What is Hedera (HBAR)?

Hedera is a public network for payments, smart contracts and tokens. Its coin is HBAR. Two things set it apart: it does not use a blockchain, and it is governed by a council of large organisations rather than by coin holders or miners.

Where it came from

Hedera launched in September 2019. In February 2020, Google joined its governing council, alongside members such as Boeing, IBM and Tata Communications.

How it works

• Hashgraph, not a blockchain. Lesson 3 explains how a blockchain links blocks in a chain. Hedera uses a different method, called hashgraph, to agree on the order of transactions.
• Proof of stake. Votes in that agreement are weighted by how many HBAR stand behind each node (Lesson 8). Holders can stake their HBAR to a node, and staked HBAR stays under their own control.
• A governing council. A council with 39 seats for term-limited organisations runs nodes, approves changes to Hedera's code, sets network policies and decides how its treasury is spent. Members take part on equal terms.

Supply

• All 50 billion HBAR were created when the network launched.
• No new HBAR are mined or minted.
• HBAR pays for transactions, smart contracts and storage, and rewards nodes.

The market data panel shows how much is in circulation now.

What people use it for

People and companies pay fees in HBAR to use the network, and people hold, stake and trade it.

Risks to know

• Control by a small group. The council approves every change to the network. That is predictable, but it means a few dozen organisations decide what Hedera becomes.
• Price swings. HBAR can fall far and fast, like other coins.

Learn more

Lesson 3 explains blockchains, Lesson 8 covers proof of stake, and Lesson 19 explains how to research who controls a project.