So, what is Holochain? First, let’s take a look at its popularity.
The Holochain token sale ended on April 28, 2018. As one of the projects that were started in 2018, Holochain has done quite well. Most blockchain startups that had their token sale in 2018 ended up quite poorly, but Holochain is one of the few exceptions. Currently, Holochain is sitting in the top 60 cryptocurrency rankings by market capitalization. Let’s dive deeper into this project.
Building The Next Internet With Decentralized Hosting Ecosystem
In short, Holochain is a different kind of beast compared to the traditional blockchain. Holo does not actually have a native currency. All invalid transactions will be rejected by the network because Holochain works by analyzing and watching the accounts and not only the movements of the coin. Holochain put together a bunch of different factors into one distributed ledger network, such as a distributed hash table (DHT), digital signatures, and hashing.
How Does Holochain Work?
According to the Holo team’s explanation, Holochain is more efficient because of several different factors. First of all, there is no consensus because invalid transactions will be automatically rejected by the network. There’s no need for all verifiers in the network to verify one same transaction (which will take too many resources). Holo team believes the network can be 10,000x more efficient than Ethereum and other second-generation blockchains. Apart from that, Holochain smart contract includes Javascript and Lisp. Unlike Ethereum where you can only use Solidity, Holo team believes the correct path to blockchain mainstream adoption is if you can attract mainstream developers with more common programming languages like Javascript.
And secondly, the combination of DHT, digital signatures, and hashing will make Holochain’s distributed ledger network more than efficient enough. With hashing, your hash will automatically change once you change a single byte in the same data. With digital signatures, you can only sign it if you know the private key. So, obviously, the third party cannot digitally sign the message without having access to the same private key. As for DHT, contents are identified by their hashes, and thus the potential hackers cannot try to replace the hash with something else.
The good thing about DHT is that downloads will be much more efficient compared to the decentralized network. Imagine DHT downloads are like peer to peer file sharing (such as BitTorrent) where people do not need to ‘download’ videos from the same centralized server over and over again. They can just share it among friends, and thus, the servers will be ‘lighter’ as it does not need to ‘host’ too many visitors at the same time. Community-hosted files will be a big part of our future, and Holochain’s DHT technology tries to ensure exactly that.
This is why Holochain theoretically has an awesome future because with hashing, digital signatures, and DHT, it is much more tamper-proof and more efficient than traditional blockchains or centralized servers.
Holochain Token (HOT) and HOLO Fuel
Holochain Token (HOT) and Holo Fuel are not very easy to understand, but we will try to explain it to you in a very simple way. First of all, HOT is an ERC20 token, while Holo Fuel is not. HOT was intended to be burned once it gets swapped to Holo Fuel. That being said, the plan has changed. Now you can convert HOT to Holo Fuel and vice versa in a 1-to-1 conversion rate. So, when HOT is converted to Holo Fuel, the token won’t be in the circulating supply anymore and will be locked in what they call as Reserve Account.
People who participate in the network can convert back their Holo Fuel to HOT. The team of Holo believed these changes were necessary to support the liquidity and the popularity of the network.
Holochain On The Crypto Market
Currently, at the time of this post writing, Holochain is being traded at ~$0.000784 USD. Holochain is one of the top 60 altcoins and it rose to fame in the beginning of this year (2019) when Holochain kept on rising against both BTC and USD. You can trade Holochain in many different cryptocurrency exchanges, including Binance.
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