Why HBAR Is The Future Of Cryptocurrency - A Dive Into Hedera’s Superior Technology
(Excerpt...see article linked above for more details)
What makes HBAR superior to other cryptocurrencies?
"...HBAR boasts some pretty impressive features like high throughput, low fees, and instant block confirmations. The Hedera network processes 10,000 HBAR cryptocurrency transactions per second without compromising on security, a feat that few networks can presently achieve. Despite this, the network maintains an incredibly low fee of around $0.0001 PER HBAR transaction. Finally, the Hedera network achieves finality between 3–5 seconds — a record time. This means that payments and transactions are almost instantaneous.
We’ve established that the Hedera network has some unique and innovative features that make it stand out. Now, let’s compare HBAR to other cryptocurrencies and see how it measures up.
Solana (SOL)
Solana is an open-sourced project that leverages blockchain technology to provide DeFi solutions. The project employs both proof-of-history (PoH) consensus and proof-of-stake (PoS) consensus to provide scalability. Solana is well-known in the DeFi space for its short processing time, but how does it compare to Hedera (HBAR)?
Security: On the security front, Hedera does it better. Considering the fact that HBAR’s staking mechanism requires that transactions are approved when they are processed by nodes that represent more than two-thirds of the total HBAR supply in the network. This ensures maximum security as it’s going to be expensive for fraudsters to buy that much HBAR to manipulate the consensus process. Solana’s Proof of History (PoH) and Proof of Stake (PoS) hybrid model on the other hand, while impressive, has experienced several network outages. This raises the question of how reliable it is.
Predictable Fees: Hedera (HBAR)’s transaction cost maintains a predictably low value that averages $0.0001 per transaction, making it a cost-effective solution for developers and institutions. Solana’s transaction fees range between between $0.003 and $0.030. It’s not as predictable as HBAR’s and certainly not as low.
Algorand (ALGO)
Algorand is a decentralized blockchain-based network that provides a base for decentralized applications. The Algorand network aims to solve the blockchain trilemma — scalability, security, and decentralization. As of 2020, Algorand network claims to handle 1 million transactions per day. How does it measure up to Hedera (HBAR)?
Consensus Mechanism: Algorand uses Proof-of-Stake, while Hedera uses the Hedera Hashgraph. Hedera’s technology offers a faster and fairer consensus when compared to Algorand’s.
Transaction Speed: Currently, Algorand blocks are produced in less than 3 seconds with instant finality. The network can process 10,000 transactions per second.
Cardano (ADA)
Cardano is a blockchain platform built on Ouroboros proof-of-stake consensus protocol. The platform was created to support real-life use cases, systems, and applications. It also has a mission of providing banking services to the unbanked. Cardano (ADA) is faster at processing transactions than cryptocurrencies like Bitcoin and Ethereum. However, when compared to HBAR, how well would it do?
Transaction Finality: As stated above, Hedera’s transaction finality is 3–5 seconds — almost instantaneous. Previously on Cardano, finality is achieved in 24 hours. Currently, though, transaction finality on Cardano takes anywhere between 20 seconds to a few minutes.
Transaction Fees: Cardano has generally low transaction fees because it uses a Proof of Stake consensus mechanism. However, the transaction fee also depends on network usage at any given time. Transaction fees for an average user on Cardano hang around $0.07. Hedera, on the other hand, not only has very low transaction fees, but the transaction fees are constant and predictable.
Conclusion
Hedera (HBAR) stands out in the market thanks to its unique consensus mechanism. The Hedera Hashgraph allows the platform to offer its users unparalleled security, fairness, high transaction speed, and low transaction fees, setting it apart from traditional blockchain-based systems. Because of these features, the platform is a go-to for developers and institutions looking to build real-world applications.
Compared to similar blockchain-based applications, Hedera offers better infrastructure and services while maintaining a high level of decentralization and security..."
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