Hedera Hashgraph (HBAR token)

If you know le Fantom network, then you have most certainly (but not sure) heard of Hedera Hashgraph (HBAR token).

This year 2021 was the year of the emergence of alternative blockchains to Ethereum and among the new blockchains made available, Fantom is making a lot of talk at the expense of Hedera Hashgraph.

The two projects are often compared because they are very close from a technological point of view. Like many alternatives to Ethereum, the two projects want to solve the famous blockchain trilemma. Basically, they want to offer us faster, cheaper and more secure technology without putting any of the pillars in motion.

We wrote this short article to try to break down the two projects and see which one we should focus on (the most).

This is indeed a question that we can ask ourselves and which is entirely legitimate.

Discussion on Reddit about the difference between Hedera and Fantom

That said, at first glance, and looking at things from a distance, the two technologies are equivalent. What will make the difference is the size of the network, the commitment of the developer community, the protocols, etc.

Overview of Fantom (FTM)

Fantom is a technology focused on smart contracts based on what is called DAG (Directed Acyclic Graph). This makes it faster, more secure and more scalable. The particularity of Fantom is to have designed a new protocol known as Lachesis which makes operations more functional on the network.

(To find out more, read the article on Fantom Network)

Presentation of Hedera (HBAR)

Hedera Hashgraph also has the same power claims as Fantom. Without wanting to repeat things too much, Hedera Hashgraph is also intended to be faster, more secure and more scalable than other blockchains.

The underlying technology is something called Hashgraph. They patented this technology and only Hedera uses it.

That said, many people have criticized the fact that they "patented" the technology when very often, the vast majority of technology is available in open-source. Ethereum has led the way in this direction and seeking not to make the source code open to all is a criticizable element for many people in the crypto community.

Furthermore, the developers of Hedera Hashgraph nevertheless recalled that this technology would be made available in the (more or less near) future.

As we can see in the screenshot above, 3rd generation blockchains prove to be much more powerful than first and second generation technologies.

The difference between Hedera Hashgraph and Fantom and the controversy over the use of technology

As we told you in the introduction, it is very difficult to distinguish between the two technologies. This is all the more difficult as both projects are very recent.

Recall here that the Hedera network is built on the consensus algorithm invented by Dr. Leemon Baird (the co-founder and chief scientist of Hedera). The hashgraph consensus algorithm can process hundreds of thousands of transactions per second (limited to ten thousand tps in beta).

In fact, and to better understand the competition between the two networks, we must understand the controversy between the two…

This is both the basis of rumors on Reddit and other crypto forums…

Some people claim that Fantom copied (stole) Hedera's technology...

Frankly, to be honest, we don't think this is a very important issue...Likewise, even if the rumors are true, you should know that stealing code is not as simple as you think. It's not enough to go to GitHub and do a straight copy and paste to create the fantom network. You have to be very naive to believe that... It requires such enormous work...

And if it really were true (that the Fantom developers copied the Hedera source code), it would take years and colossal work to prove it.

More and more developers are working on the same technology and it can happen that they come across relatively similar results. The history of science has demonstrated this to us a thousand times.

On the other hand, we did our little research and really, these are questions of legislation on which we do not have the framework to carry out a pure and hard analysis. This is beyond us and we think once again that this is not a relevant debate.

If you know more, please let us know.

(For more on the exclusive license issue: https://help.hedera.com/hc/en-us/articles/360006895478-Does-Hedera-have-an-exclusive-license-to-use-the -hashgraph-technology-)

Let’s get back to the main point of the subject 🙂

What goes in the direction of Hedera Hashgprah

For some people, Hedera is superior in the sense that they have developed their own technology on virtual voting. This gives them a sort of technological advantage.
In terms of governance, Hedera is supervised by 39 large companies around the world representing different sectors (including IBM, EDF, Boeing and Google, for example). Decentralization then seems more real and more advanced on Hedera.
Hedera has established numerous partnerships (or are currently being developed) with many solid sectors such as COVID vaccination monitoring (read the article: https://www.cnbc.com/2021/01/19/uk- hospitals-use-blockchain-to-track-coronavirus-vaccine-temperature.html) or even the management and tracking of medical records. The largest international companies including banks are part of the founding team of the network…. This gives a lot of credibility to this technology, especially if we think about the partnerships that they will be able to achieve on and thanks to Hedera.
So, maybe Hedera has rather embarked on long-term projects and that is perhaps what explains why it is less "known" than Fantom.

What goes in the direction of Fantom:

Fantom's own consensus mechanism called Lachesis is very valuable. Thus, Developers can use Lachesis to create peer-to-peer applications without having to create their own network layer. This makes it a definite advantage.
Fantom entered into a partnership to create a central bank digital currency (CBCD) with the in Tajikistan, on September 27, 2021.
The Fantom ecosystem includes an ever-growing ecosystem with partnerships with big names in blockchain and more than 80 dApps currently available. More and more users are using the network for decentralized finance activities. The network became popular very quickly with user adoption steadily increasing…

What to finally choose between HBAR and FTM?

You can imagine that we cannot decide because the two projects can ultimately evolve in radically different ways. Sometimes, all it takes is a simple change or a simple partnership to propel the price of a crypto.

In fact, remember that here we do not give a clear-cut opinion and we have decided on a personal basis to invest in both (yes, when the choice is too difficult, you understand…).

In short, from a strict tokenomics point of view, some may prefer Hedera Hashgraph thinking that HBAR could be more profitable in the long term (with a lower max supply than Fantom). That said, the maximum token supply should be considered after the most important factor which is the supply and demand for the token in question.

When we consider the applications or projects that are being developed on Hedera, it's true that we quickly realize the incredible potential. If large companies like IBM develop projects that would be built on this network (and which would indirectly use the HBAR token), we quickly see how profitable it can be to invest in it (over a long term horizon, the time that these projects are certainly taking shape).

The only thing we can see at this stage is that Fantom is more popular (with the media and users in any case). The Fantom ecosystem is growing and offers very interesting dApps. In this sense, it is as if Fantom had a more "mainstream" development strategy than Hedera which would like to be more "corporate"....We can verify this with the "use cases" and uses of Hedera that will be very useful and requested by companies. This is clearly their targets. Fantom is instead developing partnerships for more pronounced DeFi use.

This is just our opinion, it’s up to you to do your research to go further 😉

Basically, it's up to you to see what you prefer and perhaps we'll conclude like this: Sometimes, you shouldn't try to make too many comparisons and put projects in competition with each other. It is also good to consider certain technologies as being specific to defined sectors and realize that sometimes this does not make sense (even if the two have more or less the same technology).

We, for example, have both 😉

Discover the platform Hedera Hasgraph
Buy and invest in HBAR on Binance
Discover the project Fantom Network (FTM)

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Disclaimer : This article is provided for informational purposes only. This is not financial, legal, tax or investment advice. Always do your own research before investing in a project.

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