologies?
    • Unlike traditional blockchains, Hedera uses a hashgraph consensus mechanism that allows for faster transaction speeds and enhanced security by employing a gossip-about-gossip protocol rather than sequential block addition​.
  2. Who governs the Hedera network?
    • The Hedera network is governed by a council composed of up to 39 global organizations, ensuring a decentralized and democratic governance structure​.
  3. What are some use cases of Hedera?
    • Hedera supports a variety of applications including token services, decentralized finance, smart contracts, and consensus services for secure transactions​.
  4. How does Hedera ensure transaction security and fairness?
    • Hedera’s hashgraph consensus employs digital signatures and hash functions to secure transactions, ensuring they are tamper-proof and fair through a unique time-stamping and consensus process​.
  5. What is the environmental impact of Hedera?
    • Hedera is known for its low energy consumption due to its efficient consensus mechanism, making it a more sustainable choice compared to traditional blockchains​.

About Zerocap

Zerocap provides digital asset liquidity and digital asset custodial services to forward-thinking investors and institutions globally. For frictionless access to digital assets with industry-leading security, contact our team at [email protected] or visit our website www.zerocap.com


This material is issued by Zerocap Pty Ltd (Zerocap), a Corporate Authorised Representative (CAR: 001289130) of AFSL 340799. Material covering regulated financial products is issued to you on the basis that you qualify as a “Wholesale Investor” for the purposes of Sections 761GA and 708(10) of the Corporations Act 2001 (Cth) (Sophisticated/Wholesale Client). This material is intended solely for the information of the particular person to whom it was provided by Zerocap and should not be relied upon by any other person. The information contained in this material is general in nature and does not constitute advice, take into account the financial objectives or situation of an investor; nor a recommendation to deal. Any recipients of this material acknowledge and agree that they must conduct and have conducted their own due diligence investigation and have not relied upon any representations of Zerocap, its officers, employees, representatives or associates. Zerocap has not independently verified the information contained in this material. Zerocap assumes no responsibility for updating any information, views or opinions contained in this material or for correcting any error or omission which may become apparent after the material has been issued. Zerocap does not give any warranty as to the accuracy, reliability or completeness of advice or information which is contained in this material. Except insofar as liability under any statute cannot be excluded, Zerocap and its officers, employees, representatives or associates do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this material or any other person. This is a private communication and was not intended for public circulation or publication or for the use of any third party. This material must not be distributed or released in the United States. It may only be provided to persons who are outside the United States and are not acting for the account or benefit of, “US Persons” in connection with transactions that would be “offshore transactions” (as such terms are defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). This material does not, and is not intended to, constitute an offer or invitation in the United States, or in any other place or jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer or invitation. If you are not the intended recipient of this material, please notify Zerocap immediately and destroy all copies of this material, whether held in electronic or printed form or otherwise.
 Disclosure of Interest: Zerocap, its officers, employees, representatives and associates within the meaning of Chapter 7 of the Corporations Act may receive commissions and management fees from transactions involving securities referred to in this material (which its representatives may directly share) and may from time to time hold interests in the assets referred to in this material.  Investors should consider this material as only a single factor in making their investment decision.

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