Hedera (HBAR): how it works, supply and reviews
Layer 1 blockchain
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Key facts
- Ticker
- HBAR
- Category
- Layer 1 blockchain
- Network
- own blockchain
- Mining algorithm
- Directed Acyclic Graph (DAG)
- Official site
- hedera.com
- Whitepaper
- hedera.com/wp-content/uploads/2025/12/hh_whitepaper.pdf
- Source code
- github.com/hashgraph
Data: CoinGecko, 2026-10-27. Only projects that still trade with meaningful volume are listed.
What is Hedera
Hedera is a public proof-of-stake distributed ledger that uses hashgraph consensus instead of a chain of blocks. It offers smart contracts (EVM), native token issuance and a consensus (time-stamping) service, and its native cryptocurrency HBAR pays network fees.
Network and consensus
| Parameter | Details |
|---|---|
| Type | Public distributed ledger using a directed acyclic graph (DAG) rather than a blockchain |
| Consensus | Hashgraph (gossip about gossip and virtual voting) with proof-of-stake weighting; asynchronous Byzantine fault tolerant |
| Finality | About 3–5 seconds |
| Smart contracts | Yes, Solidity on an EVM based on Besu |
| Launched | Mainnet open access on 16 September 2019 |
| Node operators | Consensus nodes are run by members of the Hedera Council |
Supply and issuance
| Parameter | Details |
|---|---|
| Maximum supply | Fixed at 50 billion HBAR |
| Initial distribution | Released from the Hedera treasury over a 15-year distribution schedule that began at open access in 2019 |
| Staking rewards | Paid from the staking reward account (0.0.800), funded mainly by a daily share of collected fees; no lock-up or slashing |
What HBAR is used for
- Paying network fees, which are priced in US dollars and paid in HBAR
- Staking to consensus nodes to add to their consensus weight and earn rewards
- Access to Hedera services such as smart contracts, tokens and the consensus service
Who develops and governs Hedera
- Governance
- Hedera Council, a group of up to 39 organisations with equal voting rights and term limits
- Legal entity
- Council membership is governed by the Hedera Council LLC Agreement
- Founders
- Dr. Leemon Baird (inventor of hashgraph) and Mance Harmon
- Open source
- Yes; the codebase was contributed to the Linux Foundation Decentralized Trust as the Hiero project in September 2024
History
| Date | Event |
|---|---|
| 16 September 2019 | Mainnet opened to the public and HBAR distribution began |
| 19 January 2022 | The Council voted to buy the hashgraph intellectual property from Swirlds and to open-source the code under Apache 2.0 |
| 9 March 2023 | An attacker exploited the Smart Contract Service to take tokens from several DEX accounts; network proxies were disabled and the flaw fixed |
| 16 September 2024 | Hedera contributed its codebase to the Linux Foundation Decentralized Trust, creating the Hiero project |
Security and audits
- Hashgraph consensus is described as asynchronous Byzantine fault tolerant, with a computer-checked proof in the Coq system
- In March 2023 a Smart Contract Service exploit took tokens worth just under 600,000 US dollars from DEX accounts before it was stopped
- A bug bounty programme rewards responsibly disclosed vulnerabilities
Risks and caveats
- Consensus nodes are operated by Council members; Hedera itself describes this as a permissioned model
- Large amounts of HBAR were held by the treasury and released under a long-term distribution schedule set by the Council
- Staking rewards depend on the reward account balance and can be lost if a node is removed from the network
Official links
- Website: hedera.com
- Docs: docs.hedera.com
- Whitepaper: hedera.com/hh_whitepaper
- Source code: github.com/hiero-ledger
- Block explorer: hashscan.io
- Blog: hedera.com/blog
Questions and answers
What is Hedera?
Hedera is a public proof-of-stake distributed ledger built on hashgraph consensus, offering smart contracts, native tokens and a consensus service; HBAR is its native coin.
Who created Hedera?
Hedera was co-founded by Dr. Leemon Baird, who invented the hashgraph algorithm, and Mance Harmon; it is governed by the Hedera Council.
What is the maximum supply of HBAR?
The HBAR supply is fixed at 50 billion.
How does Hedera reach consensus?
Nodes share transactions by gossip and use virtual voting on the resulting graph, weighted by staked HBAR; finality takes about 3–5 seconds.
Has Hedera had security incidents?
Yes. In March 2023 an exploit of the Smart Contract Service took tokens from several DEX accounts; Hedera disabled network proxies and fixed the flaw.
Sources
- CoinGecko — Hedera
- Hedera — What is Hedera?
- Hedera docs — What is Hedera?
- Hedera docs — Staking Program
- Hedera whitepaper v2.1
- Hedera — Council
- Hedera — Analysis & Remediation of the Precompile Attack
- Hedera — Hiero Turns One
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