Everything you need to know about Harmony currency and its blockchain

Many cryptocurrencies in the blockchain world are trying to break away from Bitcoin's proof-of-work mechanism and move towards mechanisms that are more environmentally friendly and for miners. They are more economical. Harmony currency is one of these cryptocurrencies that was introduced in 2019.

BingMag.com Everything you need to know about Harmony currency and its blockchain

Many cryptocurrencies in the blockchain world are trying to break away from Bitcoin's proof-of-work mechanism and move towards mechanisms that are more environmentally friendly and for miners. They are more economical. Harmony currency is one of these cryptocurrencies that was introduced in 2019.

Unlike Bitcoin, the Ethereum world is developed on the basis of a consensus proof-of-stake mechanism that depends on a wide group of stakeholders. In this platform, to earn the right to validate transactions and create new coins, the validator uses the assets or stake in the network instead of using very high processing power.

However, trying to create a system Based on proof of stake, it usually faces a problem: one or a group of shareholders can easily conspire and attract capital and abuse the network. This compromises security and decentralization, which are 2 of the 3 main pillars of a successful blockchain, in favor of scalability.

But Harmony has tried to improve by creating a more improved system that puts validators under It is considered to solve this problem.

What is Harmony?

Harmony is a layer one blockchain that was created in 2018 and a year later with the aim of solving the problem of inequality between scalability and security. And the decentralization of blockchains was introduced by Stephen Tse. This network was launched using Binance Launchpad and managed to reach $23 million in capital in May 2019. The total market capitalization of the Harmony currency reached $1.5 billion in March 2022.

This network is compatible with the Ethereum network and the Harmony cryptocurrency, known as the token ONE, is a token that validators can use to multiply and calculate the transaction cost based on it. Blockchain Harmony developers claim that this network can process up to 2,000 transactions per second, and each of these transactions takes an average of 2 seconds to transfer to its destination. It is not bad to know that this amount takes about 10 minutes on average for the Ethereum network. In addition to the transaction time, the Harmony blockchain has also reduced the fee by 1000 times compared to the Ethereum network.

Also, Harmony uses a feature called Horizon, which allows holders from ONE and the Ethereum network with This cross-network feature allows the holder to access both the security of layer 1 blockchain and the efficiency of layer 2 blockchain. Additionally, Harmony is developing a platform to operate in the NFT space.

How does the Harmony Network work?

BingMag.com Everything you need to know about Harmony currency and its blockchain

The Harmony blockchain is divided into 4 networks known as shards, which operate in parallel, but are validated by separate stakeholders; A form of blockchain that is more efficient and has less latency. Harmony calls this mechanism "Proof of Effective Stake".

The assets of Harmony shareholders are in the form of Harmony currency or the ONE token, which is connected to one of the 4 shards. Validators must keep a full copy of the transactions given to the shard, but not a full copy of the entire network. They will be rewarded with newly minted coins and a portion of the transaction fee. Validators are switched between shards after a period known as an epoch to prevent them from becoming too comfortable. Currently, each shard has 250 slots for validators, but scalability may increase this number.

Harmony's clever idea is to have stakeholders randomly connect to each shard to ensure that they coordinate under To prevent the control of the network. Also, Harmony does not approve token storage and penalizes those who store more tokens and encourages those who store less. The result of this policy is faster transactions and lower fees, while maintaining security.

What names work with Harmony?

Bored Ape Yacht Club

If you follow the news of the NFT world, you must have heard of the Bored Ape collection, which includes images of colorful monkeys. This collection of NFTs enables access to a large community. Bored Ape holders can transfer their NFT to DeFi Kingdoms, a play-to-earn game developed on the Harmony Blockchain platform.

  • What are Play-to-Earn games?

Terra

Terra is a popular algorithmic stablecoin on decentralized exchanges. The collaboration between Terra and Harmony allows UST to be placed on Harmony's blockchain platform as 1UST.

What is Harmony's currency or the ONE token?

BingMag.com Everything you need to know about Harmony currency and its blockchain

Harmony, like many other blockchains, has its own cryptocurrency, known as the ONE token, that can be stored, acquired, and even mined. Having harmony currency to its holders It grants management rights so that they can participate in decisions related to the future of the Harmony network.

Like Bitcoin, the Harmony currency has a limited number, which is approximately 12.6 billion tokens, and so far it is close to 9.5 billion. has been multiplied About 15% of ONE tokens are owned by its founding team.

Where to buy Harmony currency?

Harmony currency can be purchased on various exchanges such as Binance, Crypto.com and Huobi Global

The Future of Harmony

Harmony is trying to build its future on the NFT lending system, and while transferring its tokens to Metamask using a Chrome extension, it is trying to Introduce your own money.

Also, the blockchain has created a $300 million fund, known as Harmony Grants, dedicated to further research in the area of proof-of-stake mechanisms. For example, it has established a decentralized independent organization (DAO) whose purpose is to research the security of sensitive data in the blockchain and their anonymous exchange.

Source: Decrypt

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