Introduction

Blockchain technology has been at the forefront of the financial sector revolution by ensuring safe, secure, and speedy solutions to the industry. The next generation of blockchain platforms seeks to bridge the gap between everyday financial service users and the blockchain network.

One such platform seeking to bridge this gap is the Hathor network. Its dedication to the growth of the crypto ecosystem and a set of distinct features have made it stand out amongst the numerous projects out there. In this article, we will look at all Hathor is about: what it is about, how it works, its features, and the base token HTR.

Hathor’s novel architecture combines blockchain and DAG (Directed Acyclic Graph) technology, greatly increasing transaction speed and security.

The platform is home to developers, businesses, and individuals who want to produce and carry out transactions with their digital assets. Its accessibility, scalability, and simplicity of use make it capable of carrying out several transactions per second at a reduced cost, greatly setting it apart from blockchain platforms with poor transaction rates and high gas fees.

History of Hathor

The Hathor project was initiated in 2018 and successfully launched in January 2020 by crypto specialists. Also, the project gained inspiration from Marcelo Brogliato’s architectural solution in his PhD thesis at the Brazilian think tank and university FGV. Later on, in 2018, Brogliato and other members, CEO Yan Martins, CFO Layla Mendes, and other engineers from Vialink Informatica came together to form the Hathor Labs.

In 2019, the team launched the testnet at the Crypto Valley conference and ran their first event, fully launching the program on January 3, 2020.

Hathor Labs

Hathor Labs is a separate entity from Hathor Networks. Although they are usually confused with one another, Hathor Labs is the brain behind Hathor Networks. They are behind the blockchain technology utilized by the Hathor Network. As the brain of the network, Hathor is in charge of all things relating to the betterment of the network. It is in charge of innovations, research, and the incorporation of technological advancement.

By dedicating its time and resources to its duties, the Hathor lab can enhance the networks, scalability, user-friendliness, and general functionality, giving the network an upper hand in the ecosystem and making it an essential part of the Hathor Network.

How Does The Hathor Network Work?

The Hathor network has a novel architecture combining the best DAG and blockchain technology. Both perform similarly but differ in their structure. Blockchain forms blocks in a linear, chronological order, while DAG structures block like a tree where transactions are connected.

Hathor utilizes these two databases depending on the flow of transactions. For instance, blockchain technology is used when transactions are low. It applies the Proof-of-Work consensus, a secure validation protocol, to validate transactions. This system, however, is affected by the inability of blockchain networks to create new blocks simultaneously.

All transactions in a blockchain network are stored in the same block while being validated, complicating the mining process, increasing processing time, and reducing network scalability. The Hathor network battles this problem by introducing a Directed Acyclic Graph (DAG).

Combining the two creates a system where the blockchain’s storage structure is paired with DAG side chains that branch out from the blocks. This allows the network to carry out several transactions on different chains simultaneously.

Hathor also uniquely validates transactions compared to other networks in the ecosystem. By utilizing the branch system of DAG, the Hathor network allows individual transactions to provide validation for each other. However, for a transaction to be validated on the Hathor network, it has to be linked to an already existing transaction that was previously validated by the blocks. In addition, as the volume of transactions gets higher, the DAG system validates them faster.

Hathor Network’s Main Features

Hathor has a novel architecture that allows it to execute transactions speedily and safely. It also contains main features that are vital to current and potential users. These features include:

Custom Tokens

On the Hathor network, you can create and launch your digital tokens with just one click. These tokens are easily customizable and are equipped with the same speed and security as the base token, HTR. Furthermore, the tokens can serve different purposes, like stocks, loyalty points, voting rights, and even owning digital assets like NFTs and website names.

These tokens are created using smart contracts that allow users to imbue their special logic into their characteristics. The user also sets the token’s name, symbol, supply, and many other components that aid it in serving its purpose.

Nano Contracts

Nano contracts are an interesting concept in the Hathot network. It can be likened to a simpler smart contract version where two or more people lock up funds for later when special conditions are met. Once these conditions are met, the network decides how many tokens each member gets depending on the pre-defined rules.

One major component of Nano contracts is the use of Oracles. Oracles are external agents of the network who are trusted to bring real-world data into the network.

Side DAGs

Side DAGs are customizable DAGs designed to meet the needs of an enterprise, offering flexibility and privacy beyond that of public blockchains. It is a private and permissioned hybrid network that runs side by side with the main network with adaptable validation and fee rules.

Interoperability

Hathor enables interoperability with Ethereum and other EVM-compatible networks out there. The Hathor Network is designed for easy compatibility with other blockchain networks. Through the network, users can access a multi-currency wallet that allows them to swap assets across blockchains and grants them access to a variety of crypto assets.

Hathor’s interoperability is a great feature for companies and individuals who seek compatibility for their blockchain needs. This gives the network a plethora of use cases in the real world, like bridging several tokens to one another.

Atomic Swaps

With Atomic swaps, users can exchange tokens within the same transactions without smart contracts. All Hathor assets are supported, allowing users to swap their custom tokens with HTR tokens or NFTs.

Main Attributes of The Hathor Network

Hathor houses a variety of features that are key to the success of the network. However, certain features set it apart from the other networks in the ecosystem. Some of these features include

Scalability

Hathor can execute several transactions at the same time. It is equipped with the DAG (Directed Acyclic Graph) consensus mechanism, which facilitates parallel transaction processing. Hathor can increase the number of nodes in the DAG consensus mechanism proportional to the number of transactions triggered on the network. This feature makes Hathor a good fit for users who require the network’s services to handle a large number of transactions.

Security

The Hathor Network utilizes a double consensus mechanism system, which comprises the Proof-of-work and Proof-of-Stake algorithms. The two work hand-in-hand to enhance scalability, security, and the speed at which transactions are validated.

Each algorithm performs a separate task from the other, ensuring the network’s safety and transaction speeds. The PoW algorithm controls the flow of blocks, ensuring that new blocks are added securely without double-spending occurring. The PoS algorithm grants users the chance to take part in block validation. By doing this, users are able to earn additional profit from taking part in the security of the network.

User-Friendly

Hathor boasts a user-friendly network that makes creating and managing digital assets easy for users and developers. The platform offers several tools and resources for developers to get familiar with building Dapps on the network while offering them building tutorials and an SDK (software development kit) for all their building needs. Additionally, the network has a user-friendly wallet to store and manage the user’s digital assets.

Reduced Transaction Costs

With Hathor’s increased speed in completing transactions, the network is able to cut the cost of transactions for companies and individuals. The network’s unique architecture plays an essential role in this reduction. Also, Hathor allows users who wish to prioritize their transactions to do so by paying a higher fee, further cutting the transaction time.

Mining on Hathor

Hathor Network employs the proof of work mechanism which utilizesHathor makes use of a proof of work mechanism that utilizes the SHA256 algorithm. This allows the protocol users to mine both the HTR token and BTC token simultaneously, greatly increasing the user’s rewards. All this comes at no added risk or cost to the user in gaining extra hardware to their setup.

Merged mining with the biggest blockchain network greatly boosts the Hathor network’s hash power, enabling the network to achieve record-breaking hash rates of about hexa-hash levels.

How to Become a Miner

Although users could mine HTR themselves, the easiest way for one to mine HTR is through mining pools. F2pool and Zulu are two popular mining pools for HTR, and to start mining, all the user needs to do is join one of these pools, configure tier mining software to match that of the pool, and link to their HTR wallet address. This gives users automatic access to the HTR ming process and makes them eligible for mining rewards.

Hathor Network Halving Chart

The Hathor Network recently completed its token Halving. Over the years, the network has halved its block rewards from 64 HTR per block in January 2020 to 32 HTR/block in 2021. In 2022, the block was eventually halved to 16 HTR/block before the network completed its halving process at 8 HTR per block in 2023.

What is The HTR Token?

The base token of the Hathor network is the HTR coin. The coin utilizes a consensus technique called “Hathor Merge Mining.” This technique allows simultaneous mining of the HTR coin and Bitcoin without needing extra hardware or an increase in energy consumption.

As the network utility token, the HTR token can be used for a plethora of cases. It can be used for staking, payment of fees, and governance decisions of the network. Aside from the base token, custom tokens can also be developed on the network and utilized for several purposes like fundraising and loyalty projects.

HTR Tokenomics

During the creation of its genesis block, Hathor Labs pre-mined 1 billion HTR and set to distribute the token in the following way:

• Seed Sale: 5% of total supply
• Private sale: 8% of total supply
• Development Team: 10% of total supply
• Advisors: 5% of total supply
• Treasury: 24% of total supply
• Bounty and Ecosystem: 2% of total supply
• Staking: 3% of total supply
• Exchange Liquidity: 5% of total supply
• Burn: 20% of total supply
• Five-year vault: 18% of total supply

Is Hathor Network a Good Project?

Hathor’s approach to the blockchain ecosystem is unique. It breaks away from the status quo of new projects that promise innovative technology. Rather than promising cutting-edge technology, Hathor focuses its efforts on scalability and security. These features play an important role in the ecosystem and could lay the groundwork for future blockchain-based solutions.

Take Action On HTR

HTR is available on popular exchanges like Gate.io. Create an account, fund it, and begin trading your favorite pairs.

• HTR/USDT