Key takeaways
- Hedera is a network for payments, tokens and smart contracts, with low fees set in US dollars. Its currency is called HBAR.
- The network isn't built on a traditional blockchain but on hashgraph, a technology developed by Leemon Baird. Transactions become final within seconds.
- A council of up to 39 companies and institutions, including Google and IBM, governs the network and runs its nodes.
- The total supply is 50 billion HBAR, all of which were created when the network launched in 2018.
Contents
Hedera is a network anyone can use to send payments, issue tokens and run smart contractsSmart contractA program that runs on a blockchain and automatically carries out what it was written to do once certain conditions are met., with low fees set in US dollars. Its currency is called HBAR, and a council of companies and institutions, including Google and IBM, governs the network.
Hedera isn't a traditional BlockchainBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing.. It is built on a technology called hashgraph and designed with businesses in mind: speed, predictable costs and clear governance.
Who is behind Hedera?
The computer scientist Leemon Baird developed hashgraph, and its whitepaper was published on 31 May 2016. He founded the company Swirlds with Mance Harmon, and together they founded Hedera. The network was announced in March 2018, went live on 24 August 2018 and opened to everyone on 16 September 2019.
The network is governed by the Hedera Council. Up to 39 companies, universities and institutions from around the world can sit on it, and each member has one vote. Members can serve two consecutive three-year terms, so the group keeps changing. In October 2026 the council had 33 members, including Google, IBM, Deutsche Telekom, Dell and LG.
In 2022 the council bought the intellectual property rights to hashgraph, and the network's code is now open sourceOpen sourceSoftware whose source code is open to everyone, so anyone may read it, use it, change it and share it.. In 2024 Hedera handed all of its code to the Linux Foundation Decentralized Trust, where it is developed further under the name Hiero.
What is Hedera used for?
- Business use. Fees are set in US dollars, with the lowest at USD 0.0001, so businesses know in advance what a transaction will cost. With the Hedera Consensus Service, they can also record events in the correct order, with the network's timestamp.
- Tokenisation. The Hedera Token Service lets anyone create tokens directly on the network, without writing a smart contract. The UK asset manager Aberdeen, for example, has tokenised holdings in one of its money market funds on Hedera, with the help of the UK exchange Archax. Aberdeen and Lloyds Banking Group then used such tokens, along with tokenised UK government bonds, as CollateralCollateralAn asset pledged as security for a loan. In DeFi, the collateral usually has to be worth more than the loan. in foreign exchange trades. This is called Tokenisation (RWA)Tokenisation (RWA)When an asset outside the blockchain, such as a government bond, gold or property, is issued as a token that can be held and sent on a blockchain., and you can read more in What is tokenisation?
- Smart contracts. Hedera can also run smart contracts and host decentralised apps.
How does Hedera work?
Hashgraph instead of blocks
In a traditional blockchain, transactions are grouped into blocksBlockA batch of transactions added to a blockchain in one go, together with a reference to the block before it. that line up one after another. In hashgraph, nodes pick other nodes at random and tell them everything they know, much like gossip spreading between people. Every exchange is recorded, and together the records form a history of who told whom what, and when.
From this history, every NodeNodeA computer that runs a crypto network's software, keeps a copy of the blockchain and checks that new transactions and blocks follow the rules. can work out the same order of transactions without extra rounds of voting messages. Each transaction gets a timestamp that is the median of the times at which the nodes received it. A single node with a wrong clock or bad intentions can't decide the order.
Security and staking
Hedera is secured by proof of stakeProof of stakeA consensus method where crypto is locked up as a stake for the right to create blocks, and anyone who cheats can lose part of that stake.. Each node's weight depends on how much HBAR is staked to it. The network is designed to work correctly as long as anyone trying to cheat controls less than a third of the staked HBAR.
HBAR holders can take part in StakingStakingLocking up crypto on a proof-of-stake network to help confirm transactions, in return for rewards paid in the same crypto. by linking their account to a node. The HBAR isn't locked and can be used at any time. Hedera doesn't use SlashingSlashingA penalty on proof-of-stake networks. A validator that breaks the rules loses part of its stake and is removed from the network., penalties where part of the stake is taken away, either.
Speed and fees
According to Hedera, transactions become final in under 3 seconds and can't be reversed. The fee is set in dollars and converted into HBAR at the time of each transaction. It works like a stamp with a fixed price: the price doesn't change when the HBAR exchange rate moves.
Supply
The total supply is 50 billion HBAR, all of which were created when the network launched in 2018. It can only be changed with the unanimous consent of every Hedera Council member. Part of the supply is still held in Hedera's treasury and is released gradually. According to the council's report for October 2026, almost 88% of the total supplyTotal supplyHow many units of a cryptocurrency already exist, whether in circulation or still locked, minus any that have been destroyed. has been released.
What are the risks?
- The council has a lot of power. For now, only Hedera Council members run the network's nodes, and the council approves upgrades. Critics say this makes the network more centralised than, for example, Bitcoin or Ethereum, where anyone can run a node. Supporters reply that the council is diverse, no single member is in charge and members serve limited terms. Read more about DecentralisationDecentralisationWhen power and responsibility are spread across many participants, instead of one bank, company or government controlling a system..
- Competition. Hedera competes with Ethereum and other networks for business use and tokenisation. Business use of the network also doesn't automatically translate into demand for HBAR.
- Price swings. The price of HBAR swingsVolatilityHow much and how quickly the price of an asset moves up and down. a lot, as with other cryptocurrencies.
HBAR at Myntkaup
At Myntkaup you can buy, sell and hold HBAR. You can also deposit and withdraw it directly on the Hedera network, HBAR's native network.
Always choose the Hedera network when you send HBAR, because a transfer on the wrong networkBlockchain networkThe blockchain a cryptocurrency or token is recorded and sent on, such as the Bitcoin network or the Ethereum network. can be lost. Some crypto exchanges also ask for a memo with the transfer. Read more in How to send crypto to another wallet.
You can see the price of HBAR on the HBAR price page.
Frequently asked questions
Is Hedera a blockchain?
Not in the traditional sense, because transactions aren't grouped into blocks. But Hedera is a distributed ledgerDistributed ledgerA ledger that many computers hold at the same time and keep in sync under shared rules, with no single party holding the master copy. like a blockchain, and it does the same job: keeping a shared record of every transaction that no single party can alter.
Who controls Hedera?
The Hedera Council. Each member has one vote, and most decisions are taken by majority. Swirlds, the company that developed hashgraph, has a permanent seat on the council but no other special rights.
Closing thoughts
Hedera is a network for payments, tokens and smart contracts, built on hashgraph rather than a traditional blockchain. Many people value its speed, its fixed fees and the well-known companies behind it, while critics think the council has too much power.
Either way, the price of HBAR swings a lot. Learn about the risks before you buy.
