Hedera is a decentralized public network that utilizes a unique consensus mechanism called Hashgraph to provide fast, fair, and secure transactions. It aims to create a trusted, efficient, and sustainable platform for developers to build and deploy decentralized applications (dApps). Hedera’s ecosystem is powered by its native cryptocurrency, HBAR.
History
Hedera was founded in 2017 by Dr. Leemon Baird and Mance Harmon. Dr. Baird is the inventor of the Hashgraph consensus algorithm, which forms the backbone of the Hedera network. The project conducted a successful Initial Coin Offering (ICO) in 2018, raising $124 million. The Hedera mainnet was launched in September 2019, marking the beginning of its journey towards becoming a leading enterprise-grade public network.
What is Hadera?
Hedera describes itself as follows:
“Hedera is a decentralized, open-source, proof-of-stake public ledger that utilizes the leaderless, asynchronous Byzantine Fault Tolerance (aBFT) hashgraph consensus algorithm. It is governed by a collusion-resistant, decentralized council of leading enterprises, universities, and web3 projects from around the world.
Hedera’s performance-optimized Ethereum Virtual Machine (EVM) smart contracts, along with its easy-to-use native tokenization and consensus service APIs, enable developers to create real-time web3 applications and ecosystems that will drive the future of the internet.
Hedera is built differently from other blockchains. It has high throughput with fast finality; low, predictable fees; fair transaction ordering with consensus timestamps; and a robust codebase that ensures scalability and reliability at every layer of its network infrastructure. Hedera is governed responsibly by the world’s leading organizations to ensure that the network is collusion-resistant.”
Tokenomics
Hedera’s native cryptocurrency, HBAR, serves as the fuel for the network. It is used to pay for transaction fees, smart contract execution, and network services. HBAR has a fixed total supply of 50 billion tokens, which are released gradually over time. The token distribution is carefully designed to ensure long-term stability and network security.
Token Utility
HBAR has several key utilities within the Hedera ecosystem. It is used to pay for transaction fees, ensuring that the network remains secure and free from spam transactions. HBAR is also required for executing smart contracts on the Hadera network, enabling developers to create and deploy dApps. Additionally, HBAR can be staked by network participants to contribute to the network’s security and earn rewards in return.
“Hedera is governed responsibly by the world’s leading organizations to ensure that the network is collusion-resistant.
Shariah Opinion
At the current moment, a clear Shariah opinion cannot be offered on HBAR due to a lack of information available on the genuine use case and benefits being provided to the real world beyond just trading on exchanges and DeFi activity that is more reflective of speculation.
Conclusion
Based on and subject to the foregoing information, and for the purposes of this conclusion, we have reserved issuing any Shariah opinion on HBAR.
*Attention is drawn to the term ‘Sharia’ and ‘Sharia compliant’ and its interpretation thereof as expressed in the following link https://shariyah.net/glossary/
