What is Hedera (HBAR)?

By CMC AI
25 September 2025 08:46PM (UTC+0)

TLDR

Hedera (HBAR) is an enterprise-focused distributed ledger platform using hashgraph consensus for high-speed, secure transactions. It combines corporate governance with decentralized infrastructure for real-world applications like payments and tokenization.

  1. Enterprise-grade DLT – Designed for scalability, fairness, and energy efficiency.

  2. Hashgraph tech – Processes 10,000+ transactions/second with 3–5 second finality.

  3. Governed by global giants – Council includes Google, IBM, and Deutsche Telekom.

Deep Dive

1. Purpose & Value Proposition

Hedera aims to solve blockchain’s scalability and efficiency limitations for enterprises. It targets use cases requiring high throughput and low fees, such as:
- Micropayments (e.g., fractional transactions for IoT devices).
- Tokenization of assets like carbon credits and loyalty points.
- Supply chain tracking via immutable audit trails.

Unlike traditional blockchains, Hedera avoids forks and miner centralization, appealing to regulated industries.

2. Technology & Architecture

Hedera uses hashgraph, a DAG-based consensus algorithm, instead of blockchain. Key innovations:
- Gossip Protocol: Nodes share transaction info directly, enabling rapid data propagation.
- Asynchronous Byzantine Fault Tolerance (aBFT): Ensures security even if 1/3 of nodes are malicious.
- Fixed $0.0001 fees: Predictable costs for enterprises.

This architecture supports ~10,000 TPS, far exceeding Ethereum (~30 TPS) and Bitcoin (~7 TPS).

3. Governance & Ecosystem

Hedera is governed by a 39-member council (currently 28), including corporations like LG and universities. The council:
- Votes on protocol upgrades.
- Operates nodes to decentralize the network.
- Ensures compliance-focused development.

The ecosystem includes tools like the Hedera Token Service (for minting tokens) and partnerships with Chainlink for oracle integration.

Conclusion

Hedera is a hybrid platform blending corporate governance with decentralized tech, optimized for enterprise adoption. Its hashgraph backbone and council-led model position it uniquely for regulated industries.

What’s next? Can Hedera balance decentralization with corporate oversight as it scales?

CMC AI can make mistakes. Not financial advice.