Holo Coin: The Cryptocurrency Driving An Alternative to Blockchain
It can be difficult to truly stand out in the crypto world—almost every coin claims to offer something new, only to be remarkably similar to a dozen others. But once in a while, something comes along that makes you do a double-take, like being a cryptocurrency that doesn’t operate on the blockchain. Introducing holo coin.
Holo coin is abbreviated as HOT—which feels appropriate. When its value increases by 1,566% in a year, you know it’s time to start paying attention. While holo still has a way to go before it hits the mainstream, it’s getting attention for all the right reasons by hosting applications without the problems of the regular blockchain.
Let’s dive into the features, history, and future of holo coin to help you figure out whether it’s a legitimate blockchain competitor or just a load of “hot” air.
What is holochain coin?
If you want to know more about the cryptocurrency that’s shot up in value recently, you’re in the right place. Holo (HOT) is the native token of Holochain, a peer-to-peer platform aiming to be the go-to place where developers launch their decentralized applications (DApps). It’s more scalable and efficient than a blockchain—but more on that later.
As for holo coin itself, this is where things get a little complicated. The project originally launched holo as an ERC-20 token (using Ethereum), but the team plans to phase holo out and replace it with a new cryptocurrency called holofuel. When the time comes, investors will be able to redeem their holo for holofuel, which offers some additional benefits (like having a value backed by computer power).
But before we move on to the finer details, let’s get to the more important stuff: holochain’s price and what it’s been up to for the last few years. Despite the impressive price movements the coin has seen so far, its value is still below the $1 mark.
Still, that doesn’t take away from how much its value has grown. Holo was first launched in April 2018 at a negligible price of around $0.0004; it remained at a similar value for the next few years, never rising above $0.002—but things were about to change.
If we had to use one word to describe the holochain news in 2021, it would be volatile. When the cryptocurrency craze started taking over the world in January 2021—and to an even larger extent in April—holo got swept up in the wave. It reached a peak of $0.028 at its highest point. That might not be anywhere near Bitcoin-level prices, but it’s still a breathtaking change of fortunes.
The crypto market crashed shortly after, but holo ended up far higher than its pre-crash value. It’s currently on the up again, rising from $0.005 to $0.01 between July and August 2021.
Who knows what we can expect next?
Before you can assess the value of a cryptocurrency and jump into holochain investment, you need to understand how its mechanisms work.
As we touched on already, Holochain aims to let developers launch apps on the protocol without using blockchain technology. Now, it’s time to explain what that actually means.
Holochain versus blockchain
On a traditional blockchain, each block is a copy of the others. In contrast, on the holochain, a block is independent and run by different nodes (computer networks).
Another key difference is that every node on the blockchain network must have a full copy of the ledger, whereas on the holochain, each node only records its own transaction history.
This setup is actually where the name “holochain” comes from—the infrastructure resembles a hologram since individual “light beams” (or components of the network) make the system function.
As a result, the protocol is more decentralized than blockchain.
If you’re worried about the implications for security of giving each node so much power and autonomy, fear not. Although there’s no built-in consensus process, there’s what’s known as an accountability-based system. After receiving the record of a transaction and validating it, the node will relay it to a few peers at random, which could result in the first node being blocked from the system.
Advantages of holo coin
Thanks to the features outlined above, Holochain is more scalable, more secure, and less expensive to use. The need to involve all nodes in everything makes the blockchain slower and more data-intensive, which in turn reduces scalability. From your perspective, that means higher transaction fees and transaction times—both of which holo manages to avoid.
Holochain is also more energy-efficient since it doesn’t require as much data and computer usage to approve each transaction.
Along with the decentralization advantage, the end product is an ideal place to launch decentralized applications. Few things are more important for developers than scalability and efficiency, after all.
And yes, other Ethereum competitors might claim to offer something similar—but Holochain takes things a step further by offering a legitimate alternative to the blockchain.
Charting the future of Holochain
We’re not here to make any guarantees about what holo coin will be worth a few years down the road. For starters, it’s early days, so it’s difficult to make predictions. However, we can certainly give the coin a fair review.
While the holochain technology is impressive, it’s unclear whether the market is ready for it. Most people barely understand what blockchain is—how can you expect them to get their heads around an alternative like Holochain?
But on the other hand, early adopters are looking for a viable alternative to the blockchain or the next phase of its evolution, and Holochain is one of the few protocols to really tick these boxes. Getting involved now could put you ahead of the pack.
As we’ve seen, Holochain is also a great fit for app developers—especially peer-to-peer platforms, supply chain management, and other cryptocurrencies. The use case here is clear.
Plus, the plans to unleash holofuel are another exciting development. Holofuel will mostly serve to allow app providers to pay Holochain. But unlike other cryptocurrencies, the coin’s value will be backed by the computing power of the hosts (assessed in terms of processing time, storage, and bandwidth).
As the computing capacity of the network grows, the price of holofuel will also increase therefore giving the cryptocurrency more tangible value. The aim is to keep the price stable and to prevent it from becoming a speculative asset.
After the crypto boom and crash (and recovery) we’ve seen this year, it’s obvious why that’s useful.
But don’t forget that holo also has to compete with Ethereum 2.0 and other protocols like Cardano and Solana, which are aiming to overcome similar challenges. There’s no guarantee it will win the race.
How to buy holo crypto
If the advantages examined above convinced you, maybe you’ve decided it’s time to invest and you’re wondering how to buy holochain in the USA or abroad.
Wherever you’re from, you can buy the token on Binance and a few smaller exchanges.
Then, since it’s an ERC-20 token, you can store it on a compatible wallet like MetaMask or a multi-currency cryptocurrency wallet, like the MyConstant multi-currency wallet. Or why not try something a little different?
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