Hedera In-depth Report by AI

December 3rd, 2023

Hedera In-depth Report Generated by AI - For further details, please review:

1)What is hedera(HBAR)？

Hedera (HBAR) is a proof-of-stake, layer-1 blockchain known for its high transaction speed and scalability. In 2023, Hedera demonstrated strong performance despite a challenging crypto market, handling 10,000 transactions per second since its launch in 2019. Key developments include adding community-run nodes to increase network capabilities and planning additional shards for greater throughput. Q3 2023 saw a record 99 million daily transactions, primarily through its Hedera Consensus Service, with substantial growth in staking and Total Value Locked (TVL). Hedera's circulating market capitalization grew to $1.7 billion, and its fully diluted market cap reached $2.5 billion. The network actively fosters technological advancements and partnerships, such as integrating the JSON-RPC codebase and launching the mobile game "Legends of the Past" using its token service. HBAR, its native token, serves for network fees, validator delegation, and network security, with plans to introduce staking for permissionless public validators. As of Q3 2023, about 67% of HBAR's total supply was in circulation.

2)Which sector does hedera(HBAR) belong to?

Hedera Hashgraph (HBAR) operates within the rapidly evolving blockchain sector, particularly in decentralized finance (DeFi) and enterprise blockchain applications. This sector is experiencing significant growth, with a projected market increase from USD 17.57 billion in 2023 to USD 469.49 billion by 2030. Innovations in private and trusted networks, as well as in technology such as self-executing contracts, are driving this growth. However, the sector faces challenges like regulatory uncertainties and a lack of skilled personnel. Banks, trade, logistics, and various industries are increasingly adopting blockchain technology, indicating its widespread applicability and potential for future expansion.

3)What is tokenomics of hedera(HBAR) (includes allocation and supply schedule)?

Token Allocation:

Pre-Minted Treasury: 32.41% of HBAR tokens are allocated to the Hedera Pre-Minted Treasury.
Employees: 4.44% is allocated to Hedera employees.
SAFTs, Purchase Agreements: 17.4% is allocated to Simple Agreements for Future Tokens (SAFTs) and other purchase agreements.
Ecosystem Development: 23.99% is allocated for ecosystem development.
Swirlds: 7.96% is allocated to Swirlds, the company that originally engineered and patented the hashgraph technology used by Hedera.
Founders: Another 7.96% is allocated to the founders of Hedera.

Supply Schedule:

The maximum supply of HBAR tokens is capped at 50 billion.
HBAR has an inflationary type emission rate since its genesis.
The initial token launch date was in September 2019.
It's important to note that pre-minted Hedera Treasury tokens are not included in the calculation of the supply schedule above, as these tokens will be allocated based on the governance of the Hedera Treasury.

Detailed Allocation Categories:

Initial Development Costs and Licensing: This includes all HBARs allocated for licensing and deploying the hashgraph technology.
Purchase Agreements: This category encompasses HBARs sold under regulated sales contracts, including SAFTs and Token Purchase Agreements (TPAs).
Network Governance and Operations: This allocation is for compensation to founders, executives, employees, and contractors.
Ecosystem and Open Source Development: This includes HBARs released to the community for the development of the Hedera ecosystem, involving programs like the Community Incentive Program and Developer grants.
Unallocated Supply: This represents the HBARs yet to be given a specific purpose by the Hedera Council.

The allocation and release of HBAR tokens are carefully managed and reported by Hedera, reflecting a structured approach to token distribution and ecosystem development. This structured approach is indicative of Hedera's commitment to the long-term stability and growth of its network and community.

4)What about the team and the investors of hedera(HBAR)?

Hedera Hashgraph (HBAR) is supported by a diverse and influential team, backed by significant funding and investment. The company is funded by 19 investors, including prominent names such as Boeing HorizonX Ventures, Tata Communications, BlacTower Capital, and Vestinwolf Alternatives.

The Board of Directors of Hedera features a range of accomplished individuals from various sectors. Some of the notable members include Tasker Generes, Vice President of Vision & Innovation at ServiceNow; Pradeep Iyer, Founder of Satvatma LLC and representative of Avery Dennison; Brian P. Jeffords, Information Technology Director at Boeing Information Technology; Brett McDowell, President & Chair of Hedera; Monique J. Morrow, President & Co-founder of The Humanized Internet; Shyam Nagarajan, Executive Partner of Web3.0 & Sustainability at IBM Consulting; Ian Putter, Head of the Blockchain Center of Excellence at Standard Bank Group; and Scott Thiel, Founder & Entrepreneur-in-Residence at TOKO by DLA Piper.

The team at Hedera includes professionals with expertise in various domains. Andrew Aitken serves as the Chief Open Source Officer, Salvador Aveldaño is the Finance & Business Intelligence Lead, Kate Ball is the Director of Legal Operations & Senior Counsel, Betsabe Botaitis holds the position of Chief Financial Officer & Treasurer, and Mike Cave is the Director of Technical Programs. Other notable members include Alvaro Escobedo as Junior Financial Controller, Alex Popowycz as Chief Information & Chief Information Security Officer, Nilmini Rubin as Chief Policy Officer, Gregory Schneider as Deputy General Counsel, Tom Sylvester as General Counsel & Secretary, Vanessa Valentine as Manager of Committee Operations, and Brad Wells as Director of Risk & Compliance.

In terms of funding, The HBAR Foundation was announced as an over $2 billion fund launched near the end of 2021 to support the adoption and growth of the Hedera cryptocurrency network. For 2022, the Foundation set a goal to allocate over $500 million to the market in various incentives on the Hedera network. This funding is aimed at facilitating user, developer, and market incentives, distributed across multiple sectors to promote growth and competitive advantages in the rapidly evolving cryptocurrency landscape.

5)What is the development history of hedera(HBAR)?

List all important events and milestones in the development process of hedera(HBAR). 2012-2016: Invention of Hashgraph

2012 – 2014: Dr. Leemon Baird began working on distributed consensus at scale.
2015 – 2016: Development of hashgraph technology and establishment of Swirlds, Inc. by Dr. Baird and Mance Harmon.

2017-2018: Formation of Hedera

Q1 – Q2 2017: Seed investment round for Swirlds and formation of Hedera.
Q3 – Q4 2017: Expansion of the project, including team formation and public unveiling of hashgraph technology.
Q1 2018: Branding as "Hedera," launch event in NYC, and continued development.
Q2 – Q3 2018: Preparation for the launch of Hedera mainnet and minting of hbars.
Q4 2018: Hedera18 developer conference, early access to mainnet, and validation of the hashgraph algorithm's security.

2019: Open Access of Mainnet

Q1 – Q2 2019: Announcement of first Governing Council members and further testing of the network.
Q3 2019: More Governing Council members announced, alpha release of Mirror Node software, and open access to Hedera mainnet (beta).
Q4 2019: Launch of Hedera Boost program.

2020: Launch of Hedera Consensus Service

Q1 2020: Introduction of new Governing Council members and launch of Hedera Consensus Service on mainnet.
Q2 – Q3 2020: More Governing Council members, surpassing Ethereum in daily transactions, beta release of Mirror Node software, and open-source release of network services.
Q4 2020: New Governing Council member, open review of hashgraph platform code, and launch of Hedera Token Service on the previewnet.

2021: Launch of Hedera Token Service

Q1 2021: New Governing Council members and mainnet launch of Hedera Token Service.
Q2 2021: Additional Governing Council members and achievement of one billion mainnet transactions.
Q3 2021: More Governing Council members, commitment to carbon-negative network, and establishment of the HBAR Foundation.
Q4 2021: Announcement of new Governing Council members.

2022: Upgrade of Hedera Smart Contract Service

Q1 2022: Governing Council decision to purchase and open source the hashgraph consensus algorithm, launch of Hedera Smart Contract Service 2.0 on testnet and mainnet.
Q2 2022: Decentralization of the Hedera network and the Hedera22 hackathon.
H2 2022: Open source release of hashgraph platform and introduction of native staking.
H1 2023: New Governing Council members announced

6)What is the progress and future roadmap of hedera(HBAR)?

Prioritized for Development

Smart Contracts: Developing first-class support for Hedera using popular Ethereum Virtual Machine (EVM) tools like Hardhat and Foundry.
Token Service: Enhancements to streamline the process for users to associate tokens with their accounts, catering to both retail and business users.
Decentralization: Introduction of permissioned, community-run mainnet nodes to further decentralize Hedera

Planned for Development

Decentralization: Continued efforts in decentralization through network management tooling improvements.
Mirror Node Enhancements: Smart contract verification in mirror nodes for safer developer and retail experiences, and improvements in open-source mirror node tooling for better tracking and diagnostics of smart contracts

In Development

Codebase Optimization: Modularization of Hedera services to simplify development troubleshooting, deployment, and enhancements.
Decentralization: Enhancements in the operation of Hedera consensus nodes to improve network uptime and resilience.
EVM Archive Node (HIP-584): Enabling querying of the state of smart contracts on Hedera using a mirror node

Other Developments

Developer Tooling & Integrations: Improvements to JSON-RPC for scalability and performance, enhancements to the Hedera developer portal for managing testnet accounts and keys, and an open-source implementation of The Graph for the Hedera network, hosted by Swirlds Labs.
Local Node Improvements: Enhancements to improve application development, testing, and deployment, along with disaster recovery tooling to minimize network downtime.

Completed Projects

Payer Sponsored Account Creation (HIP-542): Supports the auto-creation of Hedera accounts by sending Hedera Token Service (HTS) assets to a 0x Ethereum address.
Smart Contracts: Updates to support the Hyperledger Besu EVM, development of traceability features for smart contract transactions, and updates to align the behavior of Hedera Smart Contracts with industry expectations.

These developments indicate Hedera's commitment to enhancing its platform through continued innovation and decentralization efforts, ensuring robust and efficient services for its users and developers.

8)Bullishness index for hedera(HBAR) from the perspective of token valuation and future potential.

Hedera Hashgraph's Unique Technology: Hedera Hashgraph, using a Directed Acyclic Graph (DAG) instead of a traditional blockchain, promises greater efficiency in terms of transaction speed. This technology positions HBAR as a more efficient alternative, promising all the advantages of blockchain but with higher transaction speed. This technological edge could be a significant factor in its bullishness index.
HBAR's Current Market Performance and Future Predictions:
- As of a recent report, HBAR was trading at around $0.060, with a notable increase in its price over a short period. The market cap stood at approximately $1.778 billion, and the circulating supply was 33.53 billion HBAR.
- Price predictions for HBAR suggest an upward trend over the next months, with potential monthly ROI ranging from 7.6% to 83.1% by December of the following year. This suggests a positive outlook for the token's future valuation.
Technical Analysis and Market Position:
- Hedera's hashgraph technology is acclaimed for its efficiency, security, and stability, crucial factors for its potential as a crypto contender. HBAR's dual role in the ecosystem - powering smart contracts, storage, transactions, and securing the network - adds to its potential.
- HBAR is ranked as the 33rd largest cryptocurrency and is considered a third-generation blockchain, aspiring to serve as a comprehensive transaction platform. The token's performance indicates a strong bullish control in the monthly timeframe, suggesting potential for significant gains.
Long-Term Technical Score: InvestorsObserver gives Hedera a long-term technical score of 44, indicating that HBAR holds a superior long-term technical analysis score than 44% of cryptocurrencies. This score is derived from an analysis of the coin's trading patterns, consistency, volatility, and its relation to long-term averages. The current bearish trend in the long-term trading history of Hedera and its relative position to its 52-week high and low prices contribute to this score.

In summary, Hedera's unique technology, current market performance, future price predictions, and technical analysis all contribute to a cautiously optimistic bullishness index. The technology's efficiency and the potential ROI from its token valuation are significant positives. However, the long-term technical score suggests a need for careful consideration, especially for long-term investors.

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