Harmony (one) Coin Review – A Future Ethereum Competitor?
With an impressive team of tech experts to its name, it’s not surprising that Harmony (ONE) coin has attracted an equally impressive list of backers. Harmony is currently focusing on building its blockchain network, but it has lofty ambitions — ultimately, the cryptocurrency wants to replace Ethereum.
Is it set to achieve this goal, or is it being overly ambitious? We’ll examine all this and more as we review Harmony coin and its features, but ethereum may just have a competitor ready to make its move..
Harmony coin explained
We’re sure you want to skip straight to the juicy stuff about how Harmony could be the next Ethereum in a few years’ time. But first, let’s delve into a little ONE coin history.
Harmony is the brainchild of ex-Google engineer Stephen Tse, who created the platform back in 2017. The team now consists of twelve people, most of whom have backgrounds just as impressive as that of Tse — their work histories include big names like Microsoft and Amazon.
This wealth of experience has no doubt played a crucial role in the platform’s quick path to success.
Since its launch, Harmony coin’s price has enjoyed substantial price growth, jumping from a starting point of around $0.02 to hovering between $0.08 and $0.1 in 2021 (although it has reached highs close to $0.2).
Paying attention now? Let’s get into what Harmony coin is all about.
Harmony itself is a blockchain platform with the principal aim of running decentralized applications, more commonly known as DApps. It’s not the first platform of its kind, but Harmony is focusing on improving its usability. .
Harmony platform couldn’t run without its native coin, ONE token, which fuels the infrastructure. It’s used to pay transaction, gas, and storage fees and for staking in the consensus mechanism to ensure data is verified (more on this later).
Harmony vs. Ethereum
If you’ve been paying attention so far, you should remember that Harmony coin is setting out to be a viable Ethereum alternative. But don’t just take us at our word — it’s time to examine how exactly the Ethereum model works.
Ethereum is a blockchain network for decentralized apps with low transaction fees, many features, and high security. It uses a proof of work (PoW) blockchain network, meaning users verify data in return for rewards to ensure everything is legitimate and that the entire network gives consensus.
Harmony has a similar objective — but with a twist that improves performance.
For one, it offers faster processing times for transactions. As outlined below, it takes Harmony just two seconds to form a new block, compared to 12 minutes for 64 new blocks on Ethereum 2 (an improved version of Ethereum set to launch in 2022). It also beats competitors like Polkadot and Cosmos.
This is possible thanks to Harmony’s sharding process, which splits a blockchain network into smaller parts (“shards”) with their own data to verify. Unlike Ethereum, shards reach consensus instead of the entire network, therefore speeding up transactions.
These obvious benefits may lead to many people wondering whether they should buy in now. However, to truly decide whether harmony coin is a good investment, you need to understand and assess its features.
Features of harmony blockchain
By now, you should already know that Harmony is a platform for DApps, and that it’s aiming to run faster than any alternatives currently available thanks to its sharding process — but we haven’t delved into the rest of Harmony’s unique features.
It’s not just the slower transaction times themselves that hold Ethereum back — this issue causes a wider scalability problem since the platform would be unable to handle more data. Although developers hope the introduction of Ethereum 2 will solve the issue, it still lags behind others.
Harmony gets around this through its sharding process, which improves network communication and transaction speeds, therefore making scalability more feasible.
Sharding isn’t just extremely effective; it’s also reassuringly secure. Harmony uses a distributed randomness generation (DRG) process, meaning it randomly assigns “nodes” (computers in the network) to verify shards.
This makes it practically impossible to predict patterns while still ensuring anyone can check validity, therefore keeping the platform decentralized.
Although the Harmony infrastructure contains various shards, they don’t exist as isolated units. All shards communicate with each other, allowing cross-shard transactions — this also enhances scalability.
Sophisticated consensus mechanism
Harmony uses a consensus mechanism called Fast Byzantine Fault Tolerant (FBFT) — this might sound incredibly complex, but bear with us.
As the name might suggest, the FBFT is a faster adaptation of the more commonly used Practical Byzantine Fault Tolerance (PBFT).
Both processes allow transactions to be approved by various nodes in a network using a leader node that broadcasts data and validators that verify the data is correct — but the FBFT uses multi-signatures to speed up verification.
Plus, since Harmony is a Proof of Stake (PoS) platform, it ensures that users only have a say if they’ve been proven by others to make reliable decisions.
Blockchain state sharding
Another key aspect of Harmony’s pioneering structure is Blockchain state sharding, which refers to how it stores data from the blockchain.
Every shard holds part of the blockchain state, which keeps everything distributed across the network — improving security and true decentralization.
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