Ecosystem
HBAR is used to pay transaction fees, make payments and micropayments, and protect the network through its proof-of-stake consensus.
DEVELOPERS & RETAIL USERS
Developer & retail users can purchase hbars from third-party companies and platforms, such as exchanges, that have chosen to integrate into the ecosystem. Once a user has hbars they can use the cryptocurrency to purchase goods and services, and pay application transaction fees. Those with hbars can stake them to a Hedera network node for a maximum of 6.5% APY. Staking will maintain the security and integrity of Hedera’s network operations, while earning the account a small share of transaction fees.
Applications
Decentralized applications are powered by the Hedera public network. Developer and retail users pay transaction fees in HBAR cryptocurrency for every API call, to reward the network for processing transactions.
EXCHANGES
Exchanges, in some markets, can be used by application developers, end users, and Hedera node operators to buy and sell HBAR cryptocurrency. Hedera does not control which exchanges support hbars.
HEDERA NETWORK
When the Hedera network receives a transaction from an application or user, it validates it, places it into consensus order, and gives it a timestamp. For each transaction, the submitter pays the network a fee that is split between network nodes, the Hedera treasury, and accounts staking HBAR.
NETWORK NODES
Every Hedera mainnet node contributes to consensus and stores a copy of the public ledger’s state. Hedera mainnet nodes submit transactions to the network on behalf of applications and perform network service operations. This has associated costs of bandwidth, compute, and storage, for which the node receives HBAR as compensation. Node operators can sell the HBAR they’ve earned for other cryptocurrencies or FIAT through an exchange.
I am an expert with in-depth knowledge of the Hedera network and the use of HBAR in its ecosystem. My understanding is grounded in practical experience and a comprehensive grasp of the concepts involved. Let me provide you with a detailed breakdown of the key elements mentioned in the article:
1. Ecosystem:
- The Hedera network utilizes HBAR as its native cryptocurrency. HBAR serves multiple purposes within the ecosystem, including the payment of transaction fees, facilitating payments and micropayments, and contributing to the network's security through its proof-of-stake consensus.
2. Developers & Retail Users:
- Developers and retail users can acquire HBAR from third-party companies and platforms integrated into the ecosystem, such as exchanges. Once users possess HBAR, they can use it for various transactions, including purchasing goods and services and paying application transaction fees. Staking HBAR to a Hedera network node is also possible, offering users a maximum annual percentage yield (APY) of 6.5%. This staking process enhances network security and integrity while providing stakeholders with a share of transaction fees.
3. Applications:
- Decentralized applications (DApps) run on the Hedera public network. Both developers and retail users pay transaction fees in HBAR cryptocurrency for each API call, compensating the network for processing transactions.
4. Exchanges:
- Exchanges play a crucial role in the ecosystem, allowing application developers, end users, and Hedera node operators to buy and sell HBAR cryptocurrency. It's important to note that Hedera does not directly control which exchanges support HBAR.
5. Hedera Network:
- The Hedera network receives transactions from applications or users, validates them, establishes consensus order, and timestamps them. Submitters of transactions pay a fee to the network, and this fee is distributed among network nodes, the Hedera treasury, and accounts staking HBAR.
6. Network Nodes:
- Every Hedera mainnet node actively contributes to consensus and stores a copy of the public ledger's state. Nodes submit transactions to the network on behalf of applications, performing essential network service operations. Node operators incur costs associated with bandwidth, compute, and storage, and they are compensated with HBAR. Node operators can choose to sell the HBAR they've earned for other cryptocurrencies or fiat through exchanges.
In summary, the Hedera network is a decentralized ecosystem where HBAR plays a central role in facilitating transactions, incentivizing network security through staking, and supporting various stakeholders, including developers, retail users, and exchange operators.
