In this article we will be covering the fundamentals of the Holochain blockchain network, how it is different from Bitcoin, Ethereum and other standard blockchains, why it is different and why the community sees it as important.
Currency name(s): Holo (HOT) for the time being as the mainnet has not been launched yet; once the network switches to its proper mainnet, a different token will be released called Holo fuel, and all Holo token holders will swap it for the new token
Genesis Block: December 2016
Total Supply: Maximum supply, for the time being, is unknown, but the total supply is around 177 billion HOT tokens, and all are in circulation
Features: agent-centric, peer-to-peer distributed network, DApp-friendly
The Holochain network is a newer addition to the blockchain technology projects, but has come a long way and is now in the top 50 cryptocurrencies the community is attentively following, as it brings various improvements and different solutions to the users. The goal of the team behind it is quite bold and ambitious – they believe they can revolutionize the internet and all services and products that can be found online today. It can be implied that anything built on the internet can also be built on the Holochain network.
Curiously, its blockchain and architecture are not data-centric as can be found in Bitcoin’s or Ethereum’s networks but are rather agent-centric. This is a novelty for the crypto community, as in the traditional blockchain networks, Bitcoin’s for example, the nodes must reach a consensus and all must maintain an image record of the whole blockchain. What agent-centric blockchain does is it allows for a network consensus to be optional and needn’t occur so often. It is called upon only if the users themselves want to make drastic changes to the network itself.
Another feature that makes the Holochain network unique is its focus on distributed apps, or shorter, DApps. The way the network itself is built is to help drastically develop dapps and use the blockchain technology to support and host them on the web. Considering that the network is agent-specific, that allows DApp developers to have scaling capacities not seen in other blockchain networks. What is also interesting is that, due to the architecture being as it is, no drops in performance can occur within the network, regardless of how many DApps are hosted on the network, the number of DApp users or data transfer.
As the Holochain network is very different from other traditional blockchain networks which use a data-centric approach, this network with its agent-centric approach brings new options for its users. One of the perks is that there is no consensus, and the agents only maintain their blockchain fork. However, this doesn’t mean there is no consensus throughout the network – there is an option to vote for consensus but it is reserved only for the instances where the whole network is to be changed or new features that will affect all or a large number of users are to be added. Then, the vote for consensus can be carried out.
As the network and the blockchain are created with the user in mind, there are two types of users on the network: those who use it to develop DApps and those who maintain the nodes so that communication and information transfer can run smoothly. While developers need to use Holochain’s native tokens to fork a part of the blockchain and thus burn it, the nodes are rewarded for hosting the DApps, for maintaining the smooth operation of the network and for lending their processing power. In essence, the Holochain network functions as a cloud computing network, except that it is decentralized and possibly more powerful than a cloud computing network.
There are no ring signatures either, as can be found on the Monero network for example, but the developers need to have a cryptographic key in order to connect to their unique blockchain networks. Without that key, they can only access the public blockchain.
Our Holochain market analysis has shown that, although this network and its token are relatively new in the community, its price has remained somewhat flat with very few fluctuations, even throughout the market correction. The current price per token is $0.0017, and the network’s market cap is around 236 million. The highest price per token was very recently, in May this year, when it reached $0.0025. The lowest price ever recorded was last year, in June 2018, when it was $0.0003. For the time being, few markets support Holochain token trading pairs, some of which are Fatbtc, Binance, and Hotbit, where investors interested in supporting the Holochain network can obtain this token by trading in Ethereum, Bitcoin or Ripple. Fiat currency pairs are still not supported.
Although created in a completely different manner from what we are used to seeing in the cryptocurrency world, this network is still at the beginning of its life cycle by some estimates. First of all the network operates on a test, beta network, and the team is still testing a lot of features they would like to add onto the blockchain. They are planning to transfer to mainnet when they will also change their current Holo token for Holo fuel. It is assumed that the change will be 1:1, but that needs to be confirmed by the team. Regardless, the Holochain network brings many innovative solutions due to its approach to the whole blockchain technology. As always, with new technology comes the problem of adoption, but it is safe to say that the Holochain network is on its upward trajectory, and the community is expecting the value to increase. That’s why a good holding position for this token is medium to medium-long.
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