A Blockchain is a shared digital ledger that facilitates the process of recording transactions and tracking assets within a network. In this distributed digital ledger, where all participants have access to the ledger and its immutable record of transactions. The transactions get recorded only once thus preventing the risk of duplicacy. The transactions show the movement of assets which can be tangible or intangible. As a result, a chain of data is formed in the form of blocks as the asset moves. The blocks get added with each movement and it keeps strengthening the blockchain. When the blockchain becomes strong, it prevents all the tampering forces and reduces the possibilities of duplicacy.
What is Harmony (ONE)?
In May 2019, Harmony (ONE) was launched as a part of Binance Launchpad’s initial exchange offering (IEO). Harmony is considered as the bridge between scalability and decentralization efforts. It is an open blockchain and is considered to be the layer-2 solution i.e. built on top of the original blockchain coding. It runs on the Ethereum blockchain which is a layer-1 network with promising high performance.
Harmony started to operate as a company in 2018 before the IEO. The platform raised $18 million in April 2019 from multiple investors such as Silicon Valley’s Consensus Capital, Hong Kong’s Lemniscap VC, and others. The investors also bought $2.8 billion worth of companies token ONE, while leaving $12.6 billion worth of tokens for pre-mining. In addition, Harmony provides a variety of business modules to its investors. The investors focus on decentralized marketplaces, supply chain monitoring, data sharing, ad exchange, gaming zones, credit rating systems, and much more.
Harmony has been built with a mission of “decentralization” in mind. It strongly emphasizes data sharing, constructing fungible tokens, and building a huge non-fungible asset marketplace. Moreover, Harmony assures to give high throughput with two “low” which are lag in processing and cost.
The ONE is a native token/cryptocurrency which is utilized as a stake in the Harmony Consensus model. The holders are rewarded with the block reward for running the platform smoothly. The Harmony uses ONE token for all transactions such as mining rewards, gas fees, transaction fees, and voting on its platform.
How does Harmony (ONE) functions?
Harmony is an open and fast blockchain, running on the featured mainnet of Ethereum Network with 2-second transaction finality and 1,000 times lower transaction fees. It means a block adds to its blockchain within 2 seconds thus consuming less time in processing. In the same way, Bitcoin blockchain takes 10 minutes and Ethereum Blockchain takes 10-14 seconds which results in very high latency. Also, both the blockchains incur high gas fees to the user during any kind of transaction.
As a consequence, more altcoins are constructing scaling solutions to come over this issue. In respect to this, Harmony has collaborated with Ethereum to run the case, and uses a solution called ‘sharding’. Sharding is a proven solution to scale blockchains without compromising security and decentralization. Sharding is a process to split the database into smaller sub-segments called ‘shards‘. This random state of sharding allows instantaneous transactions while preventing network clogging.
Moreover, the random state of sharding is a unique technique that uses an adaptive proof-of-stake (PoS) consensus mechanism. Also, to accomplish high transaction speed, Harmony uses the Fast Byzantine Fault Tolerance (FBFT) protocol. With the help of this protocol, 250 or more nodes ‘arrive at a consensus’ within 2 seconds. Thus speeding up the complete process and system efficiency parallelly.
Why Harmony is pulling more audience?
Harmony focus on decentralization and security. Harmony deals with some of the major problems of blockchain technology. It is not only energy efficient but also has cross-chain capabilities and offers lower gas fees. As harmony uses the method of ‘sharding‘ to reach scalability while maintaining the decentralization and security in the system. It divides the validators into groups and allows them to validate the transactions & new blocks steadily. It can process 2,000 transactions per second (TPS) and has a goal to reach 10 million TPS in the future.
Unlike Bitcoin and Ethereum, Harmony is more energy-efficient. Harmony works on Proof-of-Stake (PoS) consensus mechanism since the very beginning. As a result with many participants, nodes put their stakes as security in the process so that system can select randomly to validate the transaction. Thus Harmony stays ahead in the race with a proof-of-participants mechanism and network architecture to complete the block in 2 seconds. Because of high TPS and Proof-of-stake validation, it doesn’t charge high gas fees.
Also, Harmony is proud to introduce its cross-chain capabilities. It allows exchanging of assets between two networks. This step has revolutionized cross-border payment and crypto exchanging. This also means that nodes from a different blockchain can validate a transaction on the Harmony blockchain. Thus, improving the transaction speed and completing the blockchain faster. Currently, Harmony bridges for Ethereum and Binance Smart Chains and secures tens of millions of cross-chain assets.
The network system has a high potential for the NFT marketplace. Because of layer 2 programming, Harmony Blockchain provides a speedy NFT transaction. As the Ethereum Blockchain enables smart contracts, it presents to be the best place for exchanging NFTs. Recently, Harmony has announced its newest project for lending NFTs and NFT verification.
Harmony is determined to provide a secure and scalable networking platform to the users and the validators as well. The platform delivers well in maintaining low gas fees and transaction costs. While all the focus is on decentralization, it has never failed is astonishing the market till now. Currently, Harmony (ONE) token is trading at $0.184 with a market capitalization of $2.48 billion.