harmony (CRYPTO: one) It is a somewhat newer blockchain network that is gaining more traction, as more and more crypto developers and investors are seeing the capabilities of the network. The ONE token, which is fueling the network, now has a price of around $0.23 and a market capitalization of nearly $2.5 billion, which is an increase of more than 5200% over the past year, and I see great potential in the future. Here are five things to know about Harmony.
1. Addressing core blockchain concerns
When some of the first cryptocurrencies like Bitcoin It came about, and their goal was to replace fiat currencies and serve as a substitute or alternative to the traditional financial system. They were outside the control of the banks, the government, and the Federal Reserve. Now, that hasn’t exactly happened, or at least it hasn’t happened yet. One of the reasons for this is that it has been difficult for blockchain networks to maintain their core values such as security and decentralization while scaling and being able to handle all transaction volumes that come through a normal financial network.
Harmony believes it can scale while maintaining decentralization and security because its network is backed by slicing, which creates several separate groups of validators and allows them to approve new transactions and blocks simultaneously. Harmony can currently process 2,000 transactions per second (TPS), comparable to VisaOne of the largest payment platforms in the world. In the long term, Harmony believes it could be up to treating 10 million TPS.
But even during expansion, Harmony does not sacrifice security or decentralization. The network uses a distributed randomization generation process to map the nodes and computers that connect to the network and to validate transactions for different fragments. Harmony also maintains a low threshold of single tokens that nodes need to join the network as validators and maintain decentralization.
Harmony believes that the massive scalability of the network, along with decentralization and security, will enable the blockchain to accomplish feats previously unrealistic on other blockchain networks such as creating large decentralized exchanges, large payment rails, and transaction-things. “
2. Energy efficient
The original way in which blockchain networks validate transactions, mine new tokens, and create new blocks was through Proof of Work, where miners see who can solve a crypto puzzle as quickly as possible for a chance to confirm transactions and reap the rewards. New icons. However, the competition for new tokens has become so competitive on certain networks like Bitcoin that mining companies will use huge amounts of computer power to solve puzzles, which is beginning to be seen as a concern for the environment.
Now, a lot of blockchain networks are moving to the Proof of Stake concept, which Harmony has used from the start. Under this process, nodes place existing tokens as collateral for a chance to be randomly picked for transaction validation. A number of validators must verify transactions for the block to be approved. Harmony stands out from other networks because the Proof of Stake consensus mechanism and architecture enables the network to finish blocks in just two seconds.
3. Gas fee reduction
Because of the TPS that Harmony can process and use to validate the Proof of Stake, the network is rarely clogged like Ethereum So they don’t charge high gas fees – they are currently a tiny fraction of a penny per transaction on Harmony. Now, it’s clear that a network like Ethereum sees a lot more demand and transactions than Harmony, but on its website, Harmony says that even if it reaches a point where the entire network is being used and sees very high demand, it can solve the congestion issues simply by adding more cutting.
4. Cross capacity chain
Harmony’s technology has the ability to share data across multiple blockchain networks, whether running a Proof of Stake or Proof of Work, by enabling nodes on other networks to verify transactions. Towards the end of November, Harmony launched a bridge called Horizon, which allows cross-chain interoperability with Ethereum so that assets can be moved between the two networks. This is likely to be a huge advantage for enhancing cross-border payments and facilitating the exchange of cryptocurrencies between each other. Harmony has also built bridges with other chains such as Binance.
5. Huge potential for NFTs
Harmony’s cross-chain capabilities open up some interesting possibilities for non-fungible tokens (NFTs), which are digital art, video and audio files that are secured and can be transferred on the blockchain network. First, with lower gas fees, the network may be more attractive to creators who want to mint NFT cash. Harmony noted that it may be expensive to connect NFTs from one network to another at first, but then the next transactions will be cheap. Harmony said on Twitter It is developing other capabilities such as NFT Lending, NFT Verification and Rationalization.
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