Everything you need to know about Hathor NetworkOne of the newest competitors in the field of crypto is Hathor(HTR). It is a blockchain-based proof-of-work digital platform specifically designed for light financial contracts and transactions. Since its introduction in the year 2020, it has been the subject of attention due to its innovative and original structure. Hathor Network has put forward small value propositions to solve the issues of scalability and maintenance of decentralization, both of which are commonplace in distributed ledger systems like the ones for Bitcoin or Etheruem.
What is the reason why something similar to Hathor necessary?
Within a short time after its launch bitcoin’s blockchain was regarded by the business community as a breakthrough technology to meet businesses’ needs. However, while examining it for real-world applications, the bitcoin’s initial design was found to be limited in both capacity and application. As transaction volumes increase on the bitcoin blockchain, it begins to face issues on several levels including storage, bandwidth on the network decreases as well as the consumption of computer power and power to prove of work significantly increases. Mining is restricted to a handful of sophisticated miners. The value of bitcoin decreases gradually. Another issue that is common is excessive transaction costs.
The structure of the Hathor Network overcome these kinds of limitations? If yes, what exactly is it that it does? What are the unique features that aren’t found in other popular blockchains?
This article provides a deep-dive into each aspect of Hathor with a particular focus on the analysis of its comparison with other blockchains that are popular.
What is Hathor Network?
Simply put, Hathor can be described as a user-friendly and scalable distributed ledger that can be used to facilitate simple financial transactions and contracts. It also functions as an open platform for consensus, but its design is unique as it is a hybrid platform that was created by mixing Directed Acyclic Graph (DAG) and blockchain technology. In essence, it’s an electronic blockchain within an DAG and both are interconnected. When the volume of transactions is minimal and the blockchain is secure, it will be able to protect while when the amount is increased, DAG takes over.
This hybrid architecture provides the ideal environment for a variety of scenarios, especially when the need for high-scalability is required. What is the way that DAG and Blockchain when combined can improve the scalability and performance of Hathor’s network Hathor network is to be explored in the near future. Prior to that, let us define some of the characteristics of Hathor that differentiate it from other platforms.
What is it that makes Hathor different?
The creators of Hathor have described it as a “Scalable distributed ledger designed for real-world use. It is created to address many of the issues that are prevalent with current mainstream blockchains like:
- The high cost of transactions for transactions in the Bitcoin Blockchain is one of the most discussed problems. However, transactions made through Hathor are free. Hathor network are free that means that the cryptocurrency is able to be traded and transferred without having to pay any charges.
- Hathor is far more flexible in comparison to Bitcoin or Etherum network, meaning that even when the volume of transactions increase the security and efficiency of the system won’t become affected. It doesn’t mean that the it doesn’t have a central coordinator at any given point in time. Hathor Network is totally uncentralized ledger, and yet it is able to provide long-term security as transactions increase in volume.
- The Hathor network permits merged mining using Bitcoin as well as Litecoin. This means that Bitcoin and Litecoin mining users are able to be part of the mining process of HTR and, by doing so they won’t lose profits made through Bitcoin as well as Litecoin chains. In addition, miners are offered incentives through HTR tokens for free of cost. The miners feel safe and encourages them to work to earn HTR cryptocurrency.
- In just a couple of clicks, anyone can make customized tokens (digital tokens) via the Hathor Network. The official website states that 13-year-olds can make an account to play with.
- The Hathor network is a part of ‘atomic swaps. The advantage for this function is that it permits distinct tokens to be exchanged within the same transaction which improves the efficiency of the network.
- Another significant aspect of Hathor worth mentioning includes the Nano Contract. Nano Contracts are in development currently. They are similar to smart contracts but with smaller computation power and costs. Therefore, it is an alternative to this smart contract. In addition, by incorporating built-in automatic swaps, nano-contracts are designed to reduce transaction costs.
- As mentioned previously the design for Hathor’s architecture Hathor network is unique and distinct. It is constructed by intertwining both blockchains along with DAG technologies to address the issues of scaling and maintenance of decentralization that are prevalent on other ledger distributed networks. According to various sources, there isn’t any other publically-known project that is currently working on this sort of solution.
Here defining how the novel architecture of Hathor functions and achieves high scalability.
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