EVERYTHING YOU SHOULD KNOW ABOUT HATHOR NETWORK

Everything you should know about Hathor Network

leewayhertz.com/everything-about-hathor-network

One of the new entrants in the world of cryptocurrency is Hathor(HTR). It is a proof-of-
work blockchain-based digital platform designed for lightweight financial transactions
and contracts. Since its launch in 2020, it has been in the spotlight for its unique and
entirely novel architecture. Hathor Network has put forward modest value propositions
that can resolve the problems of scalability and decentralization maintenance, which are
otherwise common in distributed ledger networks like that of Bitcoin and Etheruem.

Why is something like Hathor needed?

Within a few years of its introduction, the bitcoin blockchain was acknowledged by the
industry as a revolutionary technology for enterprises’ needs. But while exploring it for
real-life applications, bitcoin’s base design was found limited in terms of both scalability
and applications. When transaction volumes grow in the bitcoin blockchain, it starts
facing limitations on different grounds, like storage and network bandwidth gets low;
consumption of computing power and electricity for ‘Proof of Work’ massively increases;
mining becomes concentrated among a few sophisticated miners only: cryptocurrency
value dips in eventually. Another typical issue is the high transaction fees.
Does the anatomy of Hathor Network overcome these kinds of limitations? If yes, then
how it does that? What are its novel features that are lacking in other mainstream
blockchains?
This insight deep dive into every aspect of Hathor, especially focusing on its comparative
analysis with other mainstream blockchains.

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What is Hathor Network?

Most simply, Hathor can be described as a scalable and easy-to-use distributed ledger to
support light financial transactions and contracts. It is also a consensus platform, but its
architecture is novel; it is a hybrid one designed by combining Directed Acyclic Graph
(DAG) and blockchain technologies. Basically, it is a blockchain inside a DAG, and both
are intertwined. When the number of transactions is low, the blockchain ensures security,
and when the number increases significantly, DAG takes over.

This hybrid architecture creates the perfect environment for multiple use cases, especially
where high scalability is needed. How DAG and Blockchain, when put together, improve
the scalability of the Hathor network will be discussed shortly. Before that, here defining a
few features of Hathor that make it different from other platforms.

What makes Hathor different?

The makers of Hathor have introduced it as a ‘Scalable distributed ledger for real-world
applications.’ It has been designed to resolve quite a few issues prevalent in current
mainstream blockchains, for instance:

Heavy transaction fees in Bitcoin Blockchain is one of the most talked-about issues.
But, transactions over the Hathor network are always free, which means the
cryptocurrency can be traded and transacted without paying any fees.

Hathor is much more scalable than Bitcoin or Etherum network, which means even
when transaction volumes increase, the security and speed of the network don’t get
compromised. But that doesn’t mean that network uses any centralized coordinator
at any point in time. Hathor network is a completely decentralized ledger, yet it
successfully offers long-term security when transaction volume grows.

The Hathor network allows merged mining with Bitcoin and Litecoin. This means
even the bitcoin and litecoin miners can participate in the mining of HTR, and in the
process, they don’t lose the profit collected from Bitcoin and Litecoin chains.
Besides, miners receive incentives in the form of HTR tokens at no extra cost. This
makes the miners feel secure and motivates them to mine for HTR cryptocurrency.

With just a few clicks, anyone can create Custom Tokens (digital tokens) on Hathor
Network. The official website claims that a 13-year-old kid can create a token for
fun.

The Hathor network incorporates ‘atomic swaps.’ The benefit of this feature is that it
allows separate tokens to be reliably exchanged simultaneously on the same
transactions, which induces more efficiency in the network.

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Another major feature of Hathor worth highlighting is the Nano Contract. Nano
Contracts are under development now. These are just like smart contracts but use
way less computation power and fees. So, it would be a lightweight variant of the
smart contract. Also, by incorporating built-in automatic swaps, nano contracts aim
to eliminate transaction fees.

Lastly, as mentioned above, the architecture of the Hathor network is novel and
unique. It is built by intertwining the blockchain and DAG technologies to solve the
problems of scalability and decentralization maintenance prominent in other
distributed ledger networks. Different sources have stated that no other publicly
known project is currently developing a similar kind of solution.

Here defining how the novel architecture of Hathor functions and achieves high
scalability.

What is unique about Hathor Novel architecture?

Hathor Network comprises DAG and Blockchain, both are distributed ledger or
databases, but there is a difference in their structure. While blockchain forms a linear
chain of blocks in chronological order, DAG is like a tree; where transactions branch out
from one transaction to another, and so on.

In the Hathor network, when the number of transactions per second is low, blockchain
gets into action to validate the transactions using Proof of Work consensus, a highly
secured validation protocol. But, the proof-of-work (POW) system has one major
limitation: blocks can’t be created simultaneously. And that is the cause of blockchain’s
poor scalability when transaction volume increases. In the blockchain, one block gets
created at one time; all the transactions happening around the same time get stored in the
same block. Thus, the mining gets complicated, validation takes time, and scalability
drops. Also, as one block links to another, only one linear chain exist in the whole
network.

To tackle these limitations, the Hathor network supports the blockchain’s chain-like
storage structure with DAG side-chains that branch out from the blocks. Such a setup
facilitates different types of transactions to run on different chains simultaneously. So, the
Hathor network can extend storage by X times with X transactions.

How the validation of transactions happens on Hathor?

In Bitcoin or Etheruem blockchains, the transactions are arranged inside the blocks, but
in the Hathor network, transactions are arranged outside the blocks in a DAG-branched-
chain network. In DAG, individual transactions provide validations for one another. To
get validated, each transaction needs to be linked to an existing and relatively new
transaction, which the blocks have confirmed. The higher the volume of transactions gets,
the faster a DAG validates them.

How Hathor Network Validates Transactions at a Faster Pace?

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Multiple transactions are mined into blocks in the blockchain, and sequences for the
transactions are maintained with ‘hashes’ between blocks. But in DAG, every transaction
gets directly involved in maintaining the sequences. When a transaction takes place, it has
to link itself with a previous transaction to maintain the validation sequence. This makes
it block-less and skips the process of mining. This makes the validation process fast and
also cuts down the need for mining equipment and lowers energy consumption. In a
nutshell, Hathor’s architecture takes the middle way between the ones from IOTA and
Bitcoin.

Not just the validation process, but creating a custom token on Hathor is also pretty easy
and fast. Gas, the fee paid to validate the transaction and to add the blocks to the
Ethereum blockchain, Solidity, the contract-oriented programming language, ERC 20, the
standard for creating contracts, all these paraphernalia are necessary to create coin or
contract on Ethereum network but Hathor network eliminates or at least reduces the need
for these.

What are the two main features of Hathor Network?

Custom Tokens: Over the Hathor network, one can create their own digital token with
customized specifications in just one click. These custom tokens operate with the same
security parameters and scalability as native HTR tokens. The value of these tokens works
independently of the price of 1 HTR. The use cases of custom tokens are multiple, such as:

It can be used for financial participation in a company’s stock

It can be used as mileage or loyalty points

It can be functional as proof of ownership of digital goods such as website domains

Nano Contracts: Using nano contracts, two or more people can transfer their funds to a
special transaction over Hathor Network. Nano contract defines the rules of transactions,
like how many tokens each participant of the contract will receive. And just like smart
contracts, they are decentralized and not governed by any intermediary.

What Hathor development services does LeewayHertz provide?

Different applications can be built on top of the novel flexible technology of Hathor.
LeewayHertz offers a set of turnkey development services to help businesses implement,
run, connect and adopt the benefits of Hathor mainnet and gain a competitive advantage.

dApp Development: Our team of developers has decade-long experience delivering
effective dApps that are secure, trustless, scalable, rapid, and stable. The team has worked
on multiple projects across different industries and verticals. Bringing in the same
expertise to the genre of Hathor dApp development, our developers can help your
business grow leveraging custom decentralized applications.

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Wallet: Hathor is a white-label wallet that offers containers for wallet services to simplify
the processes like sending and receiving tokens, creating custom tokens and exploring the
transactions, etc. We are here to assist you in exploring the full potential of the Hathor
wallet. We bring along vast domain know-how and rich experience of offering crypto
wallet solutions, including secure crypto wallet development to other range of wallet
services designed in accordance with specific blockchain containers.

Full Node setup: The pros of running a full node are known to all; it’s the full-proof way
to maintain your trust on any blockchain network. Any break in consensus rules and your
node will automatically reject a transaction. Likewise, there are numerous benefits of
setting your own node in the Hathor network, including safety and privacy. Reach out to
our team of blockchain developers for an end-to-end node setup solution.

Ready for the future offerings: Hathor has many interesting offerings in its pipelines,
such as nano-contracts, oracles, side-dags, etc. Soon, these will be launched, and
LeewayHertz is excited to work on them. We have rich experience working with similar
Smart contracts and Oracles presented by other blockchains, and we are up and ready to
explore Hathor.

The roadmap ahead

Much of the Hathor network is still under development. But its roadmap has buddle of
projects on the roll. Release of Nano contracts, NFT integration, and integrated
transaction with other blockchains are some of the proposed plans of this decentralized
network. Sources reveal that Hathor also has plans to implement side DAGs for 3rd party
oracle incorporation.

As mentioned before, Hathor has grabbed the spotlight since its launch, and although a
very new currency but it has the convincing potential to compete with other mature
cryptocurrencies. Hathor has put forward ambitious plans, and in the crypto world, all
eyes are set on them to witness whether they can pull these off and stand out.

If you are interested in engaging your business growth with blockchain development
solutions, then we will be happy to partner with you. Our team of blockchain developers
can brainstorm, design and develop scalable and innovative blockchain solutions for
your business.

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