Blockchain Investor Analysis

Hedera Hashgraph

HBAR
Current Price $0.03 (-1.78%)
Hedera Hashgraph is an enterprise-grade distributed ledger network that enables businesses to create scalable applications. The HBAR token is a utility token that is required the interact with the network.

Our Rating:

Market

Problem that it solves

Hedera Hashgraph sets out to solve the most pressing issues facing the development of decentralized applications: performance, security, governance, stability, and regulatory compliance.

Customers

Customers for Hedera will consist of businesses looking to build decentralized apps. The number of companies who can take advantage of the Hedera platform is limited to say the least. The DApp space must develop further for Hedera to have a sizable target market.

Value creation

The HBAR token is a classic utility token required to develop DApps. Outside of the Hedera ecosystem it has little to no value.

Market structure

The DApp market space, a sector thought to have serious potential, has underperformed to this point. The general public has yet to see a mainstream decentralized app in practice, so the concept is still largely in a prototype phase.

Market size

The potential market size of the development of decentralized applications is far beyond $100 million.

Regulatory risks

As a utility token, HBAR faces less regulatory risk as most digital assets.

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Competitive Advantage

Technology/blockchain platform

Hedera Hashgraph is an entirely new network that is yet to stand the test of time.

Lead time advantage

Essentially, Hedera Hashgraph is a smart contract platform and thus, has little to now lead time advantage since it was launched in 2019.

Contacts and networks

Hedera Hashgraph has a team composed of experienced professionals but is lacking high-profile 'crypto' personalities.

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Management Team

Entrepreneurial Team

Hedera Hashgraph boasts a large team of experienced professionals that can boast successes.

Industry/technical experience

Members of the Hedera Hashgraph team have vast experiences in the corporate world. However, the team member's time spent in the blockchain industry has been limited.

Integrity

Hedera Hashgraph's team has so far come across as honest and transparent.

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Token Mechanics

Token required

For all intents and purposes, HBAR functions as a basic utility token. It's the main form of transaction and operates at an impressive 10,000 transaction per second, settling network fees and paying nodes will be its most common use case. Furthermore, HBAR will be used to secure Hedera's proof-of-stake network.

Value added

The HBAR token does not provide immense value to the network other than allowing it to run as efficiently as possible with a native token. HBAR checks all the required boxes for a utility token, but fails to add value beyond that level.

Decentralized

The lack of decentralization remains the constant thorn in Hedera's side. The founders believed that strong governance rules were necessary in order to scale the project, so the team at Hedera implemented a Governing Council consisting of 39 different organizations and enterprises.

Token supply

The total supply of the HBAR token is capped at 50 billion and Hedera Hashgraph plans to release the tokens over the next 15 years into the ecosystem.

Public exchange

Interested parties can find HBAR on several exchanges, including Binance, Bittrex, and OKEx.

MVP

Hedera launched its mainnet in September 2019.

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User Adoption

Technical difficulty

Hedera Hashgraph wants to launch a revolutionary platform for blockchain companies to build their decentralized apps, and the innovation required means that the project is not easy to comprehend for the average user.

Halo Effect

Hedera hit the jackpot in early 2020 when they partnered with Google Cloud for the foreseeable future. Google wants to make ledger data available for analytics and felt that Hedera had some of the most innovative distributed ledger technology.

Buzz

The buzz surrounding Hedera was minimal until the Google partnership. Since then, the blockchain venture has garnered more attention.

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Overall Score

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Blockchain Investor Analysis

Hedera Hashgraph is a well-funded distributed ledger venture that aims to become one of the go-to platforms for the development of decentralized applications. Despite its innovative technology that enables 10,000 transaction per second, the venture is miles behind Ethereum in terms of adoption. Having said that, its ties to Google and its team's connections in the corporate world could see the project, and thus its token, performing well in the future.

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