– Article in collaboration with LiteBit. This article is in no way an investment advice, but simply the presentation of a technical project around the blockchain –
Hi friends, with this article on Harmony I am starting a series of presentations of different blockchain projects that work for me. In the weeks (and months) to come, you should therefore be entitled to an analysis of several crypto projects on this site. Hope this helps you see a little more clearly what they actually offer, what can be done in practice, etc. This week I start with harmony (whose acronym is $ ONE), blockchain in circulation since mid-2018.
Visualization of the project
Harmony is what we call an L1 blockchain (for Layer 1), that is to say (to put it simply) that it serves as the basis on which a set of various applications is grafted that, in the end, will form a vast ecosystem. As in the case of the Ethereum blockchain, for example.
But unlike the latter, Harmony aims above all to be scalable and to offer fast transactions (blocks confirmed in less than 2 seconds) and low cost (about 100 times lower). 3 elements that have been “blocking” on ETH for years. All without sacrificing network security or decentralization. Network that currently already has more than 165 validators (the list here).
the protocol uses the sharding technique in particular, which allows you to cut a set of data into smaller packets, and also in the network part, as memory and for each transaction. For more technical details on the method, you can read this article which I find quite well explained and complete. Only they go further by adding an algorithm that introduces a part of randomness in the validation of the “shards”.
THE ONLY token
the $ A token it is what allows you to interact with the blockchain and the various applications based on it. It is used, for example, to pay transaction fees, to receive rewards if you are playing with validators, to provide liquidity or to express your opinion on the proposals made by the protocol. Since the project is community-based, each token holder can effectively validate (or reject) blockchain (governance) improvement projects.
Why is Harmony an interesting project?
Rather than relying on proof of work (like Bitcoin) to validate transactions, Harmony opted for proof of participation. But improving it through a validator election process called Effective Proof-of-Stake (EPoS), which is the first mechanism of its kind that focuses on sharing and prevents centralization of stakes. As I understand it, the more weight a validator gains in the system, the more nodes it has to offer to avoid too much concentration.
As the ecosystem’s central protocol, its strength will come mainly from applications that will be grafted onto the blockchain and extend its possibilities while creating demand for $ ONE. This is already the case with projects involving decentralized finance (Beefy.finance), liquid staking (Tranquil Finance), NFTs (DaVinci, Harmony One Punks), games (DeFi Kingdoms, see below), wallets, apps decentralized … there are already dozens of them. Coin98Analytics on Twitter he made a graphic representation of it and it is quite interesting for a blockchain that is less than 3 years old.
Recently this is the project that has exploded on the Harmony blockchain. It is a kind of mix between online gaming (it is possible to do quests, etc.), NFT and decentralized finance (it is possible to provide liquidity in different pools, etc.). To play DeFi Kingdoms, you just need to connect to your Metamask wallet (leave the link if you don’t know how to use Metamask) and have at least 1 $ ONE token on it.
The game has its own token (the $ JEWEL), it allows you to advance a character, perform swap actions or even generate interest on your assets (staking, liquidity provision). In short, it truly straddles the two worlds.
Another very interesting aspect to attribute to Harmony is its interoperability with other blockchains. There are already bridges for Binance Smart Chain, Ethereum or even Polkadot and others are on the way. This allows you to transfer your cryptocurrency from one blockchain to another quickly and inexpensively.
What is the price of ONE?
Where to buy ONE?
If you want to buy your first $ ONE, the easiest way is to go through many platforms like LiteBit. I have already explained in detail how to use LiteBit, because with almost 10 years of experience in the sector, it is a reliable and solid site. And that is offering more and more tokens for purchase since since November (the date of my previous article) they have added no less than fifteen crypos, including Fantom (FTM) or Near Protocol (NEAR).
So, and as I always do, I recommend that you store it on a Ledger key for added security. But if you are more into adventure mode you can also, like Indiana Jones, bet UNO and delegate your chips directly from Ledger. So you don’t lose control.
See you soon for the presentation of another crypto project!