To the seasoned cryptocurrency trader, a cryptocurrency coin can have a variety of purposes, many use cases and a range of potential trading successes based on its fundamental value proposition and utility within its platform. Currently, cryptographic platform coins still remain unclear in definition by US regulators, such as the Security Exchange Commission (SEC). However, the cryptocurrency market has nevertheless created a global sensation with its wildly volatile market swings at the same time inspiring a new generation of investors attracted to the potentially lucrative use cases in all sectors of business and society by these platforms. New to this sphere is the enigmatic hedera hashgraph and its utility token, the hedera hashgraph hbar. In this article, we will explore the fundamentals behind the platform, the role of the utility token and the deeper symbolic meaning of the hbar.
Long before there were computers, software or even cryptocurrencies, a fundamental layer of human knowledge was created through decades of intellectual developments in the fields of mathematics, physics and chemistry. In the development of mathematics, many ideas were explored and several rose to a position that led to some of the most important achievements in human history. Likewise in the fields of chemistry and physics, fundamental truths were unveiled that led to monumental industrial and technological advancements. One of these discoveries was the essence of matter and energy and the elusive role of the quantum wave function. In those discoveries was an insight to a phenomenon so small that no human made instrument could ever resolve or inspect in a direct way. That phenomenon was known as the photon and its wave function was related to the electromagnetic wave.
The electromagnetic wave discoveries of the early 20th century were applied in things as mundane as the microwave oven to the devastatingly explosive two-stage thermonuclear warheads of world war II. A tiny fact to arise from those experiments and technological advancements was the awareness of the concept of a minimally detectable form of electromagnetic radiation that the luminary Max Planck identified as the hbar. This was a description of the smallest of detectable things in the known universe. Moreover, it was something so small that it could only be described by mathematics and vague human conceptual metaphors. In the end, it won Planck the nobel prize and his name became the label for this smallest of things, the planck length, the shortest distance between two peaks in an electromagnetic wave. So, what does this have to do with the hbar, one might ask? Well, it all surrounds the concept of a modern concept known as a micropayment.
Since the early discoveries of the 19th and 20th century, scientists have made steady progress in human knowledge. Their smallest, yet most significant finding, was the awareness that the tiniest things in nature are actually quantifiable and only occur in discrete little packets of photons. It is from this scientific history that the metaphor begins to take shape in regard to our topic of cryptocurrencies and hedera hashgraph.
In the world of crypto, a reference to the hedera hbar is an appeal to the logic of the fundamental physical constant used to describe the smallest unit of energy, the photon. In order to understand the logic of the use, one has to be aware of the many problems in the current financial world that cryptocurrency has been striving to solve. One of the most difficult problems to solve in modern financial systems is the unmet necessity of making small or even “tiny” monetary transactions in commerce in a practical and economically favorable way. Unfortunately, the current monetary system is unable to meet this need due to the overly complex money transmitter requirements and the encumbering fees they demand for use. For an average transaction, a financial transmitter can charge anywhere from 5 to 25 percent for the act of sending money from one location to another. What’s more is that those services are often slow, take several days to remit and reduce the total amount sent by a significant factor. It is within this backdrop that the rise of cryptocurrency has occurred by its sheer necessity for providing a cheap and fast financial service while being able to send micropayments.
According to many distributed ledger technologies or cryptocurrencies, micropayments are one of the most significant use cases. Moreover, the ability of individuals to send and receive small payments, below the value of a US dollar, has a significant chance of creating a new economy. The idea is that some services and products in society are just too small or “tiny” to be transacted through traditional payment systems such as credit cards, checks and cash. This limitation of the basal currency prevents new economic generators in many fields of journalism, music streaming, content creation and many more. However, through the remarkable achievements of the cryptocurrency revolution, a newcomer, hedera hashgraph has debuted a solution to this global problem.
Hashgraph is a distributed ledger technology that uses a network of computers to generate a global consensus, or united opinion about the state of every individual’s account in a financial system in a fair, fast and efficient manner. The fundamental unit of transaction is the hbar, a new kind of electronic currency that will finally meet the need for a “tiny” financial payment in the burgeoning economy of micropayments. It is at this point that the concept of the hbar is finally united with the scientific principle it was named after. Since the photon is the smallest particle in the known universe, and the hbar its reduced constant, or value, is it not appropriate that a “tiny” payment made be similar in spirit to this miniscule division of value. Hedera Hashgraph thinks so. They believe that the ability to use hbars in micropayments could stimulate an entirely new economy of financial transaction between peers, businesses and even major financial institutions in a fair, fast and incorruptible system.
The hbar may become one of the greatest fintech breakthroughs of the past two centuries, toppling the current centralized monetary policies that many believe are corrupted and require complete overhaul to prevent continued deceit and collusion amongst institutions. The hbar represents the ‘tiniest’ of value transactions, but if adopted widely enough, it could become the new global reserve currency that even rivals the US dollar. In the process, the hedera hbar could usher in a worldwide change in value, from traditional to high-tech financial solutions all on a technological backbone of distributed ledger technology. We should thank Max Planck for his amazing discovery of the quantum realm and his development of the most tiny of phenomena in the photon. This fact of science has now become a clear metaphor in computer scientific cryptography in the hbar and is something that could create a global market of micropayment value that revolutionizes the current dilapidated financial system.