Hedera (HBAR): A Look at Its Blockchain Technology
May 21, 2025
Hedera is a public distributed ledger platform known for its speed, low fees, and unique use of Hashgraph—a consensus mechanism that differs from traditional blockchains. Its native token, HBAR, powers network services like transactions, smart contracts, and data storage. In this article, we explore what makes Hedera different, how it works, and its potential use cases.
What Is Hedera?
Hedera is a decentralised public network that enables developers to build secure, fair, and fast applications. Unlike conventional blockchains, Hedera uses a data structure called Hashgraph, which offers high throughput and strong security guarantees without relying on energy-intensive mining.
HBAR is the platform’s native utility token used for transaction fees, staking, and securing the network.
Public, decentralised distributed ledger
Built on Hashgraph rather than traditional blockchain
Designed for enterprise-grade applications
HBAR used for payments, governance, and network services
Governed by a global council of leading organisations
What Is Hashgraph and How Is It Different?
Hashgraph is a consensus algorithm that records events through a directed acyclic graph (DAG), allowing nodes to reach agreement quickly and fairly. It’s not a blockchain, but it achieves similar goals—faster.
Unlike traditional blockchains that rely on blocks and miners, Hashgraph uses “gossip about gossip” and virtual voting for consensus.
Not block-based: no miners or proof-of-work
Asynchronous Byzantine Fault Tolerant (aBFT) consensus
High transaction speed (up to 10,000+ TPS)
Finality in seconds, not minutes
Energy-efficient and environmentally friendly
Key Advantages of Hedera
Hedera’s technology makes it suitable for enterprise, government, and retail use cases where speed, security, and fairness are essential.
Its unique governance model also reduces risks of centralisation or manipulation.
Low, fixed transaction fees
Fast and predictable finality
Real-time transaction ordering
Open access with permissioned governance
Use-case flexibility: DeFi, identity, supply chain, CBDCs
What Is HBAR Used For?
HBAR is the fuel of the Hedera network. It’s used to pay for transaction fees, run smart contracts, and store data. It also plays a role in staking and network security.
Enterprises and developers use HBAR to interact with Hedera’s services through APIs.
Pay for file storage and transactions
Run and interact with smart contracts
Stake for network protection and rewards
Participate in on-chain governance
Build scalable applications using SDKs
Conclusion
Hedera (HBAR) stands out in the Web3 space due to its use of Hashgraph, offering a faster and more energy-efficient alternative to traditional blockchain systems. Its enterprise-ready design and unique consensus mechanism make it a promising platform for real-world adoption.
Now that you understand Hedera’s technology, consider exploring how it could power the next generation of decentralised applications.
Start your SAFE cryptocurrency journey now
Fast and secure deposits and withdrawals, OSL safeguards every transaction !
