Harmony (ONE), launched in May 2019 as part of Binance Launchpad’s Initial Exchange Offering (IEO), is a decentralized Blockchain platform developed as a branch between scalability and decentralization efforts. Development focused on data exchange and the creation of marketplaces for fungible tokens and non-fungible assets with the motto 一 Massive Decentralization.
In addition, Harmony promises high throughput. This comes with two “lows”: latency and pricing. Together, they are designed to put the platform at the center of efforts to lay the foundation for a future decentralized and credible economy.
Prior to the IEO, Harmony initiated a startup in 2018. His funding project raised $18 million in April 2019 and attracted the attention of investors such as Silicon Valley Consensus Capital and Hong Kong’s Remniscap VC. Over 2.8 billion of ONE token were bought by investors, of which 12.6 billion were for pre-mining.
Harmony promises investors accessibility to an environment that supports deployment in a variety of markets with a focus on data sharing, decentralized marketplaces, supply chain tracking, ad exchange, credit rating systems, and more.
Harmony Protocol is a proof of stake Blockchain and a forthright competitor to Ethereum. Ethereum is currently using the Proof of Work Consensus and will move to Proof of Stake via Ethereum 2.0. The argument is that Ethereum 2.0 will reduce transaction costs and improve network scalability.
Goals That Set Harmony Apart
The development of Harmony concentrated on the idea that no forum provides a good equilibrium between decentralization and scalability, as described in the project’s white paper.
Get Rid of Structural Constraints
Harmony wants to remove the structural constraints that prevent cryptocurrencies from becoming real digital money. This includes changes added to multiple layers of consensus algorithms, networks, and systems to improve performance without sacrificing decentralization.
Enhanced Throughput Performance
Higher transaction throughput is what distinguishes Harmony from things like Ethereum and other Blockchain solutions that are forced to attain performance gains by compromising other components. Harmony developers define contending solutions as unable to solve scalability problems or support high-throughput applications such as games and distributed exchanges. Likewise, Blockchains like EOS and IOTA have sought to replace the consensus model and introduce new technologies like Directed Acyclic Graph (DAG).
FBFT Protocol
The Harmony Consensus Protocol focuses on speed and energy efficiency. Many of Harmony’s scalability and throughput promises stem from the ability of the Fast Byzantine Fault-Tolerant Protocol (FBFT) to scale to network size using parallel transaction processing and by effectively managing link latency. Network topology was developed to enable faster consensus building and faster message exchange.
Deep Sharding
Harmony One created a system called Deep Sharding. Partaking nodes can safely find the nodes associated with this particular transaction and query them in a consensus strategy. The number of transactions completed in each period increases, resulting in faster public Blockchain functioning. The amount of this parallelized transaction processing reaches levels and Blockchain rates that were previously impossible.
During Harmony’s deep sharding strategy, attacking nodes can safely find the nodes associated with each transaction and request them in the procedural process. There is no doubt that deep sharding is an alternative to storing large amounts of information, building a sufficiently fast network that can pay incentives around the world. Basically, Harmony’s deep sharding enables:
- Sharding at both trade and consensus levels.
- Through this, the node can pinpoint other nodes that may play a role in the transaction and can only transact with them as part of consensus building.
- It aims to increase parallel processing power and improve platform throughput performance.
- Finally, smaller capacity devices can be turned into nodes on the network by eliminating the need for the node to store all Blockchain states.
Harmony vs Ethereum 2.0
One can now find Harmony stakes on Mainnet. They enable trading with nominal fees and quick finality. In theory, Ethereum-based applications could also be created on Harmony without incurring high gas charges. This allows you to extend projects such as Compound Finance and DMM Overseas Token to levels that support mainstream adoption. Over 50% of the token supply is bet, providing Harmony with a high level of security.
The Harmony ONE Protocol is a more promising investment option when compared to Ethereum. Investing in cryptocurrencies does not reduce risk. It was created for a 401K and Vanguard index fund. Most crypto investors are looking for the next unicorn in the Blockchain industry, the most searing industry in the world.
Blockchain has the capability to transform the world because it can give every business and company in the world a competitive edge. Harmony ONE already has a working proof of stake protocol for Ethereum 2.0, so it’s worth the risk. Both Ethereum and Harmony will benefit from their rising popularity in the Blockchain industry, but Harmony One is currently undervalued; there is a general consensus that one can get better returns in the long run.
Written by: Arpit Sharma
Follow him at: https://twitter.com/ingenious_geek
LinkedIn: https://www.linkedin.com/in/entrepreneur-arpit
Published January 22nd, 2022