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What Is Harmony (ONE)?

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Esmee
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In this post, we will take a look at what is Harmony (ONE) and how does it work. This guide should give you brief overview of Harmony blockchain.

Introduction

Harmony blockchain was created to solve the sharding issues of the Ethereum and Zillaq blockchain and get it to scale. Harmony is now able to transfer assets from the Ethereum and the Binance. It is one of the blockchain solutions whose dApps and the smart contracts are created with same language as of Ethereum - Solidity which is primary language of the Ethereum.

What Is Harmony?

Harmony started of as an Initial Exchange offer on the Binance platform. Later it migrated off on it's own chain. ONE token is a native token of the harmony chain and it has a circulating supply of 10 billion with market cap of $750 million.

In the market of the sharding based cryptocurrencies, harmony chain is one of the secure, scalable and decentralized solution. Harmony makes use of the Fast Byzantine Fault Tolerance (PBFT) method in it's Proof of Stake consensus mechanism.

In order to become a staker or validator in the network, Harmony requires them to hold 10K ONE token. This reduced barrier of entry makes it easy for anyone to become a validator and reduces dependency on single validator node.

Considering Harmony is making the layer-2 solutions on the Ethereum and offering more features and scalability, a lot of Ethereum developers can benefit making their apps and solution on this chain.

Harmony Pros

Harmony chain offers a lot of benefits to it's investors and the developers. Some of the Pros of the chain are as follows.

  1. Scalability: Harmony is trying to reduce the barrier of entry for investors who wish to use the crypto as a digital currency on a larger scale.
  2. Transaction Speed: Harmony offers faster speed in transaction at low speed. Which helps it get over the limitations of the Ethereum blockchain.
  3. Fast Byzantine Fault Tolerant protocol (FBFT): This protocol helps Harmony to offer faster speed on blockchain at cheaper rate and also energy efficiency.
  4. Defi, Swaps and dApps: Harmony is getting more swaps, Defi projects and some dApps due to it's faster transactions and lot of transactions being done under single coin which is similar to the Polygon.

These features make the Harmony one of the interesting POS based blockchain solutions. It's definitely one good chain and token worth invested into.

Harmony Cons

Like most of the coins and the blokchains, Harmony has it's issues too and it does suffer from the problems.

  1. Low Market Adoption: The way it is getting pitched and popularity is low. Even dogecoin is known to many but despite features like Polygon and good performance the popularity is tanking for Harmony.
  2. Lack of Enterprise & Developer adoption : As of now not a lot of developers are migrating their dApps from Ethereum to Harmony. Same with Enterprise apps and solutions not being ported or any major partnership on that front.

Considering the limited exposure and the limited development and popularity, the coin has not made much impact on the investors and community. And it is suffering from lack of adoption and flagged under low-value coin like dogecoin.

What projects are making use of the Harmony

There are two notably good projects currently making use of the Harmony chain.

  1. SWOOP: This DEX makes use of the Harmony and Ethereum chain for migration & swapoing of of assets across chains.
  2. Horizon: This is a cross chain bridge project that allows the asset transfer across Binanace, Ethereum and Harmony chain.

In near future more projects are likely to make use of the Harmony blockchain.

Conclusion

Harmony (ONE) token and the blockchain have pretty good features and edge over the Ethereum blockchain. However it's lack of popularity, adoption and also unknown market variables makes it not-so-investable coin as of this moment. If you are interested in cross chain bridges and the chains with low fees then Harmony may be worth keeping tab on for future use case.

Posted Using LeoFinance Beta