What is Hedera? Your Complete HBAR Guide for 2025

What is Hedera? HBAR Explained – September 2025

Hedera is a public network designed for a decentralized digital world, with HBAR being its native cryptocurrency. It provides a platform for developers and businesses to create powerful, decentralized applications (dApps) with speed and security.

It is a public distributed ledger that sidesteps the traditional blockchain structure. Instead, it operates on a technology called hashgraph consensus. This allows for speedy and affordable transactions. This makes it a practical option for everything from micropayments to complex financial services and gaming.

It’s built to be the trust layer of the internet, a secure and open foundation for anyone to use. Big companies, startups, and individual developers use Hedera to build applications that require high performance and reliability. The network’s entire construction is based on a different approach to reaching agreement in a distributed system.

Why is Hedera Unique? HBAR Features

Several key characteristics of Hedera make it a notable project in the digital asset space. Its architecture and operational model offer a different set of trade-offs compared to many other public networks.

The foundation of Hedera is its hashgraph consensus mechanism. Unlike a blockchain that processes transactions in blocks, Hashgraph allows nodes to “gossip” information about transactions to each other. This method is highly efficient, as it enables the network to process a massive number of transactions in parallel.

Hedera can handle over 10,000 transactions per second, with transaction finality reached in just 3-5 seconds. This speed represents a significant improvement over many older networks. Furthermore, this efficiency translates to remarkable energy savings. The network is not just carbon-neutral; it’s carbon-negative, consuming a tiny fraction of the energy used by traditional proof-of-work systems.

Another standout characteristic is Hedera’s governance structure. The network is overseen by the Hedera Council, a body composed of up to 39 leading global organizations from various industries. Members include well-known companies such as Google, IBM, Boeing, and LG Electronics.

This model is designed to provide stable and dependable decision-making for the network’s future. Council members are term-limited and each has an equal vote, ensuring no single company or small group can control the network’s direction. This approach provides a level of accountability that is particularly appealing for enterprise-grade applications.

Hedera also offers built-in services that make development more straightforward and cost-effective. The Hedera Token Service (HTS) enables the creation and management of both fungible and non-fungible tokens directly on the network, often without requiring a complex smart contract. This enables faster, more secure, and less expensive token issuance.

Speaking of cost, transaction fees on Hedera are not only low but also predictable. Fees are fixed in USD and average a mere $0.0001, paid in the equivalent amount of HBAR. This stability is crucial for businesses developing applications that process a high volume of transactions. Ultimately, the combination of the high-performance hashgraph consensus, a unique governing council, and low-cost native services gives Hedera its distinctive position.

Hedera History, Facts & Statistics

Hedera stands out in the crowded field of digital ledgers because it isn’t a blockchain at all. It’s a public network that utilizes a distinct type of distributed ledger technology known as a hashgraph. This approach allows it to process transactions with greater speed, lower costs, and more predictable performance than many of its blockchain-based counterparts. The entire system is built for real-world, enterprise-level applications that demand high throughput and security.

The story of Hedera begins with the mathematical innovation of its co-founder, Dr. Leemon Baird. An American computer scientist, Baird, invented the hashgraph consensus algorithm in 2015. He and his business partner, Mance Harmon, founded a company called Swirlds to build on this new technology. Their goal was to solve the core inefficiencies they saw in blockchain technology: slow speeds, high fees, and issues with fairness. By 2018, they formed Hedera to bring a public network powered by hashgraph to the world.

Hedera Key Facts & Statistics

• The Hedera network has processed over 71.5 billion total mainnet transactions.
• There are more than 9 million accounts created on the Hedera mainnet.
• Hedera is a distributed ledger built on the hashgraph consensus algorithm.
• The hashgraph consensus mechanism provides asynchronous Byzantine Fault Tolerance (aBFT), considered the highest level of security for a distributed system.
• The network is capable of processing 10,000+ transactions per second (TPS), though this is currently throttled for cryptocurrency transactions.
• Transactions achieve finality in just 3-5 seconds.
• The average cost per transaction is incredibly low, at approximately $0.0001.
• Hedera is an exceptionally energy-efficient network, using an average of just 0.000003 kWh per transaction, making it carbon-negative.
• The network is governed by a council of up to 39 term-limited global organizations with equal voting rights.
• HBAR is the native cryptocurrency of the Hedera network, with a fixed total supply of 50 billion HBAR.
• Hedera was selected by Wyoming’s Stable Token Commission for the Frontier Stable Token (FRNT), the first state-issued stablecoin in the U.S.
• The Hedera Token Service (HTS) allows for the creation of fungible and non-fungible tokens (NFTs) directly on the network layer, without needing complex smart contracts.

HBAR Price Predictions. Is Hedera Going to Crash or Moon in 2025

HBAR is characterized by significant price volatility. Its value can experience sharp upward trends and steep downturns, often in short periods. This is influenced by a wide range of factors, from technological updates to global economic shifts. Throughout its history, HBAR has experienced both dramatic peaks and valleys, reflecting the dynamic nature of this environment.

The token reached its all-time high of over $0.57 in September 2021 during a widespread bull run in the crypto market. On the other end of the spectrum, its all-time low was recorded at just above $0.01 in early 2020. These record prices show the wide range of HBAR’s valuation and highlight the potential for both substantial gains and losses for holders.

For 2025, expert analysis on HBAR’s price is mixed, reflecting the complex nature of the market. Some analysts offer a bullish outlook, with predictions suggesting HBAR could test resistance levels around $0.26 and potentially climb higher. These optimistic forecasts are often based on the network’s strong fundamentals, such as its high transaction speed, low fees, and growing enterprise adoption.

Other experts maintain a more cautious stance. They point to the overall market’s unpredictability and macroeconomic pressures as potential headwinds. Some price predictions for 2025 place HBAR in a more conservative range, with some estimates suggesting it could trade between $0.09 and $0.15. These analyses often take into account the long-term token release schedule, which could introduce more supply into the market and temper price increases.

Several key factors will likely influence HBAR’s price trajectory. On the positive side, the network’s utility is a primary driver. As more decentralized applications (dApps) are built on Hedera and transaction volume increases, the demand for HBAR to pay for network services naturally rises. Strategic partnerships and integrations, particularly with large enterprises, can also significantly boost confidence and attract investment.

On the other hand, the perception of centralization due to the council-led governance model could be a drawback for some crypto purists, potentially limiting its appeal compared to more decentralized projects. Broader market sentiment also plays a crucial role; a bear market for cryptocurrencies would likely pull HBAR’s price down regardless of its individual progress.

Finally, the scheduled release of HBAR tokens from the treasury must be carefully managed to strike a balance between ecosystem development and market stability.

Hedera Risks, Scams, and Hacks

Investing in or trading HBAR comes with its own set of challenges, much like any other digital asset. Beyond the usual market volatility, the Hedera ecosystem has become a target for specific scams designed to trick users and drain their wallets.

The most notable threat targeting the Hedera network involves a clever abuse of the airdrop feature in non-custodial wallets. Scammers have been sending unsolicited Non-Fungible Tokens (NFTs) to users’ wallets. While receiving a random NFT might seem harmless or even like a bonus, the danger lies in the attached “memo” section. This text field, meant to provide context for a transaction, is being used to embed malicious links.

These links often lead to phishing websites that look legitimate and promise additional rewards or access to a new decentralized application (dApp). To claim these ‘rewards,’ the site prompts the user to connect their wallet. This connection process is a trick to get the user to approve a malicious smart contract or, in the worst-case scenario, to enter their private keys or seed phrase.

The Federal Bureau of Investigation (FBI) has issued warnings about this specific scam, noting that once this information is entered, criminals gain full access to the user’s wallet and can steal all their cryptocurrency.

How to Avoid Hedera Risks, Scams and Hacks?

Staying safe requires a healthy dose of skepticism and a consistent security routine. Here are some key things to watch out for to minimize risks:

• Treat all unsolicited airdrops with suspicion. If you receive an NFT or token you didn’t ask for, it’s best to ignore it. Do not interact with any links included in the transaction’s memo.
• Never click on links from unknown sources, whether they appear in your wallet, on social media, or in a phishing email. Always type official URLs directly into your browser.
• Your seed phrase is the master key to your wallet. Never, under any circumstances, should you type your seed phrase into a website. No legitimate dApp, wallet, or service will ever ask for it.
• If you receive an email or message from someone claiming to be from Hedera or a related project, verify it. Go to the official website or social media channels to confirm any ongoing promotions or airdrops.
• Regularly check your account activity for any unrecognized transactions or login attempts.

How to Secure Your HBAR?

Taking proactive steps to protect your HBAR is critical. A strong defense can make you a much harder target for criminals.

• Use a Hardware Wallet: Storing your HBAR on a hardware wallet, such as a Ledger, keeps your private keys offline and out of reach of online hackers.
• Choose a Reputable Software Wallet: For daily transactions, use a well-regarded software wallet. HashPack, a popular wallet in the Hedera ecosystem, has integrated security tools from Blockaid that actively scan for malicious dApps and scam tokens before you interact with them.
• Enable Two-Factor Authentication (2FA): Always activate 2FA on any exchange accounts where you hold HBAR. This adds a vital layer of security beyond just a password.
• Bookmark Official Sites: Save the official web addresses for the exchanges and platforms you use. This prevents you from accidentally landing on a phishing site from a search engine or a bad link.
• Separate Your Funds: Consider using a “hot wallet” with a small amount of HBAR for active trading or dApp interaction, while keeping the majority of your holdings in a secure cold storage wallet.

Always rely on information from official Hedera sources. Be extremely careful about connecting your wallet to third-party sites, especially those promoted through unexpected airdrops or social media posts.

Latest News on Hedera

Since its mainnet launch, Hedera has focused on building a network designed for real-world, high-volume applications. Its hashgraph consensus mechanism and unique governance model, run by a council of global organizations, have helped it create a stable and efficient platform.

This foundation has attracted a steady stream of partnerships and use cases, particularly from enterprise and public sector organizations looking for a reliable distributed ledger. Recent developments show a continued focus on security, real-world finance, and ecosystem growth.

Here are some of the latest updates and upcoming events:

• First State-Issued Stablecoin: Hedera was selected for Wyoming’s Frontier Stable Token (FRNT), the first stable token to be issued by a U.S. state. The token is backed by U.S. dollars and short-term Treasuries, and is designed for public finance applications, such as contractor payments and emergency disbursements.
• Enhanced Network Security: Hashgraph has partnered with Web3 security leader Blockaid to integrate real-time protection across the Hedera network. The tools, which scan for scams, fraud, and malicious activity, are already live in the HashPack wallet.
• Celebrating Open Collaboration: Project Hiero, the open-source version of the Hedera codebase, is marking its first anniversary. This highlights the project’s commitment to transparent and neutral code governance.
• Hedera Africa Hackathon: The Hashgraph Association is co-hosting a massive hackathon for the African continent, running from August 1 to September 30, 2025, with a $1,000,000 prize pool.
• Sibos 2025 Conference: Hedera will have a significant presence at Sibos 2025 in Frankfurt, Germany, from September 29 to October 2, 2025, where it will present real-world financial solutions built on its network.

To stay up-to-date with the fast-paced world of Hedera, it’s best to follow their official channels. This ensures you get accurate and timely information directly from the source. To stay updated with these developments, you can also check out the latest Hedera news.

How to Get Started with Hedera?

It is simple to get started with the Hedera network. For developers, Hedera offers intuitive APIs and EVM smart contracts, along with SDKs and tools to facilitate building projects.

For those new to Hedera, here is a step-by-step guide to getting started:

1. Create a Hedera Wallet: The first step is to set up a wallet that supports HBAR and other Hedera-based tokens. A popular non-custodial wallet in the Hedera ecosystem is HashPack. Creating a wallet will give you a public address to receive funds and a secure way to manage your assets.
2. Acquire HBAR: You can purchase HBAR from various cryptocurrency exchanges.
3. Explore the Hedera Ecosystem: Once you have HBAR in your wallet, you can begin to explore the growing ecosystem of decentralized applications (dApps) built on Hedera. These applications span various sectors, including decentralized finance (DeFi), NFTs, gaming, and more.
4. Participate in Staking: HBAR holders can contribute to the network’s security by staking their tokens to network nodes. In return for staking, you can earn rewards. This process helps to secure the network and allows you to participate in its operation.
5. Build on Hedera: For developers, Hedera offers a robust platform for building decentralized applications (dApps). The network supports smart contracts written in Solidity, making it accessible for those familiar with Ethereum development. With high throughput and low, predictable fees, Hedera is suitable for a wide range of applications.

What is Hedera FAQs

Here are answers to some frequently asked questions about Hedera:

What is the Use of Hedera?

Hedera is a public network for building and running decentralized applications. Its primary uses include payments, decentralized finance (DeFi), tokenizing assets, and creating verifiable logs for items such as supply chain data. It supports 10,000 transactions per second with an average cost of just $0.0001, making it suitable for high-volume applications that require fast, low-cost operations.

Can Hedera Reach $5?

Reaching $5 per HBAR would require a market capitalization of $250 billion, given its fixed total supply of 50 billion tokens. While this is a substantial figure, it is not unheard of for a top-tier crypto asset. This valuation depends entirely on widespread enterprise adoption, favorable market conditions, and continued growth of the overall digital economy.

Is Hedera Better Than XRP?

Hedera and XRP are built for different purposes. Hedera’s hashgraph technology is designed for a broad range of decentralized applications with 10,000+ TPS, while XRP focuses on cross-border payments with speeds of around 1,500 TPS. Hedera’s unique governance model, run by a council of global organizations, also sets it apart from XRP’s structure.

Is Hedera Better Than Bitcoin?

Hedera offers significant performance advantages over Bitcoin for applications requiring high speed and low costs. While Bitcoin processes about 7 transactions per second, Hedera handles over 10,000. Furthermore, Hedera is far more energy-efficient, using a tiny fraction of the energy per transaction compared to Bitcoin’s proof-of-work system, and offers transaction finality in 3-5 seconds.

Can HBAR Beat Ethereum?

Hedera provides faster speeds and more predictable, lower fees than Ethereum’s mainnet. However, Ethereum has a much larger and more established ecosystem of developers, applications, and users. While Hedera is EVM-compatible, allowing for easy migration of apps, overcoming Ethereum’s massive network effect presents a significant challenge for any competing platform.

What Wallet Holds Hedera?

You can store HBAR in various software and hardware wallets. HashPack is a very popular community wallet created specifically for the Hedera ecosystem. For maximum security, hardware wallets like Ledger offer support for HBAR, allowing you to keep your assets offline. Other software options include Exodus and Atomic Wallet.