Hedera is a public distributed ledger that uses hashgraph consensus rather than traditional blockchain technology. Founded by Leemon Baird and Mance Harmon in 2018, the network differentiates itself through its unique consensus algorithm and its governance model — a council of up to 39 major organizations that includes Google, IBM, Boeing, Deutsche Telekom, and other global enterprises.
The hashgraph consensus mechanism, invented by Baird, uses a “gossip about gossip” protocol combined with virtual voting to achieve consensus. This approach achieves high throughput (theoretically up to 10,000 transactions per second), low latency (3-5 second finality), and fair transaction ordering. The network also offers predictable fees — typically fractions of a cent — making it practical for high-volume enterprise applications.
Hedera provides several network services beyond simple token transfers. The Hedera Token Service enables token creation without smart contracts. The Consensus Service provides timestamps and ordering for any data stream. And the Smart Contract Service runs EVM-compatible smart contracts, letting Ethereum developers deploy to Hedera with minimal changes.
The governing council model is Hedera’s most distinctive organizational feature. Council members serve limited terms, and each gets an equal vote on network decisions. This structure aims to prevent the concentration of influence that can occur in other networks while providing the legitimacy that enterprises need to adopt public blockchain technology.
Hedera has gained traction in areas like supply chain tracking, identity verification, and carbon credit markets. ServiceNow, Avery Dennison, and Standard Bank have built applications on the network. The HBAR token is used for transaction fees and network staking.
Based in Richardson, Texas, Hedera employs a team focused on network development and enterprise adoption. The project’s emphasis on governance and regulatory compliance positions it as a middle ground between fully decentralized networks and private enterprise blockchains.
