Hedera is a network for payments, tokens and smart contracts, and HBAR is its currency. The network went live in 2018 and is built on a technology called hashgraph, developed by the computer scientist Leemon Baird, rather than a traditional blockchain.
How does Hedera work?
The network's nodes pick other nodes at random and tell them everything they know, much like gossip spreading between people. From this shared history, they all work out the same order of transactions. That makes Hedera 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. without blocks.
The network 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., and transactions become final within seconds. Fees are set in US dollars and paid in HBAR, with the lowest at USD 0.0001. The total supply is 50 billion HBAR, all created when the network launched. 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. without their HBAR being locked.
The Hedera Council
The network is governed by the Hedera Council, which can have up to 39 companies, universities and institutions, such as Google, IBM and Deutsche Telekom. Each member has one vote and can serve two consecutive three-year terms.
For now, only council members run the network's nodes. Critics see the network as more centralised than Bitcoin or Ethereum, while supporters point out that the council is diverse and no single member is in charge.
What is Hedera used for?
Hedera is designed with businesses in mind and is used, among other things, for 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.. The UK asset manager Aberdeen, for example, has tokenised holdings in one of its money market funds on Hedera.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.