Is Hedera Hashgraph A Good Investment?

Introduction

Hedera Hashgraph is a public network that allows individuals and businesses to create powerful decentralized applications (DApps). Hedera is the only public ledger that uses hashgraph consensus, which is a faster, more secure alternative to blockchain consensus mechanisms. Hashgraph works efficiently to verify transactions while ensuring the highest standard of security to prevent malicious attacks. Hashgraph achieves high throughput with 10,000+ cryptocurrency transactions per second today and low-latency finality in seconds from its innovative gossip about gossip protocol and virtual voting. Once consensus is reached, the transaction is immutable and available on the public ledger for everyone to transparently see.

The HBAR token plays two roles within the Hedera public network. First, it acts as the fuel to power Hedera services, such as smart contracts, file storage, and regular transactions. Second, it's used to help secure the network since HBAR users can stake their tokens to assist with maintaining the integrity of the platform.

Hedera is not Open Source; instead, it is Open Review, which means that the code is available only for reviewing, compiling, and testing, not for other use. The developers claim that being Open Review is to protect against any possible forks of Hedera Hashgraph.

How does Hedera Hashgraph Work?

As mentioned before, Hedera Hashgraph does not use Blockchain technology. Instead, it utilizes another distributed ledger technology (DLT) called Directed Acyclic Graph (DAG). DAG provides all the network nodes with the possibility to freely share information. The action of sending information between nodes is called gossiping, which is the basis of the Hashgraph consensus algorithm. The same as gossiping in real life, this information travels fast and makes it possible for all the nodes on the network to achieve consensus about a transaction in approximately three to five seconds. By using this unique structure, Hedera Hashgraph is reportedly able to process 10k transactions per second.

DLT has the potential to disrupt and transform existing markets in multiple industries. However, Hedera Hashgraph's team believes that there are five fundamental obstacles to overcome before distributed ledgers can be widely accepted and adopted by enterprises. These obstacles are performance, security, governance, stability, and regulatory compliance.

A council of leading global enterprises across multiple industries and geographies governs the Hedera network. The Hedera team claims that its vision is to reach a trusted and secure cyberspace without the need for centralized parties with inordinate influence. Hedera's licensing and governance model protects users by eliminating the risk of forking, protecting the integrity of the codebase, and providing open access to review the underlying software code. Platform governance is decentralized through the Hedera Governing Council, which will have a term-limited, rotating set of governing members with equal voting rights over critical decisions relating to the platform.

Financial Analysis

HBAR, the Hedera's token, provided its investors with an 893% Return On Investment (ROI) over the last year, which is almost three times its similar project's ROI. However, HBAR underperformed compared to the top 1500 projects in the market that saw an average ROI of 3,372%. Moreover, although HBAR's one-month ROI was 38% positive, it could be much more if the last week's ROI was a number better than 23% negative. You can have Free access to our report here.

As a project starts to get famous, it would be more likely to see it flourishing. Our data show that the number of HBAR's Twitter account followers went up by 69% over the past five months, leading to 140k followers on September 21, 2021. Although its Reddit subscribers also saw an increasing trend over the same period, with 89% growth, HBAR's Telegram channel users remained constant. You can find our full popularity report for HBAR here.

With approximately $3.2 billion, HBAR is ranked 50 among all projects in the market in terms of market capitalization. Its ranking has been fluctuating around 55 over the last five months, with a peak of 40 on September 16, 2021. On the other hand, its price followed almost a U-Shaped from late April to mid-September, reaching its highest value on September 16 with $0.504. Then, there was a significant drop in a very short time, leading to the price of $0.33 on September 21. In addition, HBAR's liquidity score is 65% above the market's average score, making it easier to sell in bear markets. Our full report can be found here.

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